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Singapore Budget 2024 Summary

Singapore Budget 2024 SummaryDear Reader,

Welcome to our Singapore Budget 2024 summary.

The following is the Budget 2024 Summary announced by Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong in his Budget Statement for the Financial Year 2024 which was delivered in Parliament on Friday, 16 February 2024.

 

OVERVIEW OF TAX CHANGES FOR BUSINESSES

Corporate Income Tax (CIT) Rebate and Cash Grant for Year of Assessment 2024

  • Eligible companies will receive a CIT Rebate of 50% of tax payable for YA 2024.
  • Companies employing at least one local employee in 2023 will receive a minimum benefit of $2,000 as a CIT Rebate Cash Grant.
  • The maximum benefits of CIT Rebate and CIT Rebate Cash Grant that a company may receive is $40,000.

Enhanced Tax Deduction for Renovation or Refurbishment (R&R) Expenditure

  • Qualifying expenditure will include designer or professional fees.
  • Relevant three-year period for computing R&R expenditure cap will be fixed from YA 2025.

Introduction of Refundable Investment Credit (RIC)

  • RIC will support up to 50% of qualifying expenditures, offset against CIT payable.

Implementation of Income Inclusion Rule (IIR) and Domestic Top-up Tax (DTT) under BEPS 2.0

  • Imposing a minimum effective tax rate of 15% on profits of multinational enterprise (MNE) groups from financial years starting on or after 1 January 2025.

Extension and Revision of Tax Incentive Schemes for Qualifying Funds

  • Schemes extended till 31 December 2029 with key changes effective from 1 January 2025.

Introduction of Alternative Basis of Tax for Shipping Entities under Maritime Sector Incentive (MSI) Sub-Schemes

  • Qualifying income of shipping entities will be taxed by reference to net tonnage from YA 2024.

Introduction of Additional Concessionary Tax Rate Tiers for Various Incentives

  • Additional CTR tiers introduced for Finance and Treasury Centre (FTC), Aircraft Leasing Scheme (ALS), Development and Expansion Incentive (DEI), Intellectual Property Development Incentive (IDI), and Global Trader Programme (GTP).

Revisions to Additional Buyer’s Stamp Duty (ABSD) Remission Clawback Rates for Housing Developers

  • Projects meeting specified criteria will be subjected to lower ABSD remission clawback rates from 16 February 2024.

 

OVERVIEW OF TAX CHANGES FOR INDIVIDUALS

Personal Income Tax (PIT) Rebate for YA 2024

  • A PIT Rebate of 50% of tax payable granted to all tax resident individuals, capped at $200 per taxpayer.

Raise Annual Income Threshold for Dependant-Reliefs to $8,000 from YA 2025

  • Increased income threshold for dependant-related reliefs from $4,000 to $8,000.

Revision of Annual Value (AV) Bands for Owner-Occupier Residential Property Tax Rates from 1 January 2025

  • Adjustments to AV bands to reflect sharp rise in AVs over the last two years.
Marginal PT rate Current AV band

 

 From 2025
0% $0 to $8,000 $0 to $12,000
4% >$8,000 to $30,000 >$12,000 to $40,000
6% >$30,000 to $40,000 >$40,000 to $50,000
10% >$40,000 to $55,000 >$50,000 to $75,000
14% >$55,000 to $70,000 >$75,000 to $85,000
20% >$70,000 to $85,000 >$85,000 to $100,000
26% >$85,000 to $100,000 >$100,000 to $140,000
32% >$100,000 >$140,000

 

Extension of GIRO Scheme for Residential Property (Retirees) and Introduction of New ABSD Concession for Single Singapore Citizen Seniors

  • Extension of interest-free GIRO instalment plan for retirees.
  • ABSD concession extended to single SC seniors aged 55 and above for property purchases.

Lapse of Course Fees Relief (CFR) and Removal of CPF Cash Top-Up Relief for Matched Retirement Savings Scheme (MRSS)

  • CFR to lapse with effect from YA 2026.
  • CPF Cash Top-Up Relief to be removed for cash top-ups attracting MRSS matching grant from YA 2026.

 

SUPPORT FOR SINGAPOREANS

For individuals

  • Cash $200 to $2,150 for all Singaporeans aged 21 and above
  • CPF MediSave Account $100 to $1,650 for all Singaporeans
  • CPF Retirement or Special Account $400 to $2,500 for Singaporeans born in 1973 or earlier
  • NS LifeSG Credits $200 for all past and present national servicemen

For households

  • CDC Vouchers $600 in total for all Singaporean households
  • U-Save $550 to $950 for HDB households
  • S&CC Rebate 2 to 4 months offset for HDB households

MAJULAH PACKAGE (For Singaporeans born in 1973 or earlier)

  • Earn and Save Bonus (from Mar 2025) $400 to $1,000 annual bonus to CPF Retirement or Special Account for Singaporeans who work and earn up to $6,000 per month
  • Retirement Savings Bonus (Dec 2024) $1,000 to $1,500 one-off bonus to CPF Retirement or Special Account for Singaporeans with CPF retirement savings less than the 2023 Basic Retirement Sum ($99,400)
  • MediSave Bonus (Dec 2024) $750 to $1,500 one-off bonus to CPF MediSave Account

