Singapore´s Budget 2025

Below please find highlights on some of the major Budget announcements.

1. 50 % Corporate Income Tax Rebate in YA2025

• Companies will receive a 50 % rebate on their corporate tax payable, up to a cap of SGD 40,000.
• Those without taxable profits but with at least one local employee can get a minimum benefit of SGD 2,000, capped at SGD 4,000 per company. To be eligible, the company must be an active company that employed at least one employee per year.

2. Enhanced Progressive Wage Credit Scheme

• Employers who raise wages of their lower-wage staff will get higher co-funding levels. Co-funding will rise from 30 % to 40 % in 2025 and from 15 % to 20 % in 2026.

3. CPF Contributions

• CPF contribution rates for workers aged 55 to 65 will increase by 1.5 percentage points in 2026.

4. Property Tax

• The Annual Value Bands of owner-occupier residential Property Tax rates will be amended so that more homes will fall within bands with lower tax rates.

5. Watch on Global Tax Developments and BEPS 2.0

• Singapore is monitoring changes in international tax rules and potential further moves by major economies. The Domestic Top-up Tax could eventually affect multinational enterprises, but the government will adjust policies to remain an attractive location for global business and talent.

6. Introduction of tax incentives to attract companies to list in Singapore

• Singapore will introduce tax incentives for Singapore based companies and fund managers that choose to list in Singapore and grow their economic activities in Singapore. A tax incentive will also be introduced for fund managers which invest substantially in Singapore listed equities to encourage more investment in the capital market.

7. Personal Income Tax Rebate

• Personal income tax rebate of 60 % will be provided for the year of assessment (YA) 2025. This will be capped at SGD 200 to benefit middle income workers.