Finance Minister Lawrence Wong delivered the Singapore Budget 2024 address on February 16th, outlining financial strategies for the upcoming year. Many businesses are closely watching developments as shifts in budget allocations and policies offer a roadmap for adapting their own plans. Here’s a breakdown of the most impactful changes for businesses in Singapore:
Singapore plans to align its corporate income tax regime with Pillar 2 of the international BEPS 2.0 framework. Key components include:
A new S$1.3 billion Enterprise Support Package offers several benefits:
Singapore will introduce a new Refundable Investment Credit (RIC) to draw major investments across a range of sectors like manufacturing, digital services, innovation, and the green transition. This tax credit includes a refundable option allowing for unutilised credit to be refunded in cash.
Companies hiring foreign workers must now pay local employees at least a S$1,600 full-time monthly wage or a S$10.50 hourly rate for part-time employees. These increased requirements go into effect from July 1, 2024.
These are just some highlights from Singapore’s extensive budget changes. If you’d like to explore how your business can adjust and take advantage of these new measures, contact our tax and business advisory team at Alpadis for in-depth consultation.
