Page 16 - Budget-2018-Highlights-en-flip

TAX INCENTIVES

Extension and Enhancement of Various Other Schemes

Scheme Current Proposed changes

Insurance Business IBD-IBB grants approved insurance and  To further strengthen Singapore’s position
Development -
Insurance Broking reinsurance brokers a concessionary as a leading insurance and reinsurance
Business (“IBD-IBB”)
scheme tax rate of 10% on commission and fee centre, the IBD-IBB scheme will be extended

income derived from insurance broking till 31 December 2023.

and advisory services.

Insurance Business Development -  The IBD-SIBB scheme will be allowed to

Specialised Insurance Broking Business lapse after 31 March 2018. With its lapsing,

(“IBD-SIBB”) scheme grants insurance specialty insurance broking and advisory

and reinsurance brokers a services will be incentivised under the IBD-

concessionary tax rate of 5% on IBB scheme, at a concessionary tax rate of

commission and fee income from 10%, subject to meeting conditions.

specialty insurance broking activities.

The two schemes are scheduled to lapse
after 31 March 2018.

Approved Special The ASPV scheme grants the following  To continue developing the structured debt
Purpose Vehicle
engaged in asset tax concessions to an ASPV engaged in market, the ASPV scheme will be extended
securitisation
transactions (“ASPV asset securitisation transactions: till 31 December 2023, with the exception of
scheme”)
stamp duty remission in (d).

(a) Tax exemption on income derived

by an ASPV from approved asset  The stamp duty remission in (d) will be
securitisation transactions;
allowed to lapse after 31 December 2018.

(b) GST recovery on its qualifying
business expenses at a fixed rate of
76%;

(c) Withholding tax exemption on
payments to qualifying non-
residents on over-the-counter
financial derivatives in connection
with an asset securitisation
transaction; and

(d) Remission of stamp duties on the
instrument relating to transfer of
assets to the ASPV for approved
asset securitisation transactions.

Income derived by The scheme is scheduled to lapse after  To strengthen the primary dealer network
primary dealers from 31 December 2018. and encourage trading in SGS, the tax
trading in Singapore exemption on income derived by primary
Government Tax exemption is granted on income dealers from trading in SGS will be extended
Securities (“SGS”) derived by primary dealers from trading till 31 December 2023.
in SGS.

The tax exemption is scheduled to lapse
after 31 December 2018.

14 | RSM