Singapore's Ministry of Finance is consulting on the proposed Finance (Income Taxes) Bill 2026, which sets out 20 amendments to the Income Tax Act 1947 and two amendments to the Multinational Enterprise (Minimum Tax) Act 2024, covering Budget 2026 tax measures, periodic system updates, and Pillar Two compliance changes. Feedback is open until 1 July 2026.
Singapore’s Ministry of Finance is seeking public feedback from 8 June to 1 July 2026 on the proposed Finance (Income Taxes) Bill 2026.
The Bill proposes 20 amendments to the Income Tax Act 1947 (ITA) and two amendments to the Multinational Enterprise (Minimum Tax) Act 2024 (“MMTA”) to effect:
- Tax measures announced at Budget 2026 (ten ITA amendments)
- Changes arising from MOF’s periodic review of Singapore’s income tax system (ten ITA amendments)
- Changes related to the Pillar Two Global Anti-Base Erosion Model Rules (two MMTA amendments)
Scope of the consultation
Proposed amendments to the ITA
There are ten amendments to give legislative effect to tax measures announced at Budget 2026. They include:
- Enterprise Innovation Scheme: To support businesses in adopting Artificial Intelligence (AI), the Enterprise Innovation Scheme will be enhanced for years of assessment 2027 and 2028. Businesses will be allowed to claim tax deductions of 400% on up to SGD 50,000 of qualifying AI expenditures incurred for each year of assessment. The Sectoral AI Centre of Excellence for Manufacturing will also be added as a partner institution for qualifying innovation projects, for which businesses are eligible for a 400% tax deduction on qualifying expenditures incurred.
- 250% tax deduction for qualifying donations: To continue supporting a culture of giving in Singapore, the 250% tax deduction scheme will be extended by three years until 31 December 2029.
- Corporate Income Tax Rebate: To provide support for companies to manage cost pressures, a Corporate Income Tax Rebate of 50% of the corporate tax payable will be provided in the year of assessment 2026. Active companies that have employed at least one local employee in calendar year 2025 will receive a minimum benefit of SGD 2,000 in the form of a Corporate Income Tax Rebate Cash Grant. The total maximum benefit that a company may receive is SGD 40,000.
- The ten remaining amendments arise from MOF’s periodic review of Singapore’s income tax system. These include introducing a broad-based Fixed Expense Deduction Ratio for self-employed persons and individual sole proprietors, as well as requiring companies to use IRAS’ e-service to file objections and revisions to their tax assessments.
Proposed amendments to the MMTA
The two amendments are to implement:
(i) the Side-by-Side Safe Harbour under the Side-by-Side package approved by the OECD Inclusive Framework on Base Erosion and Profit Shifting in January 2026; and
(ii) the Global Anti-Base Erosion information return exchange framework.
These amendments ensure that our Pillar Two regime meets international standards and ease the compliance burden for multinational enterprise groups.
Submission of feedback
The consultation documents, including the proposed Finance (Income Taxes) Bill 2026, are available on the Ministry of Finance website and the REACH consultation portal.
Interested parties are invited to submit comments using the provided template by 1 July 2026.
