Singapore Budget 2025 Commentary
Discover what this year's Budget means for you and your business.
Companies will receive a 50% corporate income tax rebate for the Year of Assessment 2025. Active companies that are not profitable but that have employed at least one local employee in 2024 will receive a cash grant of at least $2,000. A company can receive benefits of up to $40,000, comprising both the rebate and cash grant.
This is the second year running that a corporate income tax rebate has been provided to businesses. It acknowledges the diverse challenges faced by businesses given the uncertain external environment as all can benefit from the short-term support. This should be especially welcomed by Singapore small and medium-sized enterprises pressured by rising business costs as they pivot towards mid-term productivity measures and new opportunities.
Contact us
Other tax changes
The Double Tax Deduction for Internationalisation Scheme is extended to 31 December 2030. The withholding tax concession for non-resident arbitrators and mediators lapses after 31 December 2027. The Mergers and Acquisitions scheme is extended to 31 December 2030, maintaining current conditions and exclusions.
Tax measures for the financial sector
New tax deductions and incentives for financial sector to boost growth and investment.
Corporate income tax rebate
Companies get a 50% tax rebate for 2025. Non-profitable firms with local hires in 2024 receive a $2,000+ cash grant, with benefits up to $40,000.
SkillsFuture Programmes
Key enhancements include the SkillsFuture Enterprise Credit redesign and the new SkillsFuture Workforce Development Grant, increasing support for job redesign and upskilling.
Social measures
Budget 2025 introduces measures for households and individuals, including SG60 vouchers, increased CDC vouchers, lower preschool fee caps, climate vouchers, and enhanced support for lower-income families.
Return to our commentary page
Follow us
