The Budget Statement for Budget 2025 was delivered on 18 February 2025. Singapore has bounced back strongly from the COVID-19 pandemic and ended 2024 on a strong footing with a 4.4% increase in the economy, easing inflation, wage increases that outpaced inflation, and income inequality at its lowest since 2000. In the face of heightening geopolitical tensions between global superpowers and economic uncertainty, Budget 2025 seeks to advance the nation’s growth frontier and secure the future of its people. At a glance, some key tax measures and changes announced in Budget 2025 are as follows:
- Tax implications for corporations:
- Introduction of a corporate income tax rebate;
- Introduction of tax incentives for fund managers listed in Singapore;
- Introduction of a new tax deduction for equity-based remuneration (“EEBR“) schemes;
- Introduction of a new tax deduction for cost-sharing agreements;
- Introduction of an additional tier for the Financial Sector Incentive (“FSI“) scheme;
- Extension of the Mergers & Acquisitions (“M&A“) scheme;
- Extension of the Double Tax Deduction for Internationalisation (“DTDi“) scheme;
- Extension and refinement of certain insurance schemes;
- Extension and enhancement of the Land Intensification Allowance scheme;
- Enhancement of tax exemptions on gains derived from the disposal of ordinary shares;
- Changes to tax incentive schemes for the Maritime sector;
- Rationalisation of tax incentives for project and infrastructure finance; and
- Lapsing of certain tax schemes.
- Tax implications for individuals:
- Introduction of a personal income tax rebate; and
- Introduction of the Matched MediSave Scheme (“MMSS“).
- Tax implications for Real Estate Investment Trusts (“REITs”) and their investors
- Extension and enhancement of income tax concessions for REITs listed on the Singapore Exchange (“S-REITs“);
- Extension of income tax concessions for REIT Exchange-Traded Funds (“REIT ETFs“) listed on the Singapore Exchange (“S-REIT ETFs“); and
- Extension of Goods & Services Tax (“GST“) remissions for S-REITs and Singapore-listed Registered Business Trusts (“RBTs“) in certain sectors.
- Tax implications for vehicles:
- Introduction of a new road tax for electric heavy goods vehicles and buses.
In this Update, we discuss the key tax measures, changes, enhancements and extensions, as well as refinements to the existing Singapore tax regime.
For more information, click here to read the full Legal Update.
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