We are pleased to share that our operations have been reorganised across new premises to better support our clients and growing team. Our offices will be located at the following addresses:
Registered Head Office
60 Paya Lebar Road
#05-01 Paya Lebar Square
Singapore 409051
Northern Service Office
12 Woodlands Square
#02-68 Woods Square (Tower 1)
Singapore 737715
Singapore's Budget 2025 introduces targeted tax and incentive measures to support businesses amid evolving global challenges. Here are some highlights of the key changes and how they may impact your business.
Corporate Income Tax Rebate & Cash Grant
To help businesses manage operating costs and maintain competitiveness, the government has introduced a Corporate Income Tax (CIT) Rebate and Cash Grant scheme for Year of Assessment (YA) 2025:
📈 Enhanced Support: Progressive Wage Credit Scheme (PWCS)
The PWCS continues to support employers in uplifting lower-wage workers, with enhanced co-funding levels announced for the next two years:
This transitional wage support helps businesses adapt to rising wages while staying competitive.
🧾 Tax Rebates at a Glance
International Expansion & Financing Support
💻 Digital Transformation & Innovation
🧓 Inclusive Employment Support
Progressive Wage Credit Scheme (PWCS)
The Progressive Wage Credit Scheme (PWCS) provides transitional wage support for employers to adjust to upcoming mandatory wage increases for lower-wage workers covered by the Progressive Wage and Local Qualifying Salary requirements and voluntarily raise wages of lower-wage workers.
The PWCS will have the following design:
The Government will co-fund wage increases of eligible resident employees from 2022 to 2026. IRAS will notify eligible employers and they can expect to receive the first payout by the 1st Quarter of 2023.
Small Business Recovery Grant (SBRG)
The Small Business Recovery Grant (SBRG) provides one-off cash for SMEs that have been most affected by COVID-19 restrictions over the past year, like those in the F&B, Retail, Tourism and Hospitality sectors.
Jobs Growth Incentive (JGI)
Enhance the progressivity of Personal Income Tax (“PIT”) of tax-resident individual taxpayers
To achieve greater progressivity, the top marginal personal income tax rate will be increased with effect from YA 2024.
Extend the WHT exemption for non-tax-resident mediators
The existing WHT tax exemption, introduced in 2015, has supported Singapore’s development as an international mediation hub. To build on the momentum, the Government will continue to support the international mediation sector through a holistic suite of policies and initiatives.
Extend the WHT exemption for non-tax-resident arbitrators
The existing WHT tax exemption, introduced in 2002, has supported Singapore’s development as an international arbitration hub. To build on the momentum, the Government will continue to support the international arbitration sector through a holistic suite of policies and initiatives.
Increase the GST rate to meet increased recurrent spending needs.
The GST rate will be increased in two steps:
a) From 7% to 8% with effect from 1 January 2023; and
b) From 8% to 9% with effect from 1 January 2024.
Owner-occupied residential properties
The progressive property tax rates for owner-occupied residential properties will be revised for the portion of annual value in excess of $30,000. This change will be phased in over two years as shown below:
Non-owner-occupied residential properties
The progressive property tax rates for non-owner-occupied residential properties will be revised. This change will be phased in over two years as shown below:
Jobs Support Scheme (JSS)
Further Support for Specific Sectors
Jobs Growth Incentive’s (JGI)
Wage Credit Scheme (WCS)
High-Growth Enterprises
Mature Enterprises: Micro, SMEs and Large Enterprises
Large Local Enterprises
Extension of scheme/ support:
Other changes:
Changes of GST
Covid-19 pandemic has affected the global economies and most of the entities, directly or indirectly, which in turn has significant implications on financial reporting.
This article highlights the impact of Covid-19 on financial reporting and provide a summary of key considerations to focus on the financial statement.
Basis of Preparation of Financial Statements
1. Assessment of Going Concern
Due to the pandemic, business entities are expected to deal with many uncertainties. The assessment on the entity’s ability to continue as a going concern basis need to be disclosed in the financial statements.
The disclosure should include
If the entity has no real alternatives, but to liquidate or cease the business, it is no longer a going concern and the financial statements should have to prepared in other basis, such as “liquidation”.
2. Subsequent events disclosure (after reporting period)
The impact of Covid-19 on entities will change, but the uncertainties will remain for most of the entities.
Entities required to consider which events after the reporting date might be adjusting events and disclose the material non-adjusting event (nature of event and estimate of its financial effect).
| Adjusting event | Non-adjusting event |
|---|---|
| Provide evidence of conditions that existed at the end of the reporting period | Indicative of conditions that arise after the end of reporting period |
| Reflected in adjustment to financial statement | Do not reflected in adjustment to financial statements, but disclosure required if material Example: decline in fair value of investments, changes of asset, breaches of loan covenants, management restructuring plan, new government reliefs |
1. Impairment of non-financial assets
Economic disruption that caused by the pandemic may trigger the need for impairment testing. The disclosure is important to understand the degree of estimation uncertainty about the recoverable amount and sensitivity of the recoverable amount to possible changes.
