Following good news for Singaporeans, the $1.1 billion Bicentennial Bonus handout, Mr Heng announced that the Government will introduce a 50% personal income tax rebate for FY2019, subject to a cap of $200.
The cap is set at $200 so that middle-income earners will stand to benefit more.
Those with an annual income under $22,000 won’t need to pay taxes.
Last year, the speech addressed the enhancement and extension of the Corporate Income Tax (CIT) rebate to YA2019 which would cost the Government $475 million in two years.
For the YA2018, CIT rebate was raised to 40% of tax payable, capped at $15,000. For the YA2019, CIT rebate is at a rate of 20% of tax payable, capped at $10,000.
The CIT rebates should benefit all tax-paying companies, especially smaller ones, according to last year’s budget.
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