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Budget 2026

The Singapore Budget 2026, delivered on February 12, 2026, focuses on helping companies navigate high operating costs while positioning Singapore as a global “AI Nation.” Below is a comprehensive guide to the latest policies, tax reliefs, and grants available for companies.

Corporate Tax & Cost Relief

To provide immediate cash flow support, the government has introduced a tax rebate for the upcoming Year of Assessment (YA).

FeatureYA 2025 (Previous)YA 2026 (New)
Rebate Rate50%40%
Maximum Cap$40,000$30,000
CIT Rebate Cash Grant$2,000$1,500

  • Maximizing the Cap: To fully utilize the $30,000 tax rebate, a company’s estimated taxable income should be approximately **$540,000** (assuming a 17% tax rate before other exemptions).

  • Cash Grant Eligibility: Companies that employed at least one local worker in 2025 will receive a minimum of $1,500, even if they are not profitable.

Carbon Tax Update

The carbon tax has increased to $45/tCO2e for 2026. To mitigate this, the Energy Efficiency Grant (EEG) has been significantly enhanced.

  • Carbon Tax Impact: With the jump to $45, a facility emitting 5,000 tonnes of $CO_2$ faces a tax bill of $225,000.

  • EEG Base Tier: Supports up to 70% for SMEs (capped at $30,000) for pre-approved equipment like high-efficiency HVAC and LED lighting.

  • EEG Advanced Tier: Provides a combined cap of $350,000 for large-scale projects demonstrating at least 350 tonnes of lifetime carbon abatement.

  • Sectors: Now expanded to Manufacturing, Food Services, Retail, Construction, Maritime, and Data Centres.

    To apply: Via  Enterprise.sg

AI Innovation & The "AI Nation" Push

Budget 2026 moves beyond general digitalization to deep AI integration.

Champions of AI Programme

A new flagship initiative designed for mature enterprises to move beyond experimentation.

  • Customized Roadmaps: Direct consultancy to integrate AI into core business models.

  • Workforce Reskilling: Tailored training to ensure teams can manage AI-driven processes.

  • National Missions: Opportunities to lead sector-wide AI projects in logistics, healthcare, and finance.

Enterprise Innovation Scheme (EIS) Expansion

The EIS allows for a 400% tax deduction on qualifying activities.

  • Current Activities: R&D, IP registration, IP acquisition/licensing, and training.

  • 2026 Revision: Now includes AI Expenditure (software licenses, AI-specific hardware, and consultancy).

  • Cap: The AI category is capped at $50,000 of expenditure for YA 2027 and YA 2028.

Startup SG Equity

An additional $1 billion injection to support deep-tech startups.

  • To Qualify: Must be a Singapore-based Private Ltd (<5 years old), have $50,000 paid-up capital, and show significant IP/innovation.

  • To Apply: Submit pitch decks via the Startup SG Website.

Manpower & Payroll Changes

Local Qualifying Salary (LQS) Impact

Effective July 1, 2026, the LQS rises to $1,800 (from $1,600).

ComponentAt $1,600 (Old)At $1,800 (New)
Gross Salary$1,600$1,800
Employer CPF (17%)$272$306
Total Monthly Cost$1,872$2,106

Total Increase: $234 per worker/month. Note that PWCS co-funding (at 30%) helps offset this for 2026.

Work Passes & Senior Credits

  • Employment Pass (EP): Qualifying salaries rise in Jan 2027 to **$6,000** ($6,600 for FinServices). For older applicants (age 45+), the threshold is now $11,500.
  • Senior Employment Credit (SEC): Extended to end-2027. Provides up to a 7% wage offset for workers aged 60+ (earning up to $4k/month) to help cover the 0.5% Employer CPF hike.

