Budget 2026: Tax and AI Measures to Strengthen Investor Confidence
Deloitte has shared its Budget 2026 wish list, calling for stronger Tax and AI Measures to support businesses, households and long-term economic growth in Singapore. The firm said these steps are needed as global spending slows and economic pressures remain uneven.
The global economy is going through major structural changes. Budget 2026 should therefore help companies manage short-term costs while also encouraging innovation, digital growth and long-term resilience.
Tax Reform and Business Competitiveness
Tax policy will play a key role in helping businesses absorb uncertainty and adapt to change. They believe the tax system should stay outward-looking and aligned with Singapore’s wider economic strategy.
AI Growth, Innovation Incentives and Digital Transformation
To improve competitiveness, refining existing tax rules to improve cash flow and reduce complexity is a necessary next step. This includes more flexible loss carry-back rules, better group relief options and clearer guidance on tax treatment for mergers and overseas income. These changes could help companies expand while managing financial risks.
Stronger support for artificial intelligence is also needed. This includes setting up funds to help mid-sized businesses become AI-ready and expanding incentives under innovation schemes. Clearer guidance on global minimum tax rules was also urged, especially as new compliance requirements begin in 2026.
Talent Development and Workforce Sustainability
On innovation, better incentives to attract skilled talent in areas like AI, research and semiconductors are needed. This included special tax rates for experts, simpler R&D incentives and improvements to the Refundable Investment Credit, including higher support rates and faster payouts.
For everyday operations, there must be clearer timelines on e-invoicing under InvoiceNow and more help for businesses dealing with trade rules, sustainability reporting and supply chain changes.
On the people side, there is the need to update personal tax reliefs to reflect inflation and support caregivers and families. It also suggested more flexible work options for students and incentives to attract global tech talent, helping to build a future-ready workforce.
Turning Policy Changes into Business Opportunities
Overall, Budget 2026 is a chance to combine practical tax updates with forward-looking Tax and AI Measures that strengthen confidence, resilience and opportunity for both businesses and workers.
If your business needs guidance on tax planning, compliance or preparing for future policy changes, 3E Accounting is here to help. Contact our experienced team today for trusted, practical advice tailored to your business needs.
