Extend corporate income tax rebate, M&A allowance to help ease rising business costs: SIATP

Tax professionals want these programs extended for several more years.

The Singapore Institute of Accredited Tax Professionals urged the government to extend its corporate income tax rebate and merger and acquisition allowance programs to help mitigate rising business costs in the country.

In its 2015 budget wishlist, the SIATP stated that extending these measures will help improve Singapore’s competitiveness.

The corporate income tax rebate measure, which was first rolled out in 2013, allows companies to receive a 30% tax rebate subject to a cap of $30,000 per year of assessment for YAs 2013 to 2015.

“In view of the modest economic outlook in 2015, it is proposed that the Corporate Income Tax Rebate be extended for another three years to YA 2018 to mitigate the costs of doing business in Singapore,” stated SIATP.

Under the M&A scheme, an M&A allowance will be granted to the acquiring company that acquires the ordinary shares of the target company from 1 April 2010 to 31 March 2015. The M&A allowance is at 5% of the value of acquisition, subject to a maximum amount of $5 million for all qualifying share acquisitions in the basis period for each Year of Assessment. The cap of $5 million will effectively allow for acquisitions of up to $100 million in any one YA.

As the M&A scheme will be ending on 31 March 2015, SIATP proposes that the scheme be extended for another five years.