Essential Grants Directory

GrantDetailsWebsite
MRA Grant70% support for overseas promotion & set-up.GoBusiness MRA
EDGSupport for core capabilities and sustainability.EnterpriseSG EDG
PSG50% funding (up to $30k) for pre-approved IT tools.Business Grants Portal
BizAdapt70% support for supply chain reconfiguration.EnterpriseSG BizAdapt
DTDi200% tax deduction; claim cap raised to **$400k**.EnterpriseSG DTDi

Pro-Tip: Most grants are processed through the Business Grants Portal (BGP). You will need a CorpPass to apply.

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Missing Trader Fraud and GST Input Tax Claims: What Businesses Need to Know

The Inland Revenue Authority of Singapore (IRAS) has stepped up audits and investigations into Missing Trader Fraud (MTF), a form of GST fraud that can expose businesses to significant tax adjustments, penalties, and interest—even where the business believes it has acted in good faith.

This article outlines what Missing Trader Fraud is, why it matters, and the practical steps businesses must take to protect their GST input tax claims.

What Is Missing Trader Fraud?

Missing Trader Fraud typically arises when a supplier charges GST on sales but subsequently:

  • Fails to report the taxable supplies to IRAS; and

  • Does not account for or pay the output tax collected; and

  • Becomes uncontactable or ceases operations.

In such cases, IRAS may disallow the purchaser’s input tax claims if it concludes that the purchaser knew or should have known that the transaction was connected to fraudulent activity.

IRAS Audit Focus and the Knowledge Principle

IRAS applies the Knowledge Principle, under which input tax claims may be denied if a business:

  • Had actual knowledge of the fraud; or

  • Should reasonably have known, based on the circumstances, that the transaction was linked to Missing Trader Fraud.

Importantly, the absence of intent to defraud does not automatically protect a business. The key consideration is whether reasonable due diligence was performed.

IRAS has published guidance and conducts audits specifically targeting Missing Trader Fraud arrangements.

IRAS’ Three-Pillar Due Diligence Framework

To mitigate the risk of being implicated in Missing Trader Fraud, IRAS expects GST-registered businesses to implement due diligence measures based on the following three pillars:

Pillar 1: Identify and Assess Risk Indicators

Businesses should be alert to red flags such as:

  • Unusually low pricing or abnormal profit margins

  • Newly incorporated or dormant suppliers

  • Cash-only transactions or complex payment flows

  • Requests for rapid or backdated transactions

Pillar 2: Perform Due Diligence Checks

Reasonable checks should be performed and documented, including:

  • Verifying the supplier’s GST registration status

  • Understanding the supplier’s business activities and operating premises

  • Reviewing contractual terms and commercial rationale

  • Confirming bank account ownership and payment arrangements

Pillar 3: Respond to Identified Risks

Where risks are identified, businesses are expected to:

  • Seek clarifications or supporting documentation

  • Escalate concerns internally

  • Reconsider or decline the transaction if risks cannot be satisfactorily addressed

Merely identifying risks without taking appropriate follow-up action may not be sufficient.

Consequences of Non-Compliance

Where IRAS determines that due diligence was not performed to a reasonable standard, it may:

  • Deny GST input tax claims

  • Impose penalties and late payment interest

  • Initiate further audits or investigations

These outcomes can arise even if the underlying goods or services were genuinely received.

Practical Takeaways for Businesses

  • Due diligence is not optional—it is a key condition for protecting GST input tax claims.

  • Documentation is critical. Businesses should retain evidence of checks performed.

  • Higher-risk industries and transactions warrant enhanced scrutiny.

  • Internal GST controls and supplier onboarding procedures should be reviewed regularly.

Conclusion

Missing Trader Fraud remains a significant compliance risk in Singapore’s GST landscape. IRAS expects businesses to act with commercial awareness and to take proactive steps to assess and manage GST risks in their supply chains.

Implementing robust due diligence procedures aligned with IRAS’ guidance is essential to safeguarding GST input tax claims and avoiding costly disputes with the tax authority.

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Accounting for Cryptoassets

As cryptoassets become increasingly common in commercial transactions and investment portfolios, companies must understand how to account for them appropriately under Singapore Financial Reporting Standards (International) [SFRS(I)]. Unlike traditional assets, cryptoassets do not fall neatly into existing categories such as cash, cash equivalents, or financial instruments, and therefore require careful classification based on their characteristics and intended use.

