Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong, handed down the 2024 Budget Statement at 3:30 pm on 16 February 2024.
The Budget contains various tax measures to pursue better growth and jobs, equip workers for life, forge a stronger and more united nation and secure Singapore’s fiscal position.
Singapore will also implement 2 components from Pillar Two of the international initiative Base Erosion and Profit Shifting 2.0, namely the Income Inclusion Rule (IIR) and the Domestic Top-up Tax (DTT). The IIR and DTT will take effect for businesses’ financial years starting on or after 1 January 2025.
The full Budget Statement is available at mof.gov.sg/singaporebudget and the Ministry of Finance’s media release is available at mof.gov.sg/singaporebudget/media-centre/media-releases.
The tax highlights are set out below.
Business tax
- Corporate Income Tax Rebate and Cash Grant will be granted to companies for year of assessment 2024.
- The scope of qualifying expenditure for tax deduction for renovation or refurbishment expenditure will be expanded from year of assessment 2025.
- Singapore will implement the Income Inclusion Rule and a Domestic Top-up Tax from Pillar Two of the Base Erosion and Profit Shifting 2.0 Initiative from 2025.
Personal tax
- A Personal Income Tax Rebate will be granted to all tax resident individuals for year of assessment 2024.
- The annual income threshold of dependants or caregivers will be increased for claims for dependant-related reliefs from year of assessment 2025.
- The Course Fees Relief will be allowed to lapse with effect from year of assessment 2026.
- From year of assessment 2026, cash top-ups made on or after 1 January 2025 to the Retirement Account that attract the Matched Retirement Savings Scheme matching grant will no longer entitle the giver to the Central Provident Fund Cash Top-up Relief.
- The tax concession on royalty income derived by authors, composers and choreographers will be withdrawn in phases with effect from year of assessment 2027.
Tax incentives
- Singapore will introduce the Refundable Investment Credit scheme, which is consistent with the Global Anti-Base Erosion Rules for Qualified Refundable Tax Credits.
- The tax incentive schemes for funds managed by Singapore-based fund managers (Qualifying Funds) will be revised and extended until 31 December 2029.
- An alternative basis of tax where the qualifying income of qualifying shipping entities is taxed by reference to the net tonnage of their ships will be available under the Maritime Sector Incentive (MSI)-Shipping Enterprise (Singapore Registry of Ships), MSI-Approved International Shipping Enterprise and MSI-Maritime Leasing (Ship) from year of assessment 2024.
- An additional concessionary tax rate tier of 10% will be introduced under the Finance and Treasury Centre incentive with effect from 17 February 2024.
- An additional concessionary tax rate tier of 10% will be introduced under the Aircraft Leasing Scheme with effect from 17 February 2024.
- An additional concessionary tax rate tier of 15% will be introduced under the Development and Expansion Incentive with effect from 17 February 2024.
- An additional concessionary tax rate tier of 15% will be introduced under the Intellectual Property Development Incentive with effect from 17 February 2024.
- An additional concessionary tax rate tier of 15% will be introduced under the Global Trader Programme with effect from 17 February 2024.
- The Overseas Humanitarian Assistance Tax Deduction Scheme will be piloted from 1 January 2025 to 31 December 2028.
Other tax
- With effect from 16 February 2024, housing developers will be subject to a lower Additional Buyer’s Stamp Duty remission clawback rate on projects with at least 90% of units sold at the 5-year sale timeline.
- The Annual Value bands of the owner-occupier residential property tax rates will be adjusted from 1 January 2025.
- Property owners who are retirees can enjoy a 24-month interest-free GIRO instalment payment plan (Extended GIRO Scheme for Residential Property (Retirees)) for property tax bills for 2024 onwards.
- The Additional Buyer’s Stamp Duty concession will be extended to single Singapore citizen seniors aged 55 and above.
Register to access the full Wolters Kluwer Tax & Accounting Report, including:
- Additional information on the tax incentive schemes for funds managed by Singapore-based fund managers (Qualifying Funds) which were scheduled to lapse on 31 December. 2024, will be extended until 31 December 2029.
- Detailed information on the revised owner-occupier residential property tax rates from 1 January 2025.