Supporting Families

  • One-year Parental Provisional Housing Scheme (Open Market) Voucher for eligible families to rent an HDB flat in the open market
  • Reduce monthly full-day childcare fee caps in Government-supported preschools in 2025, to $640 for Anchor Operators and $680 for Partner Operators
  • Enhance existing preschool subsidies for lower-income families
  • Roll out ComLink+ Progress Packages to support lower-income families with young children that take action to improve preschool education, employment, financial stability, and save up for home ownership

Supporting Persons with Disabilities

  • Reduce out-of-pocket expenses for Singaporean students with special needs in Special Education schools and Special Student Care Centres
  • Provide more support in employment and integration into the community by expanding spaces in Sheltered Workshops and Day Activity Centres

Empower Active Ageing

  • $3.5 billion for Age Well SG to support seniors in their homes and communities, including expanding our network of Active Ageing Centres, as well as introducing more senior-friendly home fittings and commuter infrastructure

Assurance for Healthcare

  • One-time MediSave Bonus of up to $300 for all adult Singaporeans born in 1974 to 2003 (Singaporeans born in 1973 or earlier will benefit from the MediSave Bonus component of the Majulah Package)
  • Increase per capita household income thresholds for healthcare and associated social support subsidy schemes

Support for Retirement Needs

  • Majulah Package for 1.6 million Singaporeans born in 1973 or earlier to support their retirement and healthcare needs
  • Increase quarterly payments from the Silver Support Scheme by 20%, and raise qualifying per capita household income threshold to $2,300
  • Expand the Matched Retirement Savings Scheme to cover Singaporeans aged 55 and above and increase annual matching cap to $2,000, with a lifetime matching cap of $20,000
  • Raise the CPF Enhanced Retirement Sum to 4 times the Basic Retirement Sum
  • Extend interest-free GIRO instalment plan for residential Property Tax bills to 24 months for eligible retirees aged 65 and above

 

INVESTING IN OUR PEOPLE

Mid-career Reskilling

  • Introduce the SkillsFuture Level-Up Programme for Singaporeans aged 40 and above
  • $4,000 SkillsFuture Credit (Mid-Career) top-up in May 2024, which can be used for selected industry-oriented training courses with better employability outcomes
  • Mid-Career Enhanced Subsidy for another publicly-funded full-time diploma
  • Up to $3,000 monthly SkillsFuture Mid-Career Training Allowance for up to 24 months, for selected full-time courses

Lower-wage Workers

  • Increase the Workfare Income Supplement scheme payouts to a maximum of $4,900 per year, and raise qualifying income cap to $3,000, from Jan 2025
  • Raise the Local Qualifying Salary to $1,600, from Jul 2024
  • Raise co-funding levels for the Progressive Wage Credit Scheme (PWCS) this year to a maximum of 50%, and raise the PWCS wage ceiling to $3,000 in 2025

ITE Graduates

  • Introduce the ITE Progression Award for younger ITE graduates pursuing diploma qualification
  • Upon enrolment, top up $5,000 to Post-Secondary Education Account
  • Upon completion, top up $10,000 to CPF Ordinary Account

 

SUPPORTING BUSINESSES AND DRIVING GROWTH

Manage Rising Business Costs

  • $1.3 billion Enterprise Support Package
  • Enhance the Enterprise Financing Scheme
  • Extend the SkillsFuture Enterprise Credit until Jun 2025

Strengthen Competitive Advantages

  • Invest $3 billion in Research, Innovation and Enterprise 2025
  • Introduce the Refundable Investment Credit scheme
  • Top up $2 billion to the National Productivity Fund
  • Top up $2 billion to the Financial Sector Development Fund
  • Enhance the Partnerships for Capability Transformation scheme

Invest in Emerging Technologies

  • Invest more than $1 billion over 5 years for the National AI Strategy 2.0
  • Upgrade the Nationwide Broadband Network to 10 Gbps

Support Enterprises in Sustainability

  • Extend and expand the Enterprise Financing Scheme – Green
  • Expand the Energy Efficiency Grant to more sectors

 

BUILDING A RESILIENT FUTURE

Safeguarding Energy Security

  • Establish the Future Energy Fund with an initial $5 billion injection, to invest in energy transition infrastructure

A Safe and Secure Singapore

  • Establish a new National Cybersecurity Command Centre

Forging a More United Nation

  • Build and rejuvenate sports facilities via the Sports Facilities Master Plan
  • Top up $20 million to the One Team Singapore Fund and extend it for 1 year
  • Anchor major sports events in Singapore
  • Invest $100 million in Our SG Arts Plan
  • Extend the Charities Capability Fund Collaboration Grant for 3 years
  • Pilot the Overseas Humanitarian Assistance Tax Deduction Scheme