Singapore has enacted two tax laws, Income Tax (Amendment) Act 2024 and Multinational Enterprise (Minimum Tax) Act 2024, with the aim to align with global tax standards, enhance business competitiveness, and introduce targeted incentives for investments and compliance with OECD’s Base Erosion and Profit Shifting (BEPS) 2.0 framework.

The laws were published in the Official Gazette on 27 November 2024.

The Income Tax (Amendment) Act 2024 includes measures such as a 50% Corporate Income Tax (CIT) rebate for the Year of Assessment (YA) 2024, capped at SGD 40,000. Companies meeting specific employment criteria will also receive a minimum cash payout of SGD 2,000.

The law enhances the Renovation and Refurbishment (R&R) Scheme, extends tax incentives for fund managers, and introduces the Refundable Investment Credit (RIC) to support investments in high-value sectors, Allows deductions of up to SGD 300000 for R&R expenses every three years.

The Multinational Enterprise (Minimum Tax) Act 2024 implements two taxes under BEPS Pillar Two: Domestic Top-up Tax (DTT) and Multinational Enterprise Top-up Tax (MTT). These taxes ensure that in-scope multinational enterprise (MNE) groups with annual revenues exceeding EUR 750 million are subject to a minimum effective tax rate of 15% in Singapore and abroad.

In-scope MNEs must comply with strict reporting and filing obligations, with penalties for non-compliance. The first assessments and payments under these rules will take effect for financial years starting on or after 1 January 2025.

Earlier, the Ministry of Finance (MOF) announced a public consultation on the proposed Multinational Enterprise (Minimum Tax) Bill and associated legislative amendments to the Income Tax Act 1947 (ITA) on 10 June 2024.