Corporate - Significant developments

Last reviewed - 06 February 2020

The 2019 Budget changes have been legislated. They include the following:

  • Extension of writing down allowance for capital expenditure incurred on acquiring qualifying intellectual property (IP) rights to year of assessment 2025 (income year 2024).
  • Extension of the 100% investment allowance under the Automation Support Package to 31 March 2021.
  • Extension of the concessions for Singapore-listed real estate investment trusts (S-REITs) and REIT-exchange traded funds (REIT-ETFs) to 31 December 2025, and removal of the sunset clause for the tax exemption on distributions received by individuals.
  • Extension, along with refinements, of the tax incentive schemes for qualifying funds (under sections 13CA, 13R, and 13X of the Income Tax Act) managed by Singapore-based fund managers to 31 December 2024.
  • Approved Unit Trust and Designated Unit Trust schemes have been allowed to lapse (with certain transitional measures). 
  • Reduction in the goods and services tax (GST) import relief for value of goods bought overseas from 19 February 2019.
  • Extension of the concession for partial recovery of input GST for qualifying funds to 31 December 2024.
  • Extension of the GST remission for S-REITs and Singapore-listed registered business trusts in the infrastructure business, ship leasing, and aircraft leasing sectors to 31 December 2025.

For details of the 2019 Budget proposals, refer to our 2019 Budget Commentary at

Other non-Budget changes include the following:

  • Enhancement to the Maritime Sector Incentive (MSI) scheme from 12 December 2018.
  • Introduction of the tax framework for Singapore Variable Capital Companies (VCCs) from 15 January 2020.
  • Entry into force from 1 January 2020 of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) provisions for withholding taxes in relation to the covered tax agreements between Singapore and other jurisdictions that have been ratified and taken effect.