Classification of Cryptoassets

Cryptoassets generally fall into four broad categories:

  • Cryptocurrencies – Digital currencies used as a medium of exchange or store of value.

  • Utility Tokens – Tokens granting access to specific services, platforms, or products.

  • Asset Tokens – Tokens representing ownership or rights to underlying physical or financial assets.

  • Security Tokens – Tokens that mirror the economic rights of traditional securities such as equity or debt.

The accounting treatment depends on which category the asset falls into.

Accounting Treatment

Cryptocurrencies

  • If held for trading, they may be classified as inventory under SFRS(I) 2.

  • Otherwise, they typically meet the definition of intangible assets under SFRS(I) 1-38.

Utility Tokens

  • Depending on the holder’s purpose, they may be accounted for as inventory, intangible assets, prepayments, or financial instruments.

Asset Tokens

  • Accounting follows the standard relevant to the underlying asset the token represents.

Security Tokens

  • When they meet the definition of a financial asset, they fall under the scope of SFRS(I) 9 Financial Instruments.

Key Considerations for Businesses

Companies must evaluate cryptoassets based on their substance and economic reality, rather than solely their legal form. This assessment determines whether the asset represents a right to goods, services, cash flows, ownership interests, or simply an intangible digital resource. Because cryptoassets do not fit into one uniform accounting model, professional judgment and consistent application of relevant standards are essential.

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IFRS 18 – Key Technical Changes to Financial Statement Presentation

The International Accounting Standards Board (IASB) has issued IFRS 18 – Presentation and Disclosure in Financial Statements, which introduces a comprehensive restructuring of the statement of profit or loss and significantly expands disclosure requirements. Singapore is expected to adopt IFRS 18 into SFRS(I) for annual periods beginning on or after 1 January 2027, with full retrospective application.

Mandatory New Presentation Structure

Standardised Profit or Loss Categories

IFRS 18 introduces three mandatory, principle-based categories into the statement of profit or loss:

  • Operating

  • Investing

  • Financing

All income and expense items must be classified within these categories based on detailed application guidance. This represents a fundamental shift from existing practice, which allows more judgement in defining intermediate performance measures. The new structure aims to enhance cross-entity comparability and reduce diversity in practice.

Prescribed Subtotals

The standard introduces consistent subtotals across entities, such as:

  • Operating profit

  • Profit before financing and income taxes

Entities may no longer present bespoke subtotals unless they qualify as a Management-Defined Performance Measure (MPM) under the new disclosure framework.

Management-Defined Performance Measures (MPMs)

IFRS 18 establishes a specific framework for Management-Defined Performance Measures, defined as subtotals of income and expenses that:

  1. Are used in public communications outside the financial statements; and

  2. Reflect management’s view of an aspect of the entity’s overall financial performance.

Examples include Adjusted EBITDA, “core profit,” or other non-IFRS performance metrics commonly used in investor reporting.

For each MPM, entities must:

  • Provide a clear definition and description

  • Present a quantitative reconciliation to the nearest IFRS-defined subtotal

  • Disclose explanations of adjustments, including their nature and rationale

  • Present comparative information consistently across periods

This introduces discipline, transparency and comparability around non-GAAP performance metrics historically communicated without standardised requirements.

Enhanced Disaggregation Requirements

IFRS 18 tightens the requirements for disaggregation of income and expenses, requiring entities to:

  • Provide more granular breakdowns where necessary for users to understand performance

  • Avoid broad, aggregated line items such as “other expenses” unless immaterial

  • Apply a consistent basis for classification across the financial statements and notes

The standard specifies factors to assess whether items require further disaggregation, including nature, function, measurement basis, and variability.

Disclosures of “Unusual” Income and Expenses

IFRS 18 introduces explicit requirements to disclose unusual income and expense items, defined as items that:

  • Are not expected to recur in the near term; and

  • Have a significant effect on financial performance.

