Recently, the Minister of Finance presented the 2022 budget to Parliament. The main corporate tax proposals are summarized below:
- The Ministry of Finance is introduced a minimum effective tax rate of 15% for multinational enterprise groups (MNE) with an annual turnover of at least EUR 750 million.
- Withholding tax exemption on the certain types of payments will be extended to 31 December 2026.
- The reduced 10% tax rate on qualifying income derived by an approved infrastructure trustee manager or fund management company from the management of qualifying SGX-listed business trusts or infrastructure funds in respect of qualifying infrastructure projects or assets (ITMFM Rule) is eliminated after 31 December 2022, but an ITMFM program recipient may continue to enjoy the tax benefits for the remainder of the term of their existing award.
- The carbon tax rate will be progressively increased from 2024 onwards, with a view to reaching SGD 50 to SGD 80 per tonne by 2030. To support businesses, a transition framework will be introduced to provide companies with allowances for a share of their emissions.
- From January 2023, the goods and services tax will increase from 7% to 8% and further 9% from January 2024. The government will continue to apply the GST to publicly subsidized health care and education.
