Various Tax Incentive Schemes Which Include Double Tax Relief, Unilateral Tax Credit Use by Singapore Government to Attract Foreign Investment
Autor: Terrylee • April 25, 2012 • Research Paper • 3,017 Words (13 Pages) • 1,557 Views
Executive Summary
The aim of this report is to present the various tax incentive schemes which include Double Tax Relief, Unilateral Tax Credit use by Singapore government to attract foreign investment.
We first provide a brief overview of the Inland Revenue Authority of Singapore (IRAS) including its history and missions. We then review Singapore’s tax system and purpose of tax allocation. The next section covers Singapore’s Tax incentive schemes, that is Double Tax Agreement(DTA) and Unilateral Tax Credit implemented by the government to deal with double taxation issue thereby attracting foreign investment. And following section, we discuss the various tax incentive schemes introduced by three government bodies associated with IRAS. The last section provides some data on achievement of tax incentive schemes as well as concluding current Singapore current tax status and discuss about future performance.
Content
1. Introduction 1
2. Tax Allocation Purposes 1
2.1 Tax for National Building 1
2.2 Fiscal Policy 2
2.3 Tax Policy 2
3. Tax Incentive 3
3.1 Concept of Double Taxation 3
3.2 Double Tax Relief (DTR) 4
3.3 Unilateral Tax Credit (UTC) 4
4 Sectoral Incentives 5
4.2 Economic Development Board (EDB) 5
4.1.1 Investment Allowance 5
4.1.2 Pioneer Industries 6
4.1.3 Development and Expansion Scheme Status 6
4.3 Maritime Port Authority of Singapore (MPA) 7
4.2.1 Approved International Shipping Enterprise (AISE) 7
4.4 Monetary Authority of Singapore 7
4.4.1 Financial Sector Incentive Scheme-Headquarter Services (FSI-HQ) scheme 7
5 Achievement of Singapore Tax Incentive 8
Conclusion 10
Reference 12
1. Introduction
A tax can be defined as a “pecuniary burden laid upon individuals or property owners to support the government which a payment exacted by legislative authority.” In Singapore, the Inland Revenue Authority of Singapore (IRAS) is responsible for tax issue.
Initially,
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