Entities must:

  • Identify such items based on the standard’s criteria

  • Disclose the amount, nature, and reason the item is considered unusual

  • Present comparative disclosures

This enhances users’ understanding of non-recurring items affecting performance trends.

Retrospective Application and Comparative Information

The standard requires full retrospective application, including:

  • Restating all comparative periods using the new P&L structure

  • Reclassifying historical income and expense items into operating, investing, and financing categories

  • Applying MPM definitions and reconciliations consistently to prior periods

  • Providing comparative disclosure of unusual items and disaggregation detail

As a result, entities presenting FY2027 financial statements will also present restated FY2026 comparatives under the IFRS 18 framework.

Implications for Reporting, Systems and Communications

The structural changes introduced by IFRS 18 will have significant implications for:

  • Financial statement presentation and mapping

  • Internal reporting frameworks

  • KPI and performance metric definitions

  • Investor and lender communication

  • Disclosure controls and accounting policy frameworks

Given the mandatory retrospective application and shift to standardised categories and subtotals, the adoption of IFRS 18 represents one of the most material presentation changes since the adoption of IFRS itself.

If you require technical guidance on IFRS 18 interpretation, presentation impacts, or disclosure implications, our team can support you with detailed analysis and implementation expertise.

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Regulatory Alert: Enhanced Compliance Requirements for RORC, ROND and RONS

Under the Companies and Limited Liability Partnerships (Miscellaneous Amendments) Act 2024 (CLLPMA), the Accounting and Corporate Regulatory Authority (ACRA) has updated the statutory disclosure regulations:

  • Announcement date: 9 June 2025
  • Effective date: 16 June 2025 (with a transition window for existing companies to file with the central registers, ending 31 December 2025)

This legislative framework significantly tightens reporting obligations for the Register of Registrable Controllers (RORC), Register of Nominee Directors (ROND) and Register of Nominee Shareholders (RONS). It removes historical grace periods, introduces central ACRA filing requirements, and substantially increases financial penalties for non-compliance.

Below is a summary of these statutory obligations, and why carrying out annual declaration exercises is a legal duty for all Singapore-incorporated companies and registered foreign companies.

1. Key Legislative Changes

To align Singapore with Financial Action Task Force (FATF) standards on Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT), ACRA introduced the following changes:

  • RORC from day one: Entities incorporated on or after 16 June 2025 must set up, maintain and file their Register of Registrable Controllers on the date of incorporation via BizFile+, removing the former 30-day grace period.
  • Central lodgment of ROND and RONS: Companies and foreign companies must lodge nominee director and nominee shareholder particulars, including the identities of the underlying nominators, with ACRA’s central registers.
  • Annual controller verification: Entities must check with every registrable controller at least once a year, by sending each controller a notice in the form prescribed under the regulations, to confirm whether their recorded particulars are correct or have changed.

2. Statutory Timelines and Operational Requirements

Corporate officers and Registered Filing Agents (RFAs) must keep strictly to ACRA’s timelines:

  1. 7-calendar-day updating rule: Changes must be recorded in the registers within 7 calendar days after the controller confirms them, replacing the previous rule of 2 business days. If a controller does not reply within 30 days of the notice, the 7 days run from the end of that 30-day period.
  2. Audit-trail evidence: Registrable controllers must give signed and dated written confirmation that their particulars are accurate. Registers should not be updated based on verbal assurances.
  3. Foreign companies included: Registered foreign companies in Singapore must now keep a Register of Nominee Directors at their registered office or at the office of their corporate service provider.

3. Public Disclosure vs Data Privacy

ACRA balances regulatory oversight with commercial privacy safeguards:

  • Public business profile: A director’s or shareholder’s nominee status is shown on the company’s BizFile+ business profile.
  • Confidential central registers: The identity and particulars of the underlying nominator or ultimate beneficial owner (controller) lodged with ACRA’s central registers are not public. This information is available only to public agencies, for regulatory and law enforcement purposes.

