Singapore enacts Income Tax (Refundable Investment Credits) Regulations 2025, introducing tax credits of up to 50% for qualifying business investments under Pillar 2 rules.
Singapore has published the Income Tax (Refundable Investment Credits) Regulations 2025, which came into force on 1 September 2025.
The regulations establish the Refundable Investment Credit (RIC), a measure announced in the 2024 Budget to boost investment under the Pillar 2 global minimum tax rules. The RIC allows qualifying companies to claim tax credits of up to 50% of approved expenditures for certain activities.
Eligible activities include investments to expand manufacturing capacity, establish headquarters or service centers, conduct R&D and innovation, engage in commodity trading, and carry out energy efficiency or decarbonization projects. Credits can be applied against corporate income tax, and any unused credits are refundable in cash within four years from the claim application.
Qualifying expenditures cover capital investment, manpower, training, professional services, intangible assets, materials, logistics, and financing costs. When approving RICs, authorities consider the scale and impact of the investment on the company’s business or industry, including effects on resource efficiency and environmental sustainability. Companies may opt to receive credits in tranches of 20%, 30%, and 50% over two to four years.
