Tax Handouts In Singapore's Budget

Finance Minister, Tharman Shanmugaratnam, delivered Singapore’s budget plan for the 2011/12 fiscal year on February 18, and announced tax benefits to households and businesses totalling some SGD13bn (USD10.2bn).

He pointed out that Singapore’s economy had done particularly well in the past year. After two weak years in 2008 and 2009, when growth was close to zero, its gross domestic product (GDP) grew by a record 14.5% in 2010, and is forecast to grow by up to 6% this year. Thanks to the improved economic growth, the originally-expected budget deficit of SGD3.0bn, or 1% of GDP, in 2010/11, has been transformed into a much lower deficit of SGD0.3bn, or only 0.1% of GDP.

Singapore´s Finance Minister was therefore able to announce that, in 2011/12, companies will receive a 20% income tax rebate, capped at SGD10,000, or a small- and medium-sized enterprises (SME) cash grant of 5% of a company’s revenue, capped at SGD5,000. Companies will automatically receive the higher of the tax rebate or the grant when Inland Revenue Authority of Singapore assesses 2011/12 tax returns.

Shanmugaratnam said that the government’s long-term aim is to raise incomes by 30% in real terms over the next ten years by growing the economy, and helping businesses to invest, restructure and developing skills, while also introducing measures to expand support for lower- and middle-income Singaporeans.

To further encourage pervasive innovation and raise productivity efforts, the productivity and innovation credit (PIC) scheme will be simplified and enhanced. The amount of tax deduction or allowance will be increased to 400% (from 250%) of research and development (R&D) expenditure, for the first SGD400,000 (increased from SGD300,000) spent on each qualifying activity.

PIC benefits will also be made available to R&D made abroad; businesses will be allowed to combine the SGD400,000 expenditure cap per year for 2013 to 2015 into a new ceiling of SGD1.2m over the three years; and there will be an enhanced cash conversion option where taxpayers can opt to receive, in lieu of tax deduction benefits, a cash payout of 30% of the first SGD100,000 of qualifying expenditure, up to a maximum of SGD30,000.

OECD publishes comments on draft implementation package: Possible improvements to procedures for tax relief for cross-border investors

On 2010, the OECD released for public comments a draft implementation package for a streamlined procedure for portfolio investors to claim reductions in withholding rates pursuant to tax treaties or domestic law in the source country. The comments received on this draft implementation package were published on the OECD website on 16 September 2010.

OECD Global Forum issues phase I peer reviews for 8 countries

On September 2010, the OECD Global Forum on Exchange of Information for Tax Purposes and Transparency issued phase one peer reviews covering the legal and regulatory frameworks for transparency and exchange of tax information in Bermuda, Botswana, Cayman Islands,Jamaica, India, Monaco, Panama and Qatar.
The reports describe each jurisdiction’s rules for ensuring that information is available, how it can be accessed by competent authorities and the mechanisms in place to exchange the information with foreign tax authorities. The deficiencies identified commonly related to access to information including information on trusts, nominees and the need to maintain good accounting records. A second stage of the reviews, examining the eight countries’ exchange of information practices, will take place by 2012. The reports include recommendations on how these jurisdictions can improve their co-operation in international tax matters.
The OECD Global Forum now comprises more than 100 jurisdictions and observers. All these jurisdictions, as well as others identified by the Global Forum as relevant to its work, are participating in reviews of their systems for the international exchange of information in tax matters.

OECD publishes comments on future project on the transfer pricing aspects of intangibles

On 2010, the OECD invited stakeholders to comment on the scoping of a project on the trans¬fer pricing aspects of intangibles due to start in 2011. On 23 September, the OECD published the comments received on its website. These will be discussed by the OECD Working Party No.6 at its November 2010 meeting.

Tratamiento tributario de las localizaciones inmuebles en argentina

En esta oportunidad se procederá a exponer el tratamiento tributario de la locación de inmuebles en el Impuesto a las Ganancias para residentes del país.

Rentas de Inmuebles

1. Renta de la primera categoría. Renta del suelo

Dentro de la estructura general del Impuesto a las Ganancias, las rentas objeto de imposición se encuentran clasificadas en cuatro categorías, encontrándose las rentas de inmuebles tipificadas como "ganancias de primera categoría" o "rentas del suelo".

Las rentas del suelo son aquellas obtenidas como consecuencia del goce económico de bienes inmuebles y conceptos vinculados. Cabe aclarar que categorizan como rentas de la primera categoría en tanto no sean obtenidas por sujetos que deban encuadrarlas como ganancias de la tercera categoría (sociedades de capital y cualquier otro tipo de sociedades o empresas).

2. Criterios de imputación

Para cada una de las categorías en las que se clasifican las rentas, la ley del Impuesto a las Ganancias (LIG) ha previsto un criterio general de imputación al año fiscal.

_ Las rentas de la primera categoría se imputan por el método de lo devengado, conforme lo dispone el artículo 18 de la LIG.

_ Las rentas que por su naturaleza deben encuadrarse en la citada categoría, pasan a estar incluidas en la tercera categoría, cuando son obtenidas por sujetos empresa enunciados en el artículo 49 de la LIG.

_ Dado que los sujetos empresa también imputan sus rentas por el método de lo devengado, puede concluirse que las rentas del suelo se declaran en todos los casos por el método de lo devengado.

_ Asimismo el artículo 18 de la LIG prevé que el mismo criterio se aplicará correlativamente para la imputación de los gastos.

Rentas comprendidas

Enumeración de las rentas de primera categoría

Las rentas que se enumeran de conformidad con el artículo 41 de la Ley de Impuesto a las Ganancias, en tanto no corresponda incluirlas en el artículo 49 de la ley (ganancias de la tercera categoría), constituyen ganancias de la primera categoría, y deben ser declaradas por el propietario de los bienes raíces respectivos.

La LIG en su artículo 41 realiza una enunciación de las rentas que quedan comprendidas circunscribiendo el desarrollo del presente a las que se exponen a continuación:

_ El producido en dinero o en especie de la locación de inmuebles urbanos y rurales1.

_ El valor locativo computable por los inmuebles que sus propietarios ocupen para recreo, veraneo u otros fines semejantes.

_ El valor locativo o arrendamiento presunto de inmuebles cedidos gratuitamente o a un precio no determinado3.

Los dos últimos casos de la enunciación que antecede corresponden a las rentas denominadas fictas o presuntas que la propia ley evalúa en base al valor locativo de los inmuebles respectivos.

OECD Forum on Tax Administration discusses actions to address International Compliance and taxpayer service

On mid September 2010, the OECD Forum on Tax Administration met to discuss a range of issues asso­ciated with administering tax systems in the current climate. According to the tax commissioners, major improvements in taxpayer compliance could be ob­tained through:

- Sound corporate governance practices that address tax risk assessment and management by corporate boards;

- Building on recent advances in international co-operation and strengthening opportunities to share information which will improve offshore compliance .

- Joint audits by two or more revenue bodies exami­ning corporate and individual taxpayers with a global footprint, to boost International tax compliance and reduce costs for taxpayers and revenue bodies;

The commissioners reaffirmed their commitment to improving service to taxpayers, in particular, to ba­lancing the need for speed and integrity in making tax repayments or credits and the desire to continue constructive dialogues with key stakeholders. Partici­pants also discussed reports on approaches to tax risks in the banking sector. They also reconfirmed their commitment to support Tax Administration in developing and emerging econo­mies, in particular in relation to compliance.