Deloitte Singapore: Boost Business Resilience through Streamlined Tax Policies
To enhance business resilience in an increasingly complex global landscape, Deloitte Singapore has proposed key adjustments to the nation’s fiscal strategy for the upcoming Budget 2025. The recommendations aim to provide businesses with greater clarity and flexibility.
A central point of Deloitte’s proposal is the call to ease restrictions on the sale of shares in property-holding companies. Currently, stringent rules, such as a 60-month period without property development required before a sale, are seen as hindering strategic business decisions. Deloitte argues that simplifying these requirements would allow companies to restructure assets, manage resources, and redeploy capital more efficiently, especially when the property serves as an operational asset rather than one for trade.
Rohan Solapurkar, Business Tax Leader at Deloitte Singapore, emphasized the need to fine-tune tax policies to support businesses through economic uncertainty. Further recommendations include:
Clarifying tax rules, particularly for the deductibility of carbon offset costs.
Revisiting and amending the conditions for tax allowances related to mergers and acquisitions (M&A).
Increasing the cap on deductions for medical expenses.
Addressing challenges within foreign tax credit rules.
According to Deloitte, these proposed changes would offer businesses much-needed flexibility and certainty, ultimately strengthening their ability to adapt and thrive.
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