Singapore Budget 2011

Budget 2011 for Individiuals

1. CPF: Raise the employer contribution rate by another 0.5 percentage points, from 15.5%  to 16%, which will restore the total contribution rate to 36%. The additional 0.5% will go into the Special Account. Revise the CPF Salary Ceiling from $4,500 to $5,000 per month. To take effect in September 2011.
2. Income Tax Reduction for 2011: Personal income tax rebate of 20% for individual resident taxpayers for YA 2011. The rebate will be capped at $2,000
3. Income Tax Reduction for 2012 (see table 1) 
4. Growth Dividends (see table 2) by 1st May 2011
5. Household rebates (see table 3)
6. SRS: Raise the contribution cap within the Supplementary Retirement Scheme. 
7. Child Development Credit scheme ($300-$400) for all Singaporean children aged six and below. The Child Development Credit can be used to pay for their children’s preschool, childcare, and medical expenses. The Child Development Credit will be paid into the Children Development Accounts (CDAs), which most children already have.
8. Top-up each primary and secondary school student’s Edusave account by $130
9. Top-up CPF Medisave Accounts of Singaporeans aged 45 and above. Those aged 45 to 49 will receive up to $300, while those aged 50 to 59 will get a top-up of up to $400. Older Singaporeans will receive more, with those 80 and above getting up to $700
10. Remove radio ($27) and television ($110) licence fees permanently

Table 1

Table 2

 Table 3

Industries that will benefit from Budget 2011

1. Banks: Exempt all interest payments made by banks and similar financial institutions from withholding tax.
2. Maritime (shipping, ports, ship builders): Withholding tax exemption for interest payments on loans to build or buy ships. GST zero-rating for repair and maintenance services performed on ship parts and components.
3. Biomedical: GST relief for imported clinical trial materials, as well as enhance the Approved Contract Manufacturer and Trader Scheme
4. Commodities:  Enhance the Global Trader Programme to qualify all derivative trades under the scheme
5. Green Vehicles: Extend the Green Vehicle Rebate scheme for another year till 31 December 2012. In the meantime, we will undertake a comprehensive review on the measures to promote the adoption of green vehicles, as part of our overall efforts to promote sustainable development
6. IT and Machinery Suppliers: Allow businesses to deduct from their taxable income 400% of their expenditures in any of the six broad categories of investment under the scheme, for example, training or investment in automation equipment
7. Construction:  Spend $10 billion to upgrade homes and rejuvenate estates over the next 10 years
8. Specialised storage facilities that store high-value collectibles such as art and antiques: GST zero-rating for specified services supplied to overseas persons, if they are performed on goods kept in qualifying specialised warehouses and eventually sent overseas