Singapore

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 2,000 Singapore dollars (SGD) 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:

• Revision to the Additional Buyer’s Stamp Duty (ABSD) remission clawback rates for housing developers.

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