In the upcoming Budget 2018, Singapore Institute of Accredited Tax Professionals (SIATP) has released a request for tax incentives. By introducing tax incentives, it will help improve Singapore’s economic productivity.
The project concentrates on having targeted tax incentives for businesses to accelerate their growth and would help boost economic productivity in the country according to SIATP.
SIATP also asks for the following actions which include introducing a fintech tax incentive, improve the current research and development (R&D), encourage R&D activities in company start-ups and small and medium enterprises (SMEs) and initiate a double deduction scheme for training expenditure.
As the Productivity and Innovation Credit (PIC) scheme in 2018, SIATP suggested that either Spring Singapore or Economic Development Board could supervise a system in which qualifying expenditure on approved R&D projects could see an additional 100% to 200% deduction, subject to a proposed annual cap of SGD $500,000.
The proposal comes amid Thailand allows up to 300% tax deductions for eligible expenditures acquired on R&D activities undertaken in the country.