Tax Write-Up: PwC Singapore calls for tax breaks on Covid-19 business spend in Budget 2021

PwC Singapore... - PwC Office Photo | Glassdoor.sg

By: Javin Chan, Winston Neo, Edward Goh (Research and Training Department)

In this month’s publication, we refer to an article by The Business Times on PwC’s call for tax incentives to help Singapore cope with the Covid-19 pandemic.

PwC suggests that the Singapore tax rules could be tweaked in the next national budget to cover pandemic-related spending and business needs. Covid-19 has caused organizations to rethink how they conduct business and Budget 2021 should build on earlier efforts.

PwC suggested measures to help the hospitality and emerging sectors among other tax reliefs that could help businesses digitalize due to the need to hold virtual events in the current situation. Some of these recommendations include a GST refund schemes for tourists to boost demand in the hospitality sector as well as enhanced tax deductions or capital allowances for cybersecurity investments. Tax reliefs could also be granted in priority areas like data analytics or staff training, double tax deductions for virtual trade events, and removing the cap on companies’ tax deduction for employee medical benefits.

However, the Budget has to provide a balance in supporting sustainable transformation while increase needed government tax revenue in an overarching purpose of growing Singapore’s economy.

Article Link:https://www.businesstimes.com.sg/government-economy/pwc-singapore-calls-for-tax-breaks-on-covid-19-business-spend-in-budget-2021

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