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On 19 February 2018, Singapore's Minister for Finance delivered, in Parliament, the Budget for financial year 1 April 2018 to 31 March 2019 ("Budget 2018"). Budget 2018 provides a strategic and integrated plan to position Singapore for the future and prepare the nation to take on three major shifts in the coming decade: (1) the shiftin global economic weight toward Asia; (2) emergence of new technologies; and (3) the aging population of Singapore. Specifically, Budget 2018 seeks to prepare Singapore to guard against challenges and capture opportunities by developing it into a more vibrant and innovative economy, building a smart, green, and livable city, fostering a caring and cohesive society, and planning for a fiscally sustainable and secure future.
Several tax changes were announced to provide near-term support to businesses, foster continuing innovation, encouraging capabilities building and forging of partnerships, all with the aim of developing a better future together for Singapore. Key tax initiatives in Budget 2018 are summarized below.
Introduction of goods and services tax on imported services. To ensure a fair and resilient tax system in a digital economy, GST will be implemented on 1 January 2020 on imported services consumed in Singapore. Business-to-business imported services will be taxed via a reverse-charge mechanism. Only businesses that make exempt supplies or do not make...