Singapore Budget 2024: Building our shared future together

Fidinam Singapore News Tax Consultancy

Deputy Prime Minister and Finance Minister, Mr. Lawrence Wong delivered the 2024 Budget Statement in Parliament on 16 February 2024. The Budget, themed “Building our shared future together”, is a budget to keep Singapore competitive and moving forward, equip people to realize their fullest potential and give more assurance to Singaporean families and seniors.

Amidst the initiatives to enhance social support, labor force skills, artificial intelligence strategy and environmental sustainability, the Government has introduced major changes to the tax system.

Corporate income tax (“CIT”)

Companies will receive a 50% corporate tax rebate (“CIT Rebate”) capped at $40,000 in the year of assessment for 2024 as part Enterprise Support package.

Companies that have employed at least one local employee in 2023 will receive a minimum benefit of $2,000 in the form of a cash payout (“CIT Rebate Cash Grant”).

The maximum total benefits of CIT Rebate and CIT Rebate Cash Grant is $40,000.

The maximum working capital loan quantum will also be permanently raised to $500,000.

Singapore will implement the Income Inclusion Rule (“IIR”) and Domestic Top-up Tax (“DTT”) under Pillar 2 from businesses' financial years starting on or after 1 January 2025, while reserving its position on the Undertaxed Profits Rule (UTPR) at this time.

A new Refundable Investment Credit (“RIC”) scheme will be introduced, consistent with the Global Anti-Base Erosion (GloBE) Rules for Qualifying Refundable Tax Credits (QRTCs), which is to be offset against the corporate income tax payable by a company and refunded in cash within four years from when the conditions for receiving the credits are met.

New tiers for various concessionary tax rate incentives will be available from 17 February 2024. These will allow a wider range of companies to access these tax benefits and have more room to rightsize their investments in Singapore in proportion to the benefits that they expect to reap.

To encourage the continued growth of the asset and wealth management industry in Singapore, the tax incentive schemes for funds managed by Singapore-based fund managers will be extended until 31 December 2029. Additionally, Section 13O will extend to Singapore limited partnerships (LPs), and the economic criteria of the schemes will be revised with effect from 1 January 2025.

Personal income tax

There will be a 50% personal income tax rebate for 2024, capped at $200.

The income threshold for taxpayers who claim dependent-related reliefs will be raised to $8,000 from $4,000, with effect from the year of assessment 2025.

Property tax

AV bands of owner-occupier residential property tax rates will be raised from Jan 1, 2025.

Retirees living in higher-end residential homes who face cash flow issues paying property tax bills will be offered a 24-month interest-free instalment plan.

The additional buyer’s stamp duty (ABSD) concession for Singaporean married couples will be extended to single Singapore citizens aged 55 and above.

CPF changes

CPF contribution rates for those aged 55 to 65 will be increased by a further 1.5 percentage points in 2025.

Enhanced Retirement Sum (ERS) will be increased from three times the Basic Retirement Sum to four times from 2025. This means the ERS next year will be $426,000. This will allow more members aged 55 and above to fully commit their accumulated CPF savings to receive higher CPF payouts, should they wish to do so.

From 2025, the Special Account (SA) will be closed for those aged 55 and above. The SA savings will be transferred to the Retirement Account (RA) – up to the Full Retirement Sum, where they will continue to earn the long-term interest rate. The remaining SA savings will be transferred to the Ordinary Account (OA). Of course, members can voluntarily transfer their OA savings to the RA at any time, up to the revised ERS, to earn higher interest, and to receive higher retirement payouts.

Support for businesses

Co-funding levels for the Progressive Wage Credit scheme (PWCS) will be raised from a maximum of 30%, to a maximum of 50%.

In 2025, the scheme’s wage ceiling will also be raised from $2,500 to $3,000.

Pillar Two of the Base Erosion and Profit Shifting (“BEPS”) 2.0 initiative

Income Inclusion Rule (“IIR”) and Domestic Top-up Tax (“DTT”) will be implemented from financial years starting on or after 1 January 2025

This will apply to relevant multinational enterprise (“MNE”) groups with annual group revenue of 750 million Euros or more in at least two of the four preceding financial years.

IIR will apply to in-scope MNE groups that are parented in Singapore, in respect of the profits of their group entities that are operating outside Singapore.

DTT will apply to in-scope MNE groups in respect of the profits of their group entities that are operating in Singapore.

Undertaxed Profits Rule (“UTPR”) will be considered at a later stage


All Singaporeans aged 21 to 50 will be given a one-time MediSave Bonus of up to $300.

The per capita household income thresholds for Singapore’s healthcare and associated social support subsidy schemes, such as MediShield, will be updated. Each subsidy tier will range from S$100 to S$800.

$3.5 billion for Age Well SG initiatives over the next decade, which will feature an expanded network of active Ageing Centres, more assisted living options, and upgrades to residential estates that enable seniors to live more independently.

Assurance for families and households

An additional $600 in Community Development Council (CDC) vouchers for all Singaporean households.

A one-off additional cost-of-living special payment of $200 to $400 for all Singaporean adults.

Incentives for green efforts

Existing schemes for SMEs will be enhanced to encourage more partnerships with larger companies, the adoption of green solutions and cutting emissions.

The Energy Efficiency Grant (EEG) will also be extended to more sectors, including manufacturing, construction, maritime, and data centers and their users. The other sectors will be progressively onboarded, and companies in all EEG-supported sectors will be able to apply for the grant through the Business Grant Portal by the end of 2024.

Up- and reskilling of labor force

A new SkillsFuture Level-Up program, which includes a $4,000 SkillsFuture Credit top-up for all Singaporeans aged 40 and above. To be given in May, this sum can be used to enroll in selected training courses that will enhance employability.

Subsidies will also be given to all Singaporeans aged 40 and above to pursue another full-time diploma at a local polytechnic, the Institute of Technical Education (ITE) or arts institutions from academic year 2025.

Benefits will also be given to younger workers. To encourage ITE graduates aged 30 and below to upskill, their Post-Secondary Education Account will be topped up by $5,000 when they enroll in a diploma course. They will also get a $10,000 top-up to their Central Provident Fund Ordinary Account after they complete the course.

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