Tuesday, 30 April 2013

Tax exemption for income from childcare centre

Income Tax (Exemption) Order 2013 [PU (A) 3/2013]

Salient points
  • Provision and maintenance of child care centre registered with the Department of Social Welfare under the Child Care Centre Act 1984
  • The exemption of statutory income (after the deduction of all allowances) is for a period of five consecutive years of assessment (YA) commencing from YA 2013 for existing child care centres or first invoice issued for child care centres commencing operations from YA 2013

Wednesday, 24 April 2013

Industrial Building Allowance Claim for Kindergartens

Income Tax (Industrial Building Allowance) (Kindergarten) Rules 2013

Salient points
  • Effective from the year of assessment 2013
  • Individuals or companies carrying on a business relating to the provision and maintenance of kindergarten registered with the Ministry of Education
  • Construction or purchase of a building used as a kindergarten
  • Claimant must be the owner of the building and used by the claimant as kindergarten
  • Industrial Building Allowance - 10% per year of assessment
  • If less than 10% of the building was not used as a kindergarten, claimant is allowed to treat the whole building as qualifying building expenditure
  • Claw back provision applies if the building is disposed within 2 years

Monday, 22 April 2013

IRB issued new public ruling on Accelerated Capital Allowances 4/2013