Singapore´s Budget 2024

    

Below we highlighted some of the major Budget announcements. 

    

The government will introduce a SGD 1.3 billion Enterprise Support Package to assist businesses. This includes a 50 percent Corporate Income Tax Rebate, capped at SGD 40,000 in the Year of Assessment 2024, and a minimum cash payment of SGD 2,000 for companies that employed at least one local employee in 2023. 

    

The government will introduce a new tax credit with a refundable cash feature which will support high-value and substantive economic activities such as the setting up or expansion of manufacturing facilities, new innovation and R&D activities, and green transition activities. 

    

All local employees must be paid at least the Local Qualifying Salary (LQS) if the employer also hires foreign workers. The LQS for full-time workers will be raised to SGD 1,600 / month or SGD 10.50 / hour. 

     

CPF contribution rates for workers aged 55 to 65 will increase by 1.5 percentage points in 2025. To ease the impact on business costs, half of this increase in employer contributions for 2025 will be provided to employers through the CPF Transition Offset. 

       

The Annual Value Bands of owner-occupier residential Property Tax rates will be raised from thresholds between SGD 8,000 and SGD 100,000 to thresholds between SGD 12,000 and SGD 140,000 with effect from 1 January 2025. 

    

Singapore will introduce two components of the second pillar of the BEPS for businesses’ financial years on or after 1 January 2025:

Singapore announced that it will introduce the first pillar of the BEPS and other components of the second pillar later.