Public Consultation On Changes To The Income Tax Act26 Jun 2008
The Ministry of Finance will be conducting a public consultation on the Draft Income Tax (Amendment) Bill 2008 to seek public feedback. This exercise will last from 27 June to 28 July 2008.
2. The proposed amendments to the Income Tax Act (ITA) are to cater for the Budget 2008 tax changes. These changes cover the following:
- incentives to encourage pervasive private sector R&D,
- tax deduction for expenditure on fixtures & fitting, and
- enhancements to course fee relief for individuals.
3. In addition to the tax changes announced in Budget 2008, the amendments also provide for other refinements to existing tax policies and tax administration. These refinements include the following:
- the introduction of the 'No Filing System' where individual taxpayers can have their tax assessed by IRAS without having to file tax returns,
- formalising the double tax deduction (DTD) eligibility for donations made via qualifying grantmaking philanthropic organisations ('grantmakers') to Institutions of Public Character (IPCs) and advancing the effective date from 1 January 2008 to 15 February 2007 (i.e. Budget Day 2007, when this scheme was announced). Grantmakers who wish to take advantage of this scheme for donations that were received on or after 15 February 2007 must register with the Inland Revenue Authority of Singapore (IRAS) by 31 December 2008. Grantmakers who register after this date would only be allowed to issue DTD receipts from the date of successful registration.
4. The consultation guidelines, draft Income Tax (Amendment) Bill 2008 and explanations for the amendments can be found in the government's central consultation portal www.reach.gov.sg as well as the Ministry of Finance's website. Respondents may send their comments to the Ministry of Finance directly via the website, email, fax or post.
MINISTRY OF FINANCE