Significant amendments to Singapore’s income tax framework are now law following the Presidential assent of the Income Tax (Amendment) Act 2024 on 8 November 2024. The Act was officially published in the Government Gazette on 27 November 2024.
The legislation codifies several major tax changes previously announced in the Tax Budget 2024, effective for specified periods, primarily the Year of Assessment 2024 (YA 2024) and beyond. Key provisions include:
- Corporate Tax Relief: Introduction of a Corporate Income Tax (CIT) Rebate and a CIT Rebate Cash Grant for eligible companies filing for YA 2024.
- Refundable Investment Credit (RIC): Implementation of a new Refundable Investment Credit scheme designed to support strategic investments.
- Individual Tax Relief: Provision of a Personal Income Tax Rebate for resident individuals for YA 2024.
- Dependant Relief Threshold Adjustment: Amendment to raise the annual income threshold for qualifying dependants under various dependant-related reliefs.
- Section 14N Clarification: Amendment to the definition of the “specified period” within Section 14N of the Income Tax Act (relating to deductions for intellectual property rights).
- Humanitarian Support Pilot: Launch of the Overseas Humanitarian Assistance Tax Deduction Scheme on a pilot basis.
Additional Non-Budget Amendments:
Beyond the Budget measures, the Act introduces other significant tax changes:
- REIT Manager Unit Holdings: A new Section 14ZI is established, prescribing specific tax treatment for Real Estate Investment Trust (REIT) units held by the managers of those REITs.
- Reduced Compliance for Small Businesses: Sole-proprietorships and partnerships will be exempt from furnishing Estimated Chargeable Income (ECI) filings for Years of Assessment 2026 through 2030 (relevant to income earned in 2025 through 2029).
Taxpayers and advisors are advised to review the full text of the Act for detailed provisions and applicability dates for specific measures.
Source: Government Gazette, 27 November 2024.