LIBERALISATION OF INCOME TAX ASSESSMENTS AND COLLECTION FROM FOREIGN ARTISTES

Mr Yeoh Ghim Seng asked the Minister for Finance (a) what was the amount and percentage of income tax collected in 1966 from foreign artistes; (b) if he is aware that the present income-tax assessments of foreign artistes and the mode of collection are discouraging talented overseas musicians, dancers and actors from performing in Singapore; and (c) as the performances of such artistes can be a means of fostering the progress of the performing arts in Singapore, if he will consider liberalising the allowances and modes of assessment and collection of income tax from foreign artistes as an incentive to talented overseas performers to come to perform in Singapore.

Dr Goh Keng Swee: Sir, this is a question in three parts, and my answers are as follows:-

(a) Approximately $205,000 were collected in income tax from foreign artistes in 1966. This works out to 0.18 per cent of the total income tax collected during that year.

(b) I am not aware that the present income tax assessments of foreign artistes and the mode of collection are discouraging talented overseas musicians, dancers and actors from performing in Singapore. In 1965 there were 381 foreign artistes. In 1966 the number increased to 636, i.e., there was an increase of 67 per cent; and in the first 9 months of 1967 Singapore had 666 foreign artistes.

The system of collection is basically similar to that used by income tax authorities all over the world.

(c) I agree that the performance of talented artistes can be a means of fostering the progress of the performing arts in Singapore. Foreign artistes whose visits are financed by public funds of another country are exempt from tax. All artistes are given reasonable allowances for expenses as laid down in the law. These allowances include expenditure on make-up, hair-dos, costumes, laundry, accommodation, travel, and so on. Where the artistes are on a circuit, stopping at other places than Singapore, only a portion of their passage expenditure attributable to their performance in Singapore is allowed.

There is no evidence to suggest, and I am not convinced, that income tax is the crucial factor in determining the number of foreign artistes performing in Singapore. However, a Bill is being introduced to reduce the rate of income tax payable by non-residents deriving income from employment in Singapore, from 40 per cent to 15 per cent. This will apply to all persons taking up employment in Singapore for short periods. Artistes will benefit by this concession.