4. Penalties for Non-Compliance

  • Fines of up to S$25,000 per offence: Failing to set up, maintain, update or lodge accurate RORC, ROND or RONS details is an offence punishable by a fine of up to S$25,000 per offence, up from the previous maximum of S$5,000.
  • False or misleading information: A new offence applies to giving false or misleading information, without due diligence, in response to a production order or inquiry from ACRA about the registers. This is also punishable by a fine of up to S$25,000.
  • Officer liability: Liability can extend to both the company and its officers, such as directors and company secretaries.

Official ACRA Guidance and Resources

For the detailed legislation and practice guidance, please refer to ACRA’s official publications:

Stay Compliant with Our Corporate Secretarial Team

Complying with ACRA’s requirements calls for active record management and systematic verification. Our Corporate Secretarial team helps corporate groups, foreign companies and local business owners manage annual confirmation cycles, prepare compliant declarations, and make timely BizFile+ lodgments, so that you stay audit-ready.

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Accounting for Cryptocurrencies

As businesses in Singapore and globally explore new frontiers in digital finance, cryptocurrencies have increasingly appeared on corporate balance sheets. From technology firms like Tesla to financial institutions like DBS Bank, cryptoassets are no longer fringe investments. This shift raises an important question: How should cryptocurrencies and other digital tokens be accounted for under Singapore Financial Reporting Standards (International) [SFRS(I)]?

Cryptocurrency ≠ Cash or Financial Asset

Although often referred to as “digital money,” cryptocurrencies like Bitcoin or Ethereum do not meet the definition of cash or cash equivalents under SFRS(I) 1-7, as they are not legal tender and lack universal acceptance. Similarly, they are not financial assets under SFRS(I) 9, as they do not give holders contractual rights to receive cash or another financial asset.

Beyond Cryptocurrency: 4 Types of Cryptoassets

Cryptocurrency is just one category in the growing universe of digital tokens. The ISCA Financial Reporting Guidance (FRG) 2, titled “Accounting for Cryptoassets from a Holder’s Perspective”, classifies cryptoassets into four types, each with different accounting treatments:

Type of CryptoassetNature and Description
CryptocurrencyUsed as a medium of exchange or store of value; does not represent ownership rights or entitlements.
Utility TokenGrants access to specific services or products on a blockchain platform.
Asset TokenRepresents ownership of a physical or financial asset (e.g., real estate, commodities).
Security TokenRepresents equity or debt interests with associated contractual rights (e.g., dividends, repayment).

Accounting Treatment by Type

Type Applicable StandardsCommon Measurement Basis
Cryptocurrency- SFRS(I) 1-38 (Intangible Assets)- At cost less impairment
- SFRS(I) 2 (Inventories) - At cost less impairment or fair value less costs to sell (For broker-trader)
Utility Token- SFRS(I) 2 (Inventories)- At cost less impairment or fair value less costs to sell (For broker-trader)
- SFRS(I) 9 (Financial Instruments) - Fair value or amortised cost based on classification
- SFRS(I) 1-16 (Leases)- At cost less impairment
- SFRS(I) 1-38 (Intangible Assets)- At cost less impairment
- Prepayment- At amortised cost
Asset Token- Based on underlying assets
Security Token- SFRS(I) 9 (Financial Instruments) - Fair value or amortised cost based on classification

Conclusion

While cryptocurrencies are leading the headlines, companies should be aware that there are multiple types of cryptoassets, each with distinct accounting implications. The ISCA’s FRG 2 provides a structured framework to ensure that cryptoasset holdings are properly classified and presented under SFRS(I).

If your company holds or plans to invest in cryptoassets, it’s crucial to assess their nature and ensure compliance with the appropriate accounting standard. Our advisory team can help navigate this evolving space with clarity and accuracy.

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Budget 2025: Key Measures for Businesses

Singapore’s Budget 2025 was delivered in Parliament on 18 February 2025 by Prime Minister and Finance Minister Lawrence Wong, in the year of Singapore’s 60th anniversary (SG60). This article summarises the measures most relevant to companies and business owners.

