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Hwee Lin: What
effect will the one-tier corporate tax system have on listed companies'
dividend payouts to shareholders?
Jacinta Loi: From
the individual shareholder's perspective, the change to a one-tier
corporate tax system would generally impact the individual's ability
to claim a refund of tax deducted at source if the dividend is taxable
and the individual 's marginal tax rate is lower than the corporate
tax rate. This is because, under the one-tier corporate tax system,
all Singapore dividends are exempt and no tax refund will be applicable.
The impact on corporate shareholders will be
varied depending on each company's current tax position. However,
the one-tier corporate tax system is meant to potentially reduce
the cost of compliance and administration for companies.
CC Lim: Would
Singaporens who work overseas qualify for the "Not Ordinarily
Resident" taxpayer class or is that just for expatriates?
Jacinta Loi: The
"Not Ordinarily Resident" (NOR) Taxpayer Scheme is not
restricted to expatriates only. As long as an individual meets the
criteria set out by the scheme, he/she may qualify for the benefits
accorded to an NOR. In particular, one of the conditions states
that
the individual must not have been a Singapore tax resident in the
3 years of
assessment before the year he first qualifies for the NOR scheme.
Hence, for Singaporeans working overseas, this requires
them to have filed their
Singapore income tax returns as non-residents for at least three
years prior to returning to Singapore.
Ashley: Regarding
the extension of procreation tax rebates to divorcees, can divorcees
claim the rebates if they have already been terminated?
Jacinta Loi: Divorcees
whose procreation tax rebates have already been terminated may apply
to IRAS for reinstatement of their rebates if their claim periods
have not expired.
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