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On 16 February 2024, the Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, delivered the Singapore Budget for the financial year 2024. The salient tax changes for individual and corporate taxes are as follows:
Personal Income Tax Rebate
Personal Income Tax Rebate will be granted to all tax residents for the Year of Assessment (YA) 2024. The rebate will be 50% of tax payable, capped at S$200.
Corporate Income Tax Rebate (CIT Rebate)
CIT Rebate of 50% of the corporate tax payable will be granted to all taxpaying companies, whether tax resident or not, for YA 2024. Companies that have employed at least one local employee in 2023 (referred to as “local employee condition”) will receive S$2,000 in cash payout (referred to as “CIT Rebate Cash Grant”). The maximum total benefits of CIT Rebate and CIT Rebate Cash Grant that a company may receive is S$40,000.
Renovation or Refurbishment (R&R) Expenditure
Effective YA 2025, the enhancements for R&R expenditure are as follow:
- Expand the scope of qualifying expenditure to include designer fees or professional fees.
- Fix the relevant three-year period for the purpose of computing the R&R expenditure cap, with the first three-year period being from YA 2025 to YA 2027.
- Allow an option to claim R&R deductions in one YA, subject to the prevailing expenditure cap of S$300,000.
Maritime Sector Incentive (MSI)
Effective YA 2024, an alternative basis of tax where the qualifying income of qualifying shipping entities is taxed by reference to the net tonnage of their ships will be available.
Finance and Treasury Centre (FTC) Incentive
FTC Incentive aims to encourage companies to grow treasury management capabilities and use Singapore as a base for conducting strategic finance and treasury management activities.
Effective 17 February 2024, an additional concessionary tax rate tier of 10% will be introduced.
Development and Expansion Incentive (DEI)
DEI encourages companies to engage in high value-added services or activities in Singapore, either through a new setup or an expansion of existing operations in Singapore.
Effective 17 February 2024, an additional concessionary tax rate tier of 15% will be introduced.
Intellectual Property Development Incentive (IDI)
IDI encourages companies to use and commercialize intellectual property rights arising from research and development in Singapore.
Effective 17 February 2024, an additional concessionary tax rate tier of 15% will be introduced.
Global Trader Programme (GTP)
GTP is eligible for established companies engaged in international physical trading looking to set up their trading operations in Singapore. Companies should have an international trading and distribution network, and a good track record.
Effective 17 February 2024, an additional concessionary tax rate tier of 15% will be introduced.
