Singapore

Corporate - Significant developments

Last reviewed - 30 May 2024

2024 Budget

The 2024 Budget was announced on 16 February 2024. Corporate tax changes proposed include:

  • Corporate income tax (CIT) rebate of 50% and a CIT rebate cash grant of SGD 2,000 for eligible companies, subject to a combined (tax rebate and cash grant) cap of SGD 40,000 for income year 2023 (year of assessment 2024)
  • Implementation of the Income Inclusion Rule (IIR) and Domestic Top-up Tax (DTT) for in-scope businesses for financial years starting on or after 1 January 2025, but the undertaxed profits rule (UTPR) will only be considered at a later stage
  • Introduction of a new Refundable Investment Credit (RIC)
  • Introduction of additional concessionary tax rate tiers of 15% for the Global Trader Programme, Development and Expansion Incentive and Intellectual Property Development Incentive, and 10% for the Finance and Treasury Centre Incentive and the Aircraft Leasing Scheme
  • Introduction of an alternative net tonnage basis of tax for shipping enterprises under the Maritime Sector Incentive
  • Extension and enhancement to the tax incentives for asset and wealth management
  • Introduction of a new Overseas Humanitarian Assistance Tax Deduction Scheme (applicable from 1 January 2025 to 31 December 2028), which allows donors to deduct cash donations made through designated charities towards overseas emergency humanitarian assistance, subject to a cap
  • Enhancement of the tax deduction for renovation or refurbishment expenditure.

Other tax changes include:

  • 50% personal income tax rebate for resident individuals, capped at SGD 200, for income year 2023 (year of assessment 2024)
  • Progressive withdrawal of the tax concessions for royalty income derived by authors, composers, and choreographers
  • Increase in the annual income threshold for dependant-related reliefs from SGD 4,000 to SGD 8,000, with effect from the year of assessment 2025
  • Withdrawal of course fees relief from year of assessment 2026
  • Withdrawal of CPF Cash Top-Up Relief for CPF top-ups that attract matching grants under the Matched Retirement Savings Scheme
  • Revision to the Additional Buyer’s Stamp Duty (ABSD) remission clawback rates for housing developers
  • New ABSD concession for single seniors who are Singapore citizens
  • Revision to the Annual Value bands for owner-occupied residential property tax rates from 1 January 2025.

For details of the 2024 Budget proposals, refer to our 2024 Budget Commentary at www.pwc.com/sg/en/publications/singapore-budget/commentary.html.