Singapore Tax System & Taxation Services Overview
Taxes are used to develop Singapore into a stronger community, a better environment and a more vibrant economy, a place that Singaporeans can be proud to call home. Taxes are meant for nation building.
OVERVIEW Of THE BUDGET 2015
FY 2015 expects a basic deficit of $9.6 billion (2.4 of GDP). After factoring top-ups of $6 billion in Endowment and Trust Funds AND $8.9 billion in NIRC, the overall deficit is estimated to be $6.7 billion or at 1.7%of GDP for the FY2015.
This estimated deficit includes $6 billion set aside for future investment and $3 billion as the Changi Airport Development Fund and top-ups for the National Productivity Fund, the National Research Fund, and the Special Employment Credit Fund. Upon excluding these top-ups to the funds, the overall budget 2015 is close to balance.
Fiscal Policy 2015
The Singapore Budget presented on 23 February 2015 outlined the long-term objectives of budgetary policies
Building the Future
The Budget 2015 is focused on creating and building a better future of Singapore. Ensuring development of a society that is fair and just, Singapore have to reach the next frontier as a successful economy. Complementing a culture of personal effort and responsibility, Singaporeans must understand the value of collective responsibility especially for the elderly. The government has given impetus to strengthen small and medium scale new companies in Singapore. To achieve this vision the Singapore Budget 2015 initiates four major steps
- Investing in the skills of future and empowering every individual to learn and develop throughout life
- Restructuring the economy and supporting the next generation of business success by promoting innovation and internationalization.
- Investing in economic and social infrastructure for the future so as to create new competitive strengths, livable homes and quality healthcare for Singaporeans.
- Strengthening assurance in retirement by complementing Pioneer Generation Package and other social policy shifts in the last few years. Besides, offer enhanced support to the middle-income families.
Government Operating Revenues
- For the FY 2015 Operating Revenue is estimated at $64.27 billion. Compared to the revised FY 2014 estimate there is actually an increase of $2.92 billion or 4.8%. This increase is supposedly due to the increase in motor vehicle-related revenues.
- Compared to the revised FY2014 estimate, the projected collection of Corporate Income Tax is at $13.48 billion, an increase of $0.02 billion or 0.1%.
- On the contrary, the collection of Personal Income Tax shows decreased figures of $8.91 billion, a decrease of about $0.03 billion or 0.3%, over the Revised FY2014 estimate.
- Although it is forecasted that the Asset Taxes will remain same as that of the Revised FY2014 estimate of $4.41 billion, an estimated drop of $2.60 billion, a decrease of $0.20 billion or 7.0% is expected in the Stamp Duty collections for the FY 2015 as compared to the Revised FY2014 estimate.
- Over revised FY 2014 estimate, the collection of Goods and Service Tax is expected to increase by 0.38 billion or at the rate 3.7%.
- Motor Vehicle Taxes are estimated to set the gross record collection at $2.12 billion, an increase of $0.31 billion or 17.0% over the Revised FY2014 estimate.
- FY2015 Vehicle Quota Premiums are projected at $5.08 billion, an increase of $1.42 billion or 38.7% over the Revised FY2014 estimate.
- Other Taxes, which include the Foreign Worker Levy, Water Conservation Tax, Development Charge and Annual Tonnage Tax, are expected at $6.11 billion, a decrease of $0.03 billion or 0.4% over the Revised FY2014 estimate.
IRAS is responsible for collecting income tax, property tax, goods & services tax, estate duty (for deaths occurring before 15 Feb 2008), betting taxes and stamp duty through taxation Singapore.