1. Corporate Income Tax Rebate for YA 2025

  • Companies receive a 50% corporate income tax rebate for YA 2025.
  • Companies that employed at least one local employee in 2024 receive a minimum cash payout of $2,000, paid automatically from the second quarter of 2025.
  • The total benefit is capped at $40,000 per company.

2. Tax Schemes Extended and Enhanced

  • Double Tax Deduction for Internationalisation (DTDi): the 200% tax deduction on qualifying market expansion costs is extended to 31 December 2030.
  • Mergers & Acquisitions (M&A) scheme: extended to 31 December 2030, with a 25% allowance on qualifying acquisitions of up to $40 million per YA and a 200% deduction on transaction costs, capped at $100,000 per YA.
  • Land Intensification Allowance: extended to 2030.
  • Innovation cost-sharing: a 100% tax deduction for payments made under approved innovation cost-sharing agreements.
  • Employee equity schemes: tax deduction for shares issued under employee equity-based remuneration schemes, from YA 2026.

3. Support for Enterprises

  • Enterprise Financing Scheme: the Trade Loan cap is raised permanently from $5 million to $10 million.
  • Market Readiness Assistance grant: the enhanced support cap of $100,000 per new market is extended to 31 March 2026.
  • SkillsFuture Enterprise Credit: a new $10,000 credit for eligible companies with at least three resident employees, to support workforce and enterprise transformation.
  • National Productivity Fund: topped up by $3 billion.
  • Enterprise Compute Initiative: up to $150 million to help companies adopt AI tools and computing resources.

4. Workforce and Wages

  • Progressive Wage Credit Scheme: government co-funding for wage increases given in 2025 raised from 30% to 40%, and for 2026 from 15% to 20%.
  • Senior Employment Credit: extended to the end of 2026 to support the hiring of workers aged 60 and above.
  • CPF monthly salary ceiling: rises to $8,000 from 1 January 2026, completing the increases announced earlier.

CPF contribution rates for senior workers from 1 January 2026:

Employee ageEmployerEmployeeTotal
Above 55 to 6016%18%34%
Above 60 to 6512.5%12.5%25%

5. Foreign Manpower Changes Announced Alongside the Budget

The Ministry of Manpower announced the following at its 2025 Committee of Supply debate:

  • S Pass: minimum qualifying salary raised to $3,300 ($3,800 for financial services) for new applications from 1 September 2025, and for renewals from 1 September 2026.
  • S Pass levy: a single levy of $650 a month applies across all tiers from 1 September 2025.
  • Work Permit: from 1 July 2025, the maximum period of employment is removed and the maximum employment age is raised to 63.

6. Support for Households

  • $800 in CDC vouchers per Singaporean household ($500 in May 2025 and $300 in January 2026).
  • SG60 vouchers of $600 for Singaporeans aged 21 and above, and $800 for those aged 60 and above.
  • A 60% personal income tax rebate for YA 2025, capped at $200.

What This Means for Your Business

Budget 2025 continued the cash relief of the corporate income tax rebate while extending key tax schemes to 2030, giving businesses more certainty for planning expansion and acquisitions. Employers should budget for higher CPF contributions for senior staff and the higher S Pass salary and levy requirements.

How We Can Help You

We can help you claim the tax rebate and deductions correctly, assess whether the DTDi and M&A schemes apply to your plans, and review your payroll and foreign manpower costs. Contact us to arrange a discussion.

References

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Guide to starting a company in Singapore

Starting a business in Singapore? We’ve got you covered! 🚀

Our team has prepared a comprehensive guide to help future business owners navigate the company incorporation process with ease.

Whether you’re a local entrepreneur or a foreign investor, this guide covers everything you need to know—from business structures and registration to tax compliance and licensing.

✅ Step-by-step incorporation process
✅ Key requirements and compliance obligations
✅ Practical insights for a smooth startup journey

This resource is designed to save you time and ensure a hassle-free experience as you embark on your business journey. Download the guide now and start your business with confidence!

