The Income Tax (Amendment) Bill 2024 – Important changes and implications for businesses
The Income Tax (Amendment) Bill 2024 (ITA Bill), which proposes changes to the Income Tax Act 1947 (ITA), was published and read for the first time in Parliament on 9 September 2024. The ITA Bill proposes amendments to legislate measures announced in the 2024 Budget Statement and changes arising from the Ministry of Finance’s (MOF’s) periodic review of Singapore’s income tax regime.
The Multinational Enterprise (Minimum Tax) Bill 2024 (MMT Bill), which proposes to implement the Global Anti-Base Erosion Model Rules (Pillar Two) (GloBE Model Rules) of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (IF), comprising the Income Inclusion Rule (IIR), and the Domestic Top-Up Tax (DTT) regimes, was concurrently published and read in Parliament. The MMT Bill also proposes consequential amendments to the ITA.
Prior to this, the MOF had published drafts of the above bills and the Multinational Enterprise (Minimum Tax) Regulations for a public consultation exercise which took place from 10 June 2024 to 5 July 2024. The MOF subsequently published a summary of the feedback it received on 31 August 2024 and provided its responses to some of the said feedback. In this Tax Bulletin, we share some of our observations and comments on certain important tax changes proposed in the ITA Bill.
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