Management may consider:
2. Fair value measurement
The fair value of an asset (or liability) should reflect market conditions at the measurement date.
Management may consider:
3. Recoverability of deferred tax assets
The projection of future taxable profits that used to assess the recoverability of deferred tax assets may affected due to the changes of forecast cash flows, changes of company’s tax strategies and government measures in response to the pandemic.
Management may consider:
4. Recoverability of revenue-cycle assets
The Covid-19 has caused adverse impact on many company’s revenue cycles due to the decrease of customer demand, customer bad debt, trade restriction, etc.
Management may consider:
5. Capitalisation of borrowing costs
There might be suspension of project due to trade restriction or disruption. Thereafter, the adjustment of interest expenses for renegotiation or modification of borrowing terms may affect the amount of eligible borrowings costs.
Management may consider:
6. Other areas
In addition with the existing requirement to maintain the Registers of Registrable Controllers (“RORC”) at registered office, Accounting and Corporate Regulatory Authority (“ACRA”) has an additional requirement for all companies, foreign companies and Limited Liability Partnerships (“LLP”), unless exempted, to lodge information on the register with ACRA via BizFile+ in July 2020. ACRA will provide Registered Filing Agents with a further notification when the transaction in Bizfile is available for lodgement.
The RORC information lodged with ACRA will be accessible to public agencies in Singapore such as law enforcement agencies. Members of the public will not be able to access the RORC information or purchase any extracts of these lodgements.
Failing to lodge RORC with ACRA when the law takes effect shall be liable upon conviction, to a fine not exceeding $5,000.
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Highlight on Corporate Tax
√ Tax rate remain at 17%
√ Tax rebate for YA 2020 granted at 25%, subject to a cap of $15,000
√ Additional 2 months of interest-free instalment if company paying CIT by Giro and file ECI within 3 months from financial year end
√ Enhanced carried-back relief system
√ Plant and Machinery
1. Option to write-off over 2 years
2. 75% in the first YA 2021 and 25% in the second YA 2022
3. No deferment of CA claims is allowed
√ Renovation and Refurbishment (R&R)
√ Capital grants
√ Schemes :
Highlight on Personal Tax
√ Personal tax rate remains with top line rate of 22% of chargeable income in excess of $320k
√ Non-resident mediators and arbitrators: Withholding Tax Exemption (WTH) will be extended until 31 March 2022
√ Non-resident public entertainers: 10% concessionary WTH will be lapsed after 31 March 2022
√ Angel Investors Tax Deduction (AITD) will be lapsed after 31 March 2020
Highlight on Property tax
Rebates available as per following :
√ 30% for accommodation and function room of hotels and service apartments, MICE space components of prescribed MICE;
√ 15% for international airport, cruise or ferry terminal and shops located in hotels and service apartments, prescribed MICE venues and premises of tourist attraction;
To attract and keep global investments, Singapore has implemented a low corporate income tax rates and various tax incentives that subsequently contribute to the economic growth.
Singapore has adopted a single-tier corporate income tax system since year 2003. That means the tax paid by a company on its chargeable income is the final tax and dividends received by the shareholders from the company will not be subject to tax.
Year of Assessment (YA) refers to the year in which income tax is calculated and charged. In Singapore, corporate tax income is assessed in the preceding year basis. For example, if the income is earned in the financial year 2018, it will be taxed in year 2019.
The corporate income tax rate has been fixed at 17% since year 2010 for both Singapore tax resident and non-Singapore tax resident companies.
Tax Exemption for new start-up companies
Qualifying conditions for new start-up companies:
The above tax exemption is however, not available to investment holding companies and properly development companies.
Corporate income tax (CIT) rebate*
The companies in Singapore must file the income tax return by the statutory filing deadline which is 30 November every year.
Notwithstanding any objection or appeal against the Notice of Assessment raised, the tax liability has to be paid within 1 month after the service of that Notice.
If the company disputes the assessment, an objection has to be made within 60 days from the date of service of the Notice of Assessment stating precisely the grounds of the objection. Otherwise, the assessment may be treated by the Comptroller as final.
Certain payment made to non-residents like interest, royalty, technical assistance, rental, directors’ fee, etc are subject to withholding tax requirements unless exempt under the double taxation agreement arrangement with various countries.
Withholding tax is not applicable on dividend payment.
