4 things you may have missed about Budget 2019

SINGAPORE — Budget 2019, like many Budgets before it, contained a long list of measures to provide support to Singaporean households and workers, help companies be more productive and innovative, and encourage citizens to be more caring and giving to one another.

While blockbuster announcements such as the Merdeka Generation Package and the Bicentennial Bonus are likely to dominate conversations around the office water cooler, there was also a slew of other small tweaks and new initiatives that may have missed your attention.

Here are four:

1. Lapse of the Not Ordinarily Resident (NOR) scheme

The NOR scheme was first introduced in 2002 to encourage foreign talent to relocate to Singapore by providing them with tax concessions.

The Ministry of Finance (MOF) has said that the last year for the NOR scheme will be in Year of Assessment (YA) 2020 — that is, for income earned this year. 

To qualify for the NOR scheme, individuals must be a non-resident for three consecutive YAs and must be a Singapore tax resident in the first year when he or she qualifies for the NOR status.

Currently, NOR claimants, which number about 3,600, only have to pay income tax on a time-apportionment basis. For instance, an NOR claimant will not be taxed in accordance with the number of days he or she spends outside of Singapore for business reasons.

The individual may also receive tax exemptions on the contributions made by his or her employer to any non-mandatory overseas pension fund or social security scheme.

Once the scheme lapses in YA 2020, it will not be renewed. This means that those who are granted NOR status in YA 2020 will see their status expire in YA 2024. 

These individuals may receive tax concessions under the NOR scheme up till YA 2024 so long as they continue to meet the conditions of the concessions.

2. Removal of child’s age as a criterion for Grandparent Caregiver Relief

The Grandparent Caregiver Relief provides up to S$3,000 of income tax relief to working mothers who rely on the help of their parents, parents-in-law, grandparents or grandparents-in-law to take care of their children. 

Currently, one of the conditions to qualify for the relief is that the child must be 12 years old or under.

However, to provide greater support and recognition to working mothers with handicapped and unmarried dependent children, the MOF announced that mothers can now claim for tax relief, regardless of the child’s age, from YA 2020 onwards.

3. Partnership between Youth Corps Singapore and institutes of higher learning

To encourage young people to continue volunteering even after they leave school, the Youth Corps Singapore, which encourages Singaporeans between 15 and 35 to volunteer, will partner with institutes of higher learning such as universities and polytechnics to develop young community leaders. 

These youths will undergo structured training to be equipped with skills to better lead and serve the community.

They will also have access to resources, networks and further development opportunities. 

The idea is to nurture youth community leaders in institutes of higher learning who can in turn rally their peers to be involved in the community even after they graduate.

4. Public Service Cares initiative

The Government will introduce the Public Service Cares initiative to encourage public officers to volunteer. 

Currently, each ministry has a senior officer who is appointed as a Giving Ambassador to champion volunteerism.

In addition, over 85 per cent of public officers donate to various causes each month. 

In his Budget speech, Finance Minister Heng Swee Keat said that with the launch of Public Service Cares, the Government will strengthen its capabilities in corporate service responsibility and “create larger-scale and sustained volunteering opportunities” for public officers. 

With the change, public officers may participate in house visits to share healthcare and active ageing schemes or guide seniors in using their mobile devices at digital clinics.

“This will also help public service officers to better understand citizens’ needs, and co-deliver services with the people and private sectors,” said Mr Heng.