Singapore: Budget 2024 — key tax updates

In brief

Singapore Budget 2024 seeks to provide a roadmap for Singapore's way forward in light of the uncertain global geopolitical and macroeconomic environment. 

Singapore has affirmed its plan to implement the Income Inclusion Rule (IIR) and domestic top-up tax (DTT) under Pillar 2 of the Base Erosion and Profit Shifting (BEPS) 2.0 initiative from 2025, in view of similar steps taken by major jurisdictions and those in the region. The announcement of related measures, including the introduction of a new Refundable Investment Credit (RIC) scheme and new tiers for various concessionary tax rate incentives, also appears to be strategically timed to soften the impact for businesses. Other tax measures, including enhanced support for businesses and support for the asset and wealth management industry, were also announced.

We highlight the key tax developments from Budget 2024 below.


Key takeaways

  • Singapore will implement the IIR and DTT under Pillar 2 from businesses' financial years starting on or after 1 January 2025, while reserving its position on the Undertaxed Profits Rule (UTPR) at this time. 
  • A new RIC scheme will be introduced, consistent with the Global Anti-Base Erosion (GloBE) Rules for Qualifying Refundable Tax Credits (QRTCs), which is to be offset against the corporate income tax (CIT) payable by a company and refunded in cash within four years from when the conditions for receiving the credits are met.
  • New tiers for various concessionary tax rate incentives will be available from 17 February 2024. These will allow a wider range of companies to access these tax benefits and have more room to rightsize their investments in Singapore in proportion to the benefits that they expect to reap.
  • The fund tax incentive schemes have been extended until 31 December 2029. Section 13O will extend to Singapore limited partnerships (LPs), and the economic criteria of the schemes will be revised with effect from 1 January 2025.
  • The government has also introduced various schemes providing support for businesses, including a new CIT Rebate for year of assessment (YA) 2024 and a CIT Rebate Cash Grant, enhanced Energy Efficiency Grant (EEG), enhanced tax deductions for renovation or refurbishment expenditure, and revisions to Additional Buyer's Stamp Duty (ABSD) remission clawback rates for housing developers.

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