2004 BUDGET: AT A GLANCE
 
 
 INCOME TAX

•  Corporate tax cut from 22% to 20% (cost: $800m)
•  Personal income tax cut deferred but goal still 20%

 WEALTH MANAGEMENT

•  Tax exemption for specified S'pore-sourced personal investment income from financial instruments
•   Tax exemption for all foreign-sourced personal income received in S'pore

 ENTREPRENEURSHIP

•  Start-ups: tax break for first $100,000 of taxable income for up to three yrs
•  Techno Invest Incentive extended to non-tech companies; renamed Enterprise Invest Incentive
• Public agencies to review all existing rules by 2005. Plan to review all rules every five years
• Withholding tax on royalties cut from 15% to 10%

 FINANCIAL INDUSTRY

• Concessionary 5% tax for approved companies providing high value-added processing services to financial institutions
•  Concessionary tax for special purpose vehicles involved in asset securitisation
•  5% tax on income from trading of commodity derivatives
•  Financial Sector Incentive Scheme extended to secondary loans trading
•  Qualifying Debt Securities scheme extended to discount income arising from QDS

 BUSINESSES

•  Regional HQ incentive extended from three to five yrs
•  Pioneer incentive extended from 10 to 15 yrs
•  Approved International Shipping Enterprise: All onshore charter income tax exempt from YA 2005

 LABOUR

•  Skilled work permit levy goes up from $30 to $50 on July 1
•  Construction worker levy also goes up to $50

 HEALTH, EDUCATION

•  General hospitals may charge patients according to their income
•  S class foreign worker pass to meet demand for middle-level skilled workers $50 to $200 Medisave top-up for those over 50 (cost: $104m)
•  Health Insurance to supplement Medisave
•  $100m more to be go into Medifund (cost: $100m)
•  Varsity fees: Status quo for this year, but students to bear bigger share of tuition costs in future

POPULATION

• 36,000 babies born last year, way below 50,000 needed for replacement
• More incentives for better-educated women to have children
• Open door policy for immigrants to be maintained
• Committee on falling birth rate to look at tax reliefs, maternity leave and affordability among other things. Results to be announced by Aug 9

CARS, LIQUOR, TOBACCO, ESTATE DUTY

• Car ownership: ARF cut from 130% to 110% of OMV
• Taxis: excise duty raised from 0% to 20% of OMV
• Liquor: higher tax for certain types, lower for beer/ale/sparkling wine
• Cigarettes: excise duty up from $255 per kg to $293 per kg
• Estate duty: No accrued interest on duty for six months from death