Singapore Budget 2024, delivered on 16 February 2024, focused on helping businesses manage costs, transform and grow. Key measures for businesses:
Cost Support
- Corporate Income Tax (CIT) Rebate (YA 2024): 50% of tax payable, capped at S$40,000.
- CIT Rebate Cash Grant: Minimum S$2,000 for companies that employed at least one local employee in 2023, including loss-making companies.
- Progressive Wage Credit Scheme: Government co-funding for qualifying wage increases raised to 50% for 2024 (from 30%).
Financing and Investment
- Enterprise Financing Scheme: Working capital loan cap permanently raised to S$500,000 (from S$300,000).
- Refundable Investment Credit: New credit supporting up to 50% of qualifying expenditure for high-value investments, refundable in cash within four years if unused.
- SkillsFuture Enterprise Credit: Extended to 30 June 2025.
- Energy Efficiency Grant: Extended to more sectors, including manufacturing, construction, maritime and data centres.
Tax
- BEPS Pillar Two: Income Inclusion Rule and Domestic Top-up Tax for large multinational groups from financial years starting on or after 1 January 2025, with a 15% minimum effective tax rate.
Manpower and CPF
- Local Qualifying Salary: Raised to S$1,600 from 1 July 2024.
- Senior workers: CPF contribution rates for employees aged 55 to 65 increased by 1.5 percentage points from 1 January 2025. The CPF Transition Offset covers half of the employer’s increase for 2025.
Contact us to understand how these measures apply to your business.