Empowering our workforce
| Schemes | Changes |
| Uplifting Employment Credit* |
Newly introduced as a form of time-limited wage offset to encourage businesses to hire ex-offenders. |
| Senior Employment Credit* |
Extended to 2025 |
| Part-time Re-employment Grant* |
Extended to 2025 |
| Enabling Employment Credit* |
Enhanced to cover a larger portion of wages and a longer duration for persons with disabilities who have not been in employment for at least six months. |
| Foreign domestic worker levy relief |
Withdrawn from YA 2025 |
* More details will be shared at the Ministry of Manpower’s Committee of Supply 2023.
Building enterprise capabilities
The following tax measures were extended from their original expiry dates:
| Tax measures | Current expiry date |
New expiry date |
| Deduction of costs for protecting intellectual property (IP) (under section 14A of the Act) |
YA 2025 |
YA 2028 |
| Deduction for qualifying expenditure on research and development (R&D) (under section 14C of the Act) |
YA 2025 | YA 2028 |
| Enhanced deduction for qualifying expenditure on R&D (under section 14D of the Act) |
YA 2025 | YA 2028 |
| Enhanced deduction for expenditure on licensing IP rights (under section 14U of the Act) |
YA 2025 | YA 2028 |
| Writing-down allowances (WDA) for capital expenditure on acquiring IP rights (under section 19B of the Act) |
YA 2025 | YA 2028 |
| Investment allowance (IA) scheme |
31 December 2023 |
31 December 2028 |
| IA-100% scheme for automation projects | 31 March 2023 | 31 March 2026 |
| Pioneer incentive | 31 December 2023 | 31 December 2028 |
| Development and expansion incentive | 31 December 2023 | 31 December 2028 |
| Intellectual property development incentive | 31 December 2023 | 31 December 2028 |
| Insurance Business Development - Insurance Broking Business scheme | 31 December 2023 | 31 December 2028 |
| 250% tax deduction for qualifying donations to Institutions of a Public Character (IPC) and eligible institutions | 31 December 2023 | 31 December 2026 |
| Corporate Volunteer Scheme1 (renamed from Business and IPC Partnership Scheme from 1 April 2023) | 31 December 2023 | 31 December 2026 |
Strengthening our fiscal sustainability
Excise duties for tobacco products
Excise duties on all tobacco products were increased by 15% from 14 February 2023.
1 From 1 January 2024, the CVS scheme is also enhanced as follows:
a) Expanded scope of qualifying volunteering activities to include those conducted virtually (e.g. online mentoring and tuition support for youths/children) or outside of the IPCs’ premises (e.g. refurbishment of rental flats); and b) doubled the cap on qualifying expenditure per IPC per calendar year to $100,000. The qualifying expenditure cap remains at $250,000 per business per YA.
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