In the 2024 fiscal year budget announcement, Singapore’s Deputy Prime Minister and Finance Minister, Heng Swee Keat, unveiled adjustments to tax policies, offering valuable opportunities for enterprises intending to expand into the Singaporean market. This measure provides more favorable conditions for businesses looking to broaden their operations in Singapore, including implementing a global minimum effective tax rate of 15% and reducing corporate tax by 50%.Starting from 2025, the Singaporean government will enforce a 15%minimum effective tax rate on large multinational corporations with global annual turnover exceeding €750 million. This policy is aimed at further promoting the standardization of corporate tax behavior and ensuring the sustainability of economic development.
01 Dual Focus on Social Welfare and Business DevelopmentThe Singaporean government, in its 2024 budget, prioritizes social welfare. By allocating €1.9 billion towards community development and living subsidies, the government aims to alleviate the economic burdens of its citizens. The government will allocate €350 million to provide a 50% personal income tax rebate for the 2024 assessment year, with a cap set at €200. Additionally, to allow more taxpayers with family responsibilities to benefit from tax rebates, the government will raise the income ceiling for eligible family members from the current €4,000 to €8,000 starting from the 2025 assessment year.
02 Business Relief and Wage AdjustmentsTo assist businesses in managing escalating costs, the Singaporean government introduces the “Enterprise Assistance Package,” providing €1.3 billion in support. This includes measures such as corporate tax rebates, financing schemes, and subsidies for skill development, aimed at alleviating the burden on businesses and promoting healthy economic growth. Additionally, the government raises the local wage threshold to €1,600 and strengthens the Employment Income Scheme to provide more wage protection and job opportunities for local employees.
03 Tax Policies and Personal Income Tax RebatesRegarding personal income tax, the government proposes a 50%personal income tax rebate and raises the eligibility criteria to better safeguard the interests of low-income groups. Furthermore, Singapore introduces a tax deduction scheme for overseas humanitarian aid donations to encourage active participation in charity work and promote the development of social welfare causes.
04 Specific MeasuresAmong these measures, the government allocates €1 billion to enhance the Gradual Wage Increase Scheme subsidy. Employers will receive a 50% subsidy on wage increases for residents earning a total monthly income of not more than €2,500. Residents refer to Singaporean citizens and permanent residents.
Looking ahead, Singapore’s economic prospects for 2024 demonstrate an exciting trend of dynamic growth. Despite global economic uncertainties, Singapore, with its positive attitude, robust infrastructure, and strategic position, will continue to play a significant role on the global stage.The implementation of the visa-free policy between China and Singapore further promotes economic and cultural exchanges between the two nations. This will provide numerous opportunities and challenges for entrepreneurs in 2024, encouraging them to actively engage in the Singaporean market and seize new business opportunities.It is believed that 2024 will be a golden age for many entrepreneurs to bravely face challenges and actively explore the Singaporean market under the guidance of the government.
