Singapore

2025 Budget

The 2025 Budget was announced on 18 February 2025.

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 2024 (year of assessment 2025).
• New tax incentives to strengthen the development of Singapore equities markets:
  
  • Corporate income tax rebate of up to SGD 6 million per year of assessment for new company and business trust listings in Singapore.
  • Enhanced concessionary tax rate of 5% for newly listed fund managers in Singapore.
  • Tax exemption on fund managers’ qualifying income arising from funds which invest substantially in Singapore-listed equities.
• Allowing tax deductions for employee equity-based remuneration schemes where new shares are issued to fulfil plan obligations.
• Tax deduction for payments under approved cost-sharing agreements for collaborative innovation activities.
• Enhancement of the rules providing upfront certainty of non-taxation of gains on disposal of shares by companies to cover the disposal of preference shares which are accounted for as equity and to allow group ownership of the shares to be counted towards the minimum ownership threshold.
• Refinement of the tax incentives for land intensification, and the real estate, financial, insurance and maritime sectors.
• Extension of the tax incentives for internationalisation and mergers and acquisitions.

Other tax changes include:

• 60% personal income tax (PIT) rebate for resident individuals, capped at SGD 200 per taxpayer, for income year 2024 (year of assessment 2025).

For details of the 2025 Budget proposals, refer to our 2025 Budget Commentary at www.pwc.com/sg/en/publications/singapore-budget/commentary.html.