Introduction
On 8 June 2026, the Ministry of Finance (“MOF“) announced a public consultation on the proposed Finance (Income Taxes) Bill 2026 (“Bill“). The Bill covers 22 proposed amendments to the Income Tax Act 1947 (“ITA“) and the Multinational Enterprise (Minimum Tax) Act 2024 (“MMTA“) as follows:
- Ten amendments to the ITA to implement the tax measures announced at Budget 2026, which aim to (i) support businesses and workers; (ii) strengthen Singapore as a business and philanthropy hub; and (iii) encourage giving and volunteerism.
- Ten amendments to the ITA regarding changes arising from MOF’s periodic review of Singapore’s income tax system, which aim to support taxpayers and improve tax administration.
- Two amendments to the MMTA relating to the Pillar Two Global Anti-Base Erosion (“GloBE“) Model Rules to implement the Side-by-Side Safe Harbour and the GloBE information return exchange framework.
Below, we discuss the details of the proposed amendments to the ITA and MMTA.
The consultation closes on 1 July 2026.
Amendments to Implement Budget 2026 Measures
Supporting Businesses and Workers
| Tax Change | Details | Relevant Dates |
|---|---|---|
| Enhancement to Enterprise Innovation Scheme ("EIS") |
| Enhanced for years of assessment ("YA") 2027 and YA 2028. |
| 50% Corporate Income Tax Rebate in YA 2026 |
| Rebate provided in YA 2026 |
| Enhancement to Double Tax Deduction for Internationalisation scheme |
| Applies from YA 2027 |
| Tax deduction for Central Provident Fund ("CPF") cash top-ups made by platform operators on behalf of platform workers | Platform operators may claim deductions for CPF cash top-ups made for eligible platform workers under the Voluntary Contributions to MediSave Account scheme, aligning with the tax treatment for top-ups made by employers. | Applies from YA 2027 to top-ups made on or after 1 January 2026 |
| Tax Change | Details | Relevant Dates |
|---|---|---|
| Extension of 250% tax deduction for qualifying donations | Extended to qualifying donations made from 1 January 2027 to 31 December 2029. | 1 January 2027 to 31 December 2029 |
| Extension of Corporate Volunteer Scheme | The 250% deduction will be extended to qualifying expenditure incurred from 1 January 2027 to 31 December 2029.
| 1 January 2027 to 31 December 2029 |
For more details on Budget 2026, please see our February 2026 Legal Update titled “Singapore Budget 2026: Securing Our Future Together in a Changed World“.
Amendments Arising from Periodic Review
The proposed amendments arising from MOF’s periodic review aim to support taxpayers and improve tax administration.
Supporting Taxpayers
| Tax Change | Details | Relevant Dates |
|---|---|---|
| Expansion of Maritime Sector Incentive – Approved International Shipping Enterprise award | Expanded to cover Singapore-flagged ships. Shipping groups with this incentive will therefore only need to tap on one incentive for all their ships. | From YA 2027 |
| 20% Fixed Expense Deduction Ratio ("FEDR") for self-employed persons and individual sole proprietors |
| From YA 2027 |
| Tax exemption for employer-subsidised childcare benefits | Extended to include MOE Kindergartens. | From YA 2027 |
| Tax exemption for payments under the ComLink+ Package for Employment | Exemption applies to payments made on or after 1 May 2025. | From 1 May 2025 |
| Tax Change | Details | Relevant Dates |
|---|---|---|
| Mandatory use of IRAS' e-service for objections and revisions to tax assessments | Companies will be required to use IRAS' e-service to file objections and revisions to submitted corporate income tax returns. | From 1 July 2027 |
| Requirements for bodies of persons | To ensure consistency in tax treatment across different types of business entities, the following requirements that currently apply to companies will be extended to bodies of persons:
| From YA 2027 |
| Power to revoke certain tax incentives for sovereign fund entities, foreign government-owned entities and international organisations | The Minister or an authorised body will be empowered to revoke these tax incentives if conditions are not met, in line with the revocation powers applicable to other tax incentives. | From gazette date |
| Appeal timeline for Board of Review decisions | A standardised appeal timeline of 28 days will apply for appeals to the General Division of the High Court. | From gazette date |
| Notice period for Board of Review hearings | The notice period for hearings before the relevant Boards of Review will be extended from 14 days to 35 days. | From gazette date |
| Tax Change | Details | Relevant Dates |
|---|---|---|
| Implement the Side-by-Side Safe Harbour |
| Will apply to financial years beginning on or after 1 January 2026 |
| Implement the GloBE information return exchange framework | The legislative amendments will: 1. allow Singapore to exchange relevant GloBE information with other tax administrations; 2. require MNE groups to file GloBE information returns with the Inland Revenue Authority of Singapore ("IRAS") if IRAS does not receive such information from the relevant tax administration within the stipulated deadlines; and 3. apply existing penalties for non-compliance and inaccurate filings to such filings in (2). | From gazette date |
Click on the following links for more information (available on the MOF website at https://www.mof.gov.sg/home):
- MOF page titled “Public Consultation on Proposed Finance (Income Taxes) Bill 2026“
- Full text of the Bill
If you have any queries on the above, please reach out to our team set out on this page.
For regional Tax matters, please see Rajah & Tann Asia’s Tax Practice Group for more information.
Disclaimer
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