Click to download the guide to doing business in Singapore.

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Budget 2024: Key Measures for Businesses

Singapore’s Budget 2024, themed “Building Our Shared Future Together”, was delivered in Parliament on 16 February 2024 by then Deputy Prime Minister and Finance Minister Lawrence Wong. This article summarises the measures most relevant to companies and business owners.

1. Corporate Income Tax Rebate for YA 2024

  • Companies receive a 50% corporate income tax rebate for Year of Assessment (YA) 2024.
  • The rebate includes a minimum cash payout of $2,000 for companies that employed at least one local employee (Singapore Citizen or PR, excluding shareholder-directors) with CPF contributions in 2023.
  • The total benefit (cash payout plus rebate) is capped at $40,000 per company.

Example: A company with tax payable of $30,000 receives the $2,000 cash payout plus a further $13,000 rebate against its tax, a total of $15,000.

2. Refundable Investment Credit (RIC)

A new tax credit to attract high-value investments into Singapore:

  • Supports up to 50% of qualifying expenditure on activities such as new production capacity, R&D, regional headquarters and green transition projects.
  • Credits are offset against corporate income tax, and any unused amount is refunded in cash within four years.
  • Awarded on application through the Economic Development Board (EDB) or Enterprise Singapore.

3. Support for Enterprises

  • Enterprise Support Package: about $1.3 billion to help businesses with costs, restructuring and growth.
  • Enterprise Financing Scheme: the SME Working Capital Loan cap was raised permanently from $300,000 to $500,000. The enhanced Trade Loan cap ($10 million) and domestic construction Project Loan cap ($15 million) were extended to 31 March 2025.
  • SkillsFuture Enterprise Credit: a one-off $10,000 credit for eligible employers, covering up to 90% of out-of-pocket costs for workforce and enterprise transformation programmes.
  • Energy Efficiency Grant: extended to more sectors, including manufacturing, construction, maritime and data centres, to co-fund energy-efficient equipment.
  • National Productivity Fund: topped up by $2 billion.

4. Workforce and Wages

  • Progressive Wage Credit Scheme: government co-funding of wage increases given in 2024 raised to 50% for employees earning up to $2,500 a month and 30% for those earning above $2,500 up to $3,000. From 2025, the wage ceiling was raised to $3,000.
  • Local Qualifying Salary (used to count local employees for foreign worker quotas) raised from $1,400 to $1,600 from 1 July 2024.
  • Workfare Income Supplement: qualifying income cap raised from $2,500 to $3,000 a month from 1 January 2025.

CPF contribution rates for senior workers from 1 January 2025:

Employee ageEmployerEmployeeTotal
Above 55 to 6015.5%17%32.5%
Above 60 to 6512%11.5%23.5%

A one-year CPF Transition Offset covered half of the employer’s increase in 2025.

5. Other Tax Changes

  • Global minimum tax (BEPS Pillar Two): a 15% minimum effective tax rate, through the Income Inclusion Rule and a Domestic Top-up Tax, for multinational groups with annual revenue of at least €750 million, from financial years starting on or after 1 January 2025. This does not apply to most SMEs.
  • Renovation and refurbishment deduction: designer and professional fees qualify from YA 2025.
  • Property tax: lower owner-occupier property tax rates from 1 January 2025.

6. Support for Households

  • $600 in CDC vouchers per Singaporean household ($300 in June 2024 and $300 in January 2025).
  • A Cost-of-Living Special Payment of $200 to $400 for eligible adults in September 2024.
  • A 50% personal income tax rebate for YA 2024, capped at $200.

What This Means for Your Business

Budget 2024 focused on short-term cost relief through the tax rebate, together with longer-term support for transformation, financing and wage growth. Businesses should check their eligibility for the cash payout, review the expanded grants, and plan for higher CPF contributions for senior employees.

How We Can Help You

Our team can help you assess your tax position, apply the corporate income tax rebate correctly, and identify the grants and schemes relevant to your company. Contact us to arrange a discussion.

References