Singapore, 13 February 2023 – With the Singapore Budget to be announced by Minister for Finance Lawrence Wong on 14 February 2023, Grant Thornton has published their suggestions to the Ministry of Finance for consideration in the upcoming Budget and beyond.
The recommendations fall into broad themes:
David Sandison, Singapore Practice Leader & Head of Tax at Grant Thornton says, “This Budget has got to be about steadying the ship. Inflation, increasing interest rates, global minimum taxes, major wars, supply chain disruptions, oil price volatility, imminent doom from carbon dioxide emissions and a tentative end to the most bizarre episode in human history are, between them, cooking up just the perfect storm.
“Time to find a quiet inlet, take stock and hunker down until the skies clear. Fortunately, we haven’t taken on much water and there are no holes in the side. So, we are in relatively good shape. It is for this reason that nothing radical is expected from this year’s Budget. It will be more about taking the next steps along the path of plan A which has already been clearly defined.”
One of the highlights in Grant Thornton’s suggestions is around strengthening Singapore’s environmental, social and governance (ESG) capabilities to support the city-state’s ambitions to be an ESG hub for the region and the world.
To encourage companies to do their ESG reporting in Singapore, they could be given enhanced or double deductions if the reporting is done locally. A reduced tax rate could also be considered for Singapore-based companies providing ESG reporting and advisory services.
Currently, tax deductions are not granted for some volunteering costs such as chartering buses or for charities that are not registered as an Institution of Public Character. Grant Thornton proposes allowing these to be deductible to further encourage businesses to undertake ESG activities.
With the rise in goods and services tax (GST) this year, Grant Thornton has also proposed to allow businesses to claim GST on ESG-related expenses such as ESG reporting or volunteering activities.
In addition to ESG-related expenses, another growing area of concern for businesses is the need to provide for employees’ mental wellness. Grant Thornton’s proposals also suggest providing businesses with a further deduction on mental health expenses, making mental wellness services more accessible to employees.
ENDS
The full PDF of Grant Thornton’s Budget recommendations can be downloaded at www.grantthornton.sg/budget-2023
Budget 2023
Grant Thornton provides suggestions for government to consider for Singapore Budget 2023 and beyond
13 Feb 2023
The professional services firm’s suggestions include ways to grow Singapore as an environmental, social and governance hub and strengthening support for mental wellness at the workplace.
Singapore, 13 February 2023 – With the Singapore Budget to be announced by Minister for Finance Lawrence Wong on 14 February 2023, Grant Thornton has published their suggestions to the Ministry of Finance for consideration in the upcoming Budget and beyond.
The recommendations fall into broad themes:
David Sandison, Singapore Practice Leader & Head of Tax at Grant Thornton says, “This Budget has got to be about steadying the ship. Inflation, increasing interest rates, global minimum taxes, major wars, supply chain disruptions, oil price volatility, imminent doom from carbon dioxide emissions and a tentative end to the most bizarre episode in human history are, between them, cooking up just the perfect storm.
“Time to find a quiet inlet, take stock and hunker down until the skies clear. Fortunately, we haven’t taken on much water and there are no holes in the side. So, we are in relatively good shape. It is for this reason that nothing radical is expected from this year’s Budget. It will be more about taking the next steps along the path of plan A which has already been clearly defined.”
One of the highlights in Grant Thornton’s suggestions is around strengthening Singapore’s environmental, social and governance (ESG) capabilities to support the city-state’s ambitions to be an ESG hub for the region and the world.
To encourage companies to do their ESG reporting in Singapore, they could be given enhanced or double deductions if the reporting is done locally. A reduced tax rate could also be considered for Singapore-based companies providing ESG reporting and advisory services.
Currently, tax deductions are not granted for some volunteering costs such as chartering buses or for charities that are not registered as an Institution of Public Character. Grant Thornton proposes allowing these to be deductible to further encourage businesses to undertake ESG activities.
With the rise in goods and services tax (GST) this year, Grant Thornton has also proposed to allow businesses to claim GST on ESG-related expenses such as ESG reporting or volunteering activities.
In addition to ESG-related expenses, another growing area of concern for businesses is the need to provide for employees’ mental wellness. Grant Thornton’s proposals also suggest providing businesses with a further deduction on mental health expenses, making mental wellness services more accessible to employees.
ENDS
Notes
The full PDF of Grant Thornton’s Budget recommendations can be downloaded at www.grantthornton.sg/budget-2023
Experts / Authors
David Sandison
David has over 30 years of international tax experience having practiced in the United Kingdom, Australia and Singapore. He has an impressively extensive range of clients across a vast number of industries.
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