Singapore

2023 Budget

The 2023 Budget was announced on 14 February 2023. Corporate tax changes proposed include:

• Introduction of a new Enterprise Innovation Scheme
• Intention to implement Global Anti-base Erosion rules and domestic top-up tax for financial year starting on or after 1 January 2025, subject to international developments
• Enhancement of the double tax deduction for internationalisation scheme
• Option to claim accelerated capital allowances over two years for assets acquired in the financial year ending 2023 (year of assessment 2024)
• Option to claim an accelerated deduction in one year for renovation and refurbishment expenditure incurred in the financial year ending 2023 (year of assessment 2024)
• Extension of the following schemes:
  
  • pioneer incentive
  • development and expansion incentive
  • investment allowance and 100% investment allowance for automation projects
  • intellectual property development incentive
  • Insurance Business Development - Insurance Broking Business
  • tax exemption on income derived by primary dealers from trading in Singapore Government Securities
  • tax concession allowing banks and qualifying finance companies to deduct general provisions for doubtful debts and regulatory loss allowances made in respect of non-credit-impaired financial instruments
• Extension and rationalisation of the qualifying debt securities scheme
• Extension and refinement of the Financial Sector Incentive and the tax incentive for approved special purpose vehicles engaged in asset securitisation transactions including the introduction of a new sub-scheme to support covered bonds (as defined)
• Extension of the withholding tax exemption, writing down allowance and investment allowance relating to submarine cable systems
• Extension of the enhanced tax deduction for qualifying donations, extension and enhancement of the Corporate Volunteer Scheme and introduction of a philanthropy tax incentive for qualifying donors with family offices operating in Singapore

Other tax changes include:

• Changes to the tax reliefs available to working mothers with qualifying children who are Singapore citizens from year of assessment 2025, including the withdrawal of the foreign domestic worker levy relief and enhancement of the grandparent caregiver relief
• Increase in the Buyer’s Stamp Duty (BSD) rates for higher-value residential properties and non-residential properties
• Increase in excise duties for all tobacco products

For details of the 2023 Budget proposals, refer to our 2023 Budget Commentary at www.pwc.com/sg/en/tax/singapore-budget-2023/commentary.html.