Singapore's Government Budget 2009

Our Finance Minister, Tharman Shanmugaratnam delievered the Singapore Government Budget for 2009 on Thu. I must say most of the tax measures that I have predicted were spot on.

1. A corporate tax rate cut to 17%- A move to make Singapore a more pro-business enviornment to work in than Hong Kong.
2. An enhancement to the loss carry back relief - The amount has been increased from $100,000 to $200,000 and the losses that were allowed to carried back were increased from a year to 3 years
3. Personal Tax Rebate - A one off tax rebate at 20%, similar to the one given for Year of Assessment 2008, is given in this year as well.
4. Enhancement to the Renovation Deduction

 

The measures that were not expected but I thought it was good were

1. Helping employers by giving them a cash rebate for staff on their CPF payroll.
2. Enhancement to capital allowances claim for plant & machinery that used to qualify for 3 years of tax deduction to 2 years.

Let's hope that this Budget will go in the long way to help us and Singapore emerge stronger from the crisis.