PwC is calling on the Singapore government to double the threshold for personal income tax to S$40,000 in next year's budget in order to support the middle class.
According to the Straits Times, the management consultancy has submitted its proposals to the Ministry of Finance and the Monetary Authority of Singapore to consider whether they should be included in next year’s budget.
The details
- Under the current progressive tax regime, taxable income beyond the first S$20,000 (US$14,853) is taxed at graduated rates ranging from 2% to 22%. PwC believes the lowest two bands should be removed so that personal tax would start applying only to the first S$40,000 (US$29,709) of taxable income;
- The unpopular S$80,000 (US$59,418) cap on working mother's child relief, introduced in last year's budget, should be lifted to encourage married women to stay in the workforce;
- Other tax reliefs should be introduced, including for medical insurance, to encourage taxpayers to take up policies that supplement their Medishield coverage. There should also be relief on a foreign maid levy for taxpayers who employ helpers to care for their elderly parents or parents-in-law. PwC likewise suggests that the reimbursement of medical and dental care to an employee's parents and parents-in-law should not be treated as a taxable benefit;
- Local businesses should be encouraged to expand locally and overseas by enhancing the double deduction for internationalisation and introducing tax concessions both for training and to help companies go digital.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
PwC is calling on the Singapore government to double the threshold for personal income tax to S$40,000 in next year's budget in order to support the middle class.
According to the Straits Times, the management consultancy has submitted its proposals to the Ministry of Finance and the Monetary Authority of Singapore to consider whether they should be included in next year’s budget.
The details
- Under the current progressive tax regime, taxable income beyond the first S$20,000 (US$14,853) is taxed at graduated rates ranging from 2% to 22%. PwC believes the lowest two bands should be removed so that personal tax would start applying only to the first S$40,000 (US$29,709) of taxable income;
- The unpopular S$80,000 (US$59,418) cap on working mother's child relief, introduced in last year's budget, should be lifted to encourage married women to stay in the workforce;
- Other tax reliefs should be introduced, including for medical insurance, to encourage taxpayers to take up policies that supplement their Medishield coverage. There should also be relief on a foreign maid levy for taxpayers who employ helpers to care for their elderly parents or parents-in-law. PwC likewise suggests that the reimbursement of medical and dental care to an employee's parents and parents-in-law should not be treated as a taxable benefit;
- Local businesses should be encouraged to expand locally and overseas by enhancing the double deduction for internationalisation and introducing tax concessions both for training and to help companies go digital.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
