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The Singapore Budget 2025 introduces key tax incentives and rebates to support business growth, innovation, and investment.

Corporate Income Tax (CIT) Rebate

A 50% CIT Rebate is granted for YA 2025, with a minimum CIT Rebate Cash Grant of S$2,000 for companies meeting the local employee condition—employing at least one Singapore Citizen or Permanent Resident in CY 2024. The total maximum benefit (CIT Rebate + CIT Rebate Cash Grant) is S$40,000 per company.

Tax Incentives for Employee Equity-Based Remuneration (EEBR)

Companies can claim tax deductions for transfers of treasury or previously issued shares to employees under EEBR schemes. However, newly issued shares do not qualify for tax deductions. Under the proposed changes to the law, deductions on payments made to a holding company or SPV for issuing new shares under EEBR schemes are available subject to certain limits.

100% Tax Deduction for Innovation Activities

Effective February 19, 2025, companies can claim a 100% tax deduction for payments made under an approved Cost Sharing Arrangement (“CSA”) for innovation activities, even if they do not meet the R&D criteria.

Tax Incentives for New Corporate Listings

Singapore will introduce:

• CIT rebate for tax resident Companies and Registered business trusts (up to 20% for primary listings, 10% for secondary listings) capped at S$6M or S$3M per YA (depending on the market capitalization) .
• 5% concessionary tax rate on qualifying income of fund managers with a primary listing in Singapore.
• Tax exemption on fund manager’s qualifying income arising from funds investing substantially in Singapore-listed equities.

Shipping / Project and Infrastructure Finance Tax Exemptions

The Approved Shipping Financing Arrangement (ASFA) Award grants withholding tax exemption on ship and container financing arrangements entered into on or before December 31, 2031.

The tax incentive in respect of exemption of qualifying foreign-sourced income from qualifying offshore infrastructure projects / assets received by approved entities listed on the Singapore exchange is extended to 31 December 2030.

Real Estate Investment Trusts (REITs) Incentives

Tax benefits for S-REITs and S-REIT exchange traded funds (“ETFs”) are extended until 31 December 2030.

These measures are aimed at sustaining Singapore’s position as a global REIT hub , promoting both S-REITS and S-REIT (ETFs).