FOCUSISCA PRE-BUDGET ROUNDTABLE 2017
ISCA PRE-BUDGET ROUNDTABLE 2017 PANELLISTS
BY
PERRINE OH AND LOKE HOE YEONG
ISCA PRE-BUDGET ROUNDTABLE
Advancing our Future: Adapt. Innovate. Change
2017
T+ (Co-Chair)
GERARD EEPresident
Institute of Singapore
Chartered Accountants
+ (Co-Chair)
LIANG ENG HWAChairman
Government Parliamentary
Committee for
Finance, Trade & Industry
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February 2017 15
+ ANG YUITVice President
(Membership & Training)
Association of Small &
Medium Enterprises
+ CHIU WU HONGHead of Tax
KPMG in Singapore
+ R. DHINAKARANPresident
Singapore Retailers
Association
+ HO MENG KITChief Executive Officer
Singapore Business
Federation
+ JIMMY KOHHead of Investor Relations
& Research
UOB Ltd
+ KON YIN TONGManaging Partner
Foo Kon Tan LLP,
Vice President
Institute of Singapore
Chartered Accountants
Panellists (seated, from left) Cindy Lim, Tax Partner, RSM Tax Pte Ltd; Augustine Tan, President, Real Estate Developers’ Association of Singapore; Ho Meng Kit, Chief Executive Officer, Singapore Business Federation; Co-Chairs Gerard Ee, President, Institute of Singapore Chartered Accountants (ISCA) and Liang Eng Hwa, Chairman, Government Parliamentary Committee for Finance, Trade & Industry; R. Dhinakaran, President, Singapore Retailers Association; Kon Yin Tong, Managing Partner, Foo Kon Tan LLP and Vice President, ISCA; Prof Sum Yee Loong, Board Member, Singapore Institute of Accredited Tax Professionals; (standing, from left) Low Hwee Chua, Regional Managing Partner, SEA Tax and Legal, Deloitte & Touche LLP; Kenneth Loo, President, Singapore Contractors Association Limited; Erman Tan, President, Singapore Human Resources Institute; Chiu Wu Hong, Head of Tax, KPMG in Singapore; Victor Mills, Chief Executive, Singapore International Chamber of Commerce; Jimmy Koh, Head of Investor Relations & Research, UOB Ltd; Ang Yuit, Vice President (Membership & Training), Association of Small & Medium Enterprises
FOCUSISCA PRE-BUDGET ROUNDTABLE 2017
+ PROF SUM YEE LOONGBoard Member
Singapore Institute of Accredited
Tax Professionals
PRESSING ISSUES FACED
BY BUSINESSES
+ CINDY LIM Tax Partner
RSM Tax Pte Ltd
+ KENNETH LOOPresident
Singapore Contractors
Association Limited
+ LOW HWEE CHUARegional Managing
Partner, SEA Tax and Legal
Deloitte & Touche LLP
+ VICTOR MILLSChief Executive
Singapore International
Chamber of Commerce
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The Roundtable brought together leaders of trade bodies, accounting firms and C-suite executives to discuss and provide recommendations on Singapore Budget 2017
+ ERMAN TAN President
Singapore Human
Resources Institute
+ AUGUSTINE TAN President
Real Estate Developers’
Association of Singapore
FOCUSISCA PRE-BUDGET ROUNDTABLE 2017
KON YIN TONG
KENNETH LOO
CHIU WU HONG
INTERNATIONALISATION
HO MENG KIT
R. DHINAKARAN
R&D AS A KEY COMPETITIVE
AND INNOVATION DRIVER
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ERMAN TAN
ANG YUIT
ATTRACTING AND
RETAINING TALENT
VICTOR MILLS
JIMMY KOH
(From left) Mr Liang and Mr Ee co-chaired ISCA Pre-Budget Roundtable 2017
FOCUSISCA PRE-BUDGET ROUNDTABLE 2017
TAX MEASURES TO
ALLEVIATE BUSINESS COSTS
LOW HWEE CHUA
AUGUSTINE TAN
CINDY LIM
+ Increase the cap and number of years allocation for the Loss Carry-Back Relief for
companies, as it is currently only for one year and up to $100,000.
+ The wage credit scheme should be extended, given the current difficult economic times
for businesses and employees alike.
+ To further help SMEs grow and internationalise, the government should reconsider
the conditions under the mergers and acquisitions (M&A) allowance scheme – such as
the requirement for acquiring companies to carry on a trade or business in Singapore
on the date of share acquisition and to have at least three local employees (excluding
company’s directors) throughout the 12-month period before the date of share
acquisition – which should be relaxed due to practical commercial reasons.
+ In light of the new digital economy, there were suggestions on enhancing tax deduction
and allowance for software and other related payments. Such enhanced tax deduction
and allowance has the effect of incentivising businesses (and in particular, SMEs) to
invest in technology and other enablers of productivity and innovation, especially in the
new digital economy.
+ Singapore has the potential to be a hub for cargo movement. Incentives, such as
double tax deduction schemes to benefit business activities in growth sectors like
supply chain management, should be introduced to transform Singapore into a hub
for cargo movement.
+ To help companies venture overseas, the foreign tax credit system should be enhanced.
Currently, it cannot be carried forward or backward. Singapore companies may not have
sufficient Singapore tax in Singapore, and would have to forfeit the foreign tax credit received.
+ Introduce property tax exemptions to buildings undergoing regeneration/additions/
alterations. This would encourage owners to retrofit and upgrade their buildings as well
as adopt innovative solutions, in line with the government’s effort to rejuvenate the city
and ensure a more sustainable environment.
+ Review the current basis of property tax assessment for vacant land. A more equitable
system would be to tax the land on the basis of a value that takes into consideration its
lease term. The current basis of 5% of land value as the annual value of vacant land or
land designated for redevelopment is much higher than the 2% to 3% annual yield from
land investment.
Table 1 Tax measures to help alleviate business costs
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PROF SUM YEE LOONG
CONCLUSION
ISCA
Perrine Oh and Loke Hoe Yeong are Managers, Research, ISCA.
Mr Ee presented a token of appreciation to Mr Liang for co-chairing the Roundtable
Table 2 Ideas and measures to increase revenue
+ Do away with full tax exemption for new businesses for the first three years.
As the Inland Revenue Authority of Singapore (IRAS) has highlighted in the past,
this exemption has been liable to abuse, such as through the under-reporting of
company profits.
+ Raise property tax on vacant, second and subsequent properties owned by multiple-
property owners. This will induce them to let out their properties, which would make
the residential rental market more affordable.
+ IRAS could consider bringing foreign suppliers into their Goods and Services Tax
(GST) net. Offshore suppliers for digital goods and services should pay GST, which
would be important for levelling the playing field for domestic players in this area
who are liable for GST.