Singapore Budget 2025 Commentary
Discover what this year's Budget means for you and your business.
In this year’s Budget, several adjustments were proposed to personal income tax and the Central Provident Fund (CPF) scheme, reflecting the Government’s commitment to social equity and supporting Singaporeans’ retirement adequacy.
To commemorate Singapore’s 60th year of independence, a one-time personal income tax rebate of 60% of tax payable will be granted for the Year of Assessment (YA) 2025, applicable to income earned in 2024. This rebate is capped at $200 per taxpayer, and is designed to provide financial relief, especially for the lower- to middle-income earners. This rebate will be automatically applied by the Inland Revenue Authority of Singapore for Singapore tax resident individual taxpayers.
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Tax measures for Shipping Enterprises
The Approved Shipping Financing Arrangement award offers withholding tax exemptions for Singapore-based ship and container owners/ managers. The Maritime Sector Incentive is extended to 2031, with enhancements to support industry developments.
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.
Electric heavy goods vehicles and buses
Electric vehicles are not subject to fuel excise duties, unlike internal combustion engine vehicles. To balance revenue loss, the Additional Flat Component was introduced in Budget 2020 and extended to electric heavy goods vehicles and buses from January 2026.
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.
Climate measures
Singapore's 2025 Budget reinforces its commitment to climate action with increased funding for energy transition, adaptation measures, and sustainable finance.
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