Singapore Budget 2025, delivered on 18 February 2025, provided further cost relief while supporting workforce and business transformation. Key measures for businesses:
Cost Support
- CIT Rebate (YA 2025): 50% of tax payable, capped at S$40,000.
- CIT Rebate Cash Grant: Minimum S$2,000 for active companies that employed at least one local employee in 2024.
- Progressive Wage Credit Scheme: Co-funding raised to 40% for 2025 (from 30%) and 20% for 2026 (from 15%).
Workforce
- SkillsFuture Enterprise Credit: Redesigned as an online S$10,000 credit for eligible employers with at least three resident employees, available from the second half of 2026.
- SkillsFuture Workforce Development Grant: New grant funding up to 70% of job redesign costs.
Tax
- Cost-sharing arrangements: New tax deduction for payments under approved innovation cost-sharing agreements.
- Employee equity-based remuneration: From YA 2026, deductions extended to new shares issued by a holding company.
- Extensions: Double Tax Deduction for Internationalisation and the Mergers & Acquisitions scheme extended.
Innovation and Productivity
- Enterprise Compute Initiative: Up to S$150 million to help firms adopt AI tools with cloud providers.
- National Productivity Fund: S$3 billion top-up.
Contact us to assess how Budget 2025 affects your business.