Singapore Tax Changes — Live Tracker

What changed

The second planned GST increase took effect on 1 January 2024, following the first step from 7% to 8% on 1 January 2023. IRAS issued transitional rules for contracts and invoices that straddled the changeover date, including an anti-profiteering framework. Businesses needed to update their accounting systems, invoicing templates, point-of-sale systems, and contracts to reflect the new rate. The Assurance Package (cash payouts and GST vouchers) continued to offset the impact on lower-income households.

Who it affects

• All GST-registered businesses in Singapore
• Businesses with taxable turnover above S$1 million considering voluntary registration
• Businesses with contracts straddling 1 January 2024 requiring rate transitional treatment
• Importers of goods and services subject to reverse charge

What to do

Confirm all invoicing, accounting software, and payment systems are updated to apply the 9% rate. Review any multi-year contracts entered before 2024 to ensure the correct GST rate is being applied and that transitional billing rules were followed for the changeover period. Check that your GST F5/F8 return reflects the 9% rate for supplies made on or after 1 January 2024.

What changed

Singapore Budget 2025 introduced a one-year CIT rebate of 50% of tax payable, capped at S$40,000, for all companies for YA2025 (income year 2024). A CIT Rebate Cash Grant of S$2,000 was added for companies that employed at least one local employee (Singapore Citizen or PR) in 2024, ensuring even loss-making or newly incorporated companies with staff receive a benefit. The cash grant is paid out directly and does not reduce CIT payable.

Who it affects

• All Singapore-incorporated companies filing YA2025 returns
• Companies with assessable income generating CIT payable
• Companies with at least one local Singapore Citizen or PR employee in 2024 (for the cash grant)
• Newly incorporated companies in their first year of trading

What to do

Ensure your YA2025 corporate tax return is filed accurately to claim the rebate automatically — IRAS applies it to the tax assessed. If your company had at least one local employee in 2024, confirm that payroll records and CPF contributions are up to date so you are eligible for the cash grant. Check IRAS MyTax Portal for the disbursement of the cash grant if applicable.

What changed

The VCC framework launched in January 2020, enabling investment funds to incorporate or re-domicile in Singapore under a structure that allows capital to fluctuate freely without shareholder approval — unlike a standard company. VCCs can be structured as umbrella funds with multiple sub-funds, each with segregated assets and liabilities. For tax purposes, qualifying VCCs are treated as transparent or as single taxable entities depending on their structure. Uptake accelerated significantly in 2023 and 2024, with over 1,000 VCCs registered with ACRA. The MAS-IRAS VCC Grant Scheme provides co-funding for setup and ongoing operating costs.

Who it affects

• Fund managers seeking a Singapore-domiciled fund structure
• Private equity and venture capital funds considering re-domiciling
• Family offices exploring Singapore fund structures
• Asset managers looking to launch Singapore retail or institutional funds

What to do

Fund managers evaluating a Singapore fund structure should assess whether the VCC offers advantages over a limited partnership or unit trust for their investor base and asset class. Review the tax transparency conditions with your tax adviser and check eligibility for the VCC Grant Scheme, which can offset a portion of setup and operational costs. ACRA provides a streamlined incorporation process specifically for VCCs.

What changed

Singapore's tax treaties and domestic law have long provided exemptions for certain categories of foreign-sourced income when remitted to Singapore, subject to conditions including the income having been subject to tax in the source country. In response to BEPS 2.0 and EU concerns about substance, IRAS and MAS conducted consultations in 2023 and issued updated guidance requiring companies to demonstrate genuine economic activity in Singapore when relying on Section 10(25) exemptions. Groups relying heavily on Singapore as a holding or treasury hub with minimal local substance are at increased risk of challenge.

Who it affects

• Singapore holding companies receiving foreign dividends
• Companies with regional treasury centres in Singapore
• Businesses earning foreign branch profits remitted to Singapore
• MNE groups using Singapore service hubs claiming foreign service income exemptions

What to do

Review the economic substance of any Singapore entities that rely on Section 10(25) exemptions for foreign-sourced income. Document the substance factors — number of employees, key decision-making in Singapore, physical premises, and management and control. Groups with thin substance in Singapore should consider whether restructuring or adding genuine substance is warranted before the next IRAS audit cycle.

What changed

Singapore legislated the GloBE (Global Anti-Base Erosion) rules as the Minimum Top-up Tax and Domestic Top-up Tax, applying from YA2025 to MNE groups meeting the €750 million revenue threshold. Singapore's headline corporate income tax rate is 17%, but after start-up exemptions, the partial tax exemption scheme, and investment incentives, many companies' effective rates can fall below 15%. Where the ETR on Singapore profits is below 15%, the DTT ensures Singapore collects the top-up domestically rather than ceding it to another jurisdiction under the Income Inclusion Rule.

Who it affects

• MNE groups with consolidated global revenues of €750 million or more
• Singapore subsidiaries of large MNE groups benefiting from tax incentives or exemptions
• Companies in the Pioneer or Development and Expansion Incentive schemes
• Financial services groups with significant Singapore operations

What to do

In-scope MNE groups should model their GloBE effective tax rate for Singapore operations. Assess whether Pioneer status, development incentives, or partial exemptions reduce your ETR below 15% and quantify the resulting MTT or DTT exposure. Engage your tax adviser to consider transitional safe harbour elections (such as the Transitional CbCR Safe Harbour) that may reduce compliance burden in early years, and review incentive arrangements to determine whether their value persists post-Pillar Two.