On 16 February 2024, Mr. Lawrence Wong, Deputy Prime Minister and Finance Minister, presented the Budget Statement for the year 2024 in Parliament. Some of its most significant Budget 2024 overview of tax measures are summarized below:

For Businesses:

  • Corporate Income Tax Rebate: A corporate income tax rebate of 50%, with a maximum limit of S$40,000 and a minimum cash payout set at S$2,000.
  • Refundable Investment Credit: The Refundable Investment Credit (RIC) supports 50% of qualifying expenditures in high-value economic activities for 10 years, covering costs like capital, manpower, and logistics. Credits offset Corporate Income Tax (CIT) and any unused credits are cash-refunded within four years. RIC is awarded case-by-case, with detailed information expected from EDB and Enterprise SG by 3Q 2024, aligning with GloBE Rules for Qualified Refundable Tax Credits.
  • Pillar Two of BEPS 2.0: Singapore will introduce new tax rules targeting large multinational enterprises (MNEs) exceeding €750 million in annual revenue starting from 2025. The Income Inclusion Rule (IIR) taxes profits of foreign subsidiaries of Singapore-headquartered MNEs if taxed below a minimum rate. The Domestic Top-up Tax (DTT) applies to all qualifying MNE groups, taxing profits of their Singapore subsidiaries below the minimum rate.
  • Extended and Revised Fund Management Incentives: Singapore has extended its tax incentive scheme for qualifying funds, including exemptions from withholding tax and Goods and Services Tax (GST), until 31 December 2029.
  • Enhanced Renovation/Refurbishment Deduction: Includes designer fees, a fixed 3-year period, and the option to claim in one year. Details by 3Q 2024.

For Individuals:

  • Personal Income Tax Rebate: A 50% Personal Income Tax (PIT) rebate for the year of assessment 2024 will be provided to all tax-resident individuals. The rebate is capped at $200 per taxpayer, aiming to primarily benefit middle-income workers. Additionally, there are other unspecified tax changes.
  • Overseas Humanitarian Assistance Tax Deduction Scheme (Pilot): 100% deduction for qualifying cash donations through designated charities (2025–2028).