The Ministry of Finance (MOF) has initiated a public consultation on the draft Finance (Income Taxes) Bill 2025, seeking stakeholder feedback on significant proposed amendments to Singapore’s income tax framework. The consultation period runs from 18 June to 11 July 2025.
The comprehensive Bill incorporates key changes across two primary domains:
- Implementation of 2025 Budget Measures & Domestic Tax Refinements: The draft legislation formally enacts income tax adjustments announced during the 2025 Budget Statement. It also proposes further amendments stemming from the MOF’s ongoing review of the Income Tax Act 1947. These changes aim to ensure the tax regime more effectively achieves its policy objectives and enhances overall tax administration efficiency.
- Strengthening the Multinational Enterprise Minimum Tax Framework: The Bill includes critical updates to the Multinational Enterprise (Minimum Tax) Act 2024. These amendments are designed to:
- Provide necessary clarifications on the application of the OECD/G20 Pillar Two Global Anti-Base Erosion (GloBE) Model Rules.
- Expand regulatory-making powers required for the operational implementation of the GloBE Rules within Singapore. This includes alignment with evolving Commentary and administrative guidance issued by the OECD/G20 Inclusive Framework.
The MOF encourages tax professionals, businesses (particularly multinational enterprises), industry associations, and other interested parties to review the draft legislation and submit detailed feedback by the 11 July 2025 deadline. Input is crucial for refining the provisions before formal introduction to Parliament.
Source: MOF, 18 June 2025.