We summarised the key proposed tax changes announced during the Budget Statement for Financial Year 2021 that may be relevant to businesses as follows.

1. Extend the Year of Assessment (YA) 2020 enhancements to the carry-back relief scheme
2. Extend the option to accelerate:
   (i) the write-off of cost of acquiring plant and machinery (P&M), and
   (ii) the deduction of expenses incurred on renovation and refurbishment (R&R)
3. Enhancement of Double Tax Deduction for Internationalisation (DTDi) Scheme
4. Extension of 250% tax deduction for qualifying donations made to Institutions of Public Character (IPCs)
5. Extension of the Business and IPC Partnership Scheme (BIPS)
6. Extend the Not-for-Profit Organisation (NPO) tax incentive
7. Allow the Automation Support Package (ASP) to lapse, but retain the 100% Investment Allowance (IA) scheme to support automation
8. Extend and enhance the Investment Allowance (Energy Efficiency) (IA-EE) Scheme
9. Withdraw the Accelerated Depreciation Allowances for Highly Efficient Pollution Control Equipment (ADA-PCE) Scheme
10. Goods and Services Tax (GST) on imported low-value goods and non-digital services
11. Updates to the zero-rating provision for media sales
12. Extend and refine the double tax deduction (DTD) for qualifying upfront costs attributable to retail bonds under MAS’ Seasoning Framework and Exempt Bond Issuer Framework
13. Extend and rationalise the withholding tax (WHT) exemptions for the financial sector
14. Extend the WHT exemption on payments made for structured products and over-the counter (OTC) financial derivatives
15. Allow the Insurance Business Development-Specialised Insurance (IBD-SI) scheme to lapse after 31 August 2021

For the full details, please download our budget commentary.