Corporate - Significant developments

Last reviewed - 27 March 2022

2022 Budget

The 2022 Budget was announced on 18 February 2022. Corporate tax changes proposed include:

  • Extension and rationalisation of project and infrastructure finance incentive schemes
  • Extension of the aircraft leasing incentive scheme
  • Extension of WHT exemptions for shipping and container leasing, certain financial transactions, and approved foreign loans
  • Extension and simplification of the Approved Royalties Incentive
  • Extension of the tax framework for corporate amalgamations to licensed insurers in Singapore
  • Extension of tax exemption for income of non-resident mediators and arbitrators till 31 March 2023, following which there will be a 10% WHT on gross income derived from Singapore (unless the non-resident elects for net basis taxation)

In response to the Global Anti-Base Erosion model rules (the GloBE rules) released by the Organisation for Economic Cooperation and Development (OECD)/G20 Inclusive Framework to address the Tax Challenges Arising from the Digitalisation of the Economy (Pillar Two), the government announced that it will consider introducing a 15% Minimum Effective Tax Rate (METR) regime for in-scope multinational groups.

Other tax changes include:

  • Increase in the GST rate from 7% to 8% on 1 January 2023 and a further increase to 9% on 1 January 2024
  • Increase in the top marginal PIT rate to 24% for resident individual taxpayers from year of assessment 2024. The tax rates for non-resident individual taxpayers will correspondingly be raised to 24%.
  • Significant increases in the carbon tax rate from 2024 to 2030
  • Increase in residential property tax rates and luxury car ownership taxes
  • Increase in the Central Provident Fund (CPF) contribution rates for workers aged above 55 to 70

For details of the 2022 Budget proposals, refer to our 2022 Budget Commentary at

For details of the increase in the GST rate, refer to our Tax Bulletin at


Tax governance

On 17 February 2022, the Inland Revenue Authority of Singapore (IRAS) launched two new initiatives, the Tax Governance Framework (TGF) and Tax Risk Management and Control Framework for Corporate Income Tax (CTRM). These voluntary initiatives are intended to promote the adoption of good tax governance principles and practices among corporate taxpayers.

Goods and Services Tax

The Goods and Services Tax (Amendment) Act 2021 was published on 10 December 2021. The key changes include levying GST on the following transactions with effect from 1 January 2023:

  • Extend the overseas vendor registration regime to tax (a) Business-to-Consumer (B2C) imported non-digital services and (b) B2C low-value goods (LVG) imported via air or post that are valued $400 or less
  • Extend the reverse charge regime to tax business-to-business LVG imported via air or post that are valued $400 or less

For details, refer to our Tax Bulletin at


Stamp duties

The government introduced measures from 16 December 2021 to cool the residential property market. These included increasing the additional buyer's stamp duty (ABSD) rates for Singaporeans and permanent residents purchasing their second and subsequent residential property, and for foreigners, entities and property developers purchasing any residential property. Additional conveyance duties (ACD) has correspondingly been increased for buyers of equity interest in property-holding entities (as defined).