Key Snippets – Singapore Budget 2025

Key Snippets – Singapore Budget 2025

Key Snippets – Singapore Budget 2025

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  • On February 18, 2025
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  • 50% corporate income tax rebate in YA2025 – Minimum benefit of $2,000 (for active companies with at least one local employee in 2024). Total benefits capped at $40,000.
  • Supporting Enterprise transformation – SkillsFuture Enterprise Credit $10,000 of redesigned credit for eligible companies. To defray upfront costs of workforce transformation, Available in second half of 2026 and valid for 3 years.
  • Personal Income tax rebate for all tax resident individuals – 60% rebate (capped at $200) for YA2025.
  • Tax incentive introduced for companies and registered business trusts (tax resident in Singapore) to list in Singapore and grow their economic activities here.
    • Companies that put up primary listings will receive a 20% corporate income tax rebate, while secondary listings with share issuance will receive a 10% corporate income tax rebate. Companies will need to remain listed on the Singapore exchange for 5 years.
    • The rebates are subject to a cap of $6 Million per Year of Assessment for qualifying entities with market capitalization of at least S$1billion or S$3 Million per YA for entities with market capitalization of less than S$1 billion.
  • Tax incentive introduced under the FSI-FM scheme for newly listed fund managers. Tax benefit – a 5% concessionary income tax rate on qualifying income (subject to meeting qualifying conditions).
  • Tax exemption introduced on fund manager’s qualifying income arising from funds investing substantially in Singapore-listed Equities (subject to meeting qualifying conditions).
  • Extension of the double tax deduction for Internationalization Scheme from 31 December 2025 till 31 December 2030.
  • Extension of the Mergers and Acquisition Scheme from 31 December 2025 till 31 December 2030.
  • Enhancements made to Section 13W of the Income Tax Act 1947 that provides upfront certainty of non-taxation of companies’ disposal gains.
  • Introduction of a tax deduction on payments made to the Holding company or a special purpose vehicle for issuance of new shares of the holding company under employee equity-based remuneration schemes.
  • Introduction of an additional concessionary tax rate tier of 15% for the Financial Sector Incentive scheme.
  • Extension and enhancement of the Maritime Sector Incentive (“MSI”).

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