Budget Speech
ANNEX F: Overseas Talent Recruitment
Under the Double Tax Deduction (DTD) for Overseas Talent Recruitment
Scheme introduced in 1998, employers can claim DTD for:
(a) recruitment and relocation costs incurred in hiring
P1 talent from abroad;
(b) relocation costs for hiring P2 talent from abroad;
and
(c) recruitment and relocation costs for hiring returning
Singapore citizens and permanent residents of standing equivalent
to P employment pass holders.
The amount of DTD that employers can claim has
been enhanced to take into account expenses that employers may incur
in relocating the employees’ family members to Singapore. The
current and revised caps are shown in the table below.
| Description |
P1
Employment Pass |
P2
Employment Pass |
| Current
Cap |
Revised
Cap |
Current
Cap |
Revised
Cap |
| Relocation expenses for employee |
$15,000
(includes recruitment expenses) |
$15,000
(includes recruitment expenses) |
$5,000 |
$5,000 |
| Relocation expenses for spouse |
$5,000 |
$5,000 |
| Relocation expenses for unmaried children under
the age of 21 |
$2,500 per child (maximum of 2
children) |
$2,500 per child (maximum of 2
children) |
| Total cap per employee |
$15,000 |
S25,000 |
$5,000 |
$15,000 |
The total deduction an employer can claim for
qualifying expenses incurred has been revised from $150,000 to $275,000.
The revised caps apply to qualifying expenses
incurred on or after 28 February 2003.
|
