The Income Tax (Amendment) Act 2014 (the “Amendment Act”) has been gazetted on 28 November 2014 and will come into force on various dates as provided in section 1 of the Amendment Act.

The Amendment Act implements the tax changes in the Government’s 2014 Budget Statement and makes other amendments to the Income Tax Act (the “ITA”). The following are the key changes.

2014 Budget Statement changes

  • Extend and enhance the Productivity and Innovation Credit (“PIC”) scheme;
  • Extend the section 14A tax deductions for costs for protecting intellectual property;
  • Extend the R&D tax measures;
  • Extend the section 19B writing down allowance for acquisition of qualifying intellectual property rights;
  • Extend and enhance the Land Intensification Allowance (LIA) scheme;
  • Remove the requirement to withhold tax for payments made to Singapore branches of non-resident companies;
  • Provide for the treatment of Basel III Additional Tier 1 instruments; and
  • Extend and refine the tax incentive schemes for Qualifying Funds.

Non-Budget changes

  • Additional measures to curb PIC abuse; and
  • Enable Singapore to ratify the Convention on Mutual Administrative Assistance in Tax Matters.