Singapore Company

The measures on the taxation of income in Singapore budget 2022 is summarized below. 

Minimum Effective Tax Rate Regime

• Singapore is exploring a “top-up tax”, a minimum effective tax rate regime as per Pillar Two of BEPS 2.0.
• The minimum effective tax rate regime would apply to multinational enterprise (MNE) groups in Singapore with annual revenues of at least €750 million in consolidated financial statements of the ultimate parent entity at an effective rate to 15%.

Disclosure Of Company-related Information For Official Duties

• The Inland Revenue Authority of Singapore (IRAS) would be allowed to disclose such information to a public officer at the consent of the taxpayers.
• The IRAS would also be authorized to disclose a prescribed list of identifiable information on companies to public sector agencies for purposes of the performance of official duties without the need for taxpayer’s consent. This proposed measure would require amendments to the income tax and goods and services tax (GST) legislation which may take time.

Enhance Tax Incentive Regime For Qualifying Funds

• The conditions imposed on investments in precious metals under a designated investments list would be refined, beginning 19 February 2022:
• --Investments in physical investment precious metals would not need to be incidental to trading of derivative investment precious metals. 
• --A cap would be revised to 5% of total investment portfolio for incentive awards under provisions of the income tax law.
• The Monetary Authority of Singapore (MAS) will provide further details.

Increase In Property Tax Rates For Owner-occupied Residential Properties

The property tax rates for owner-occupied residential properties with annual value above S$30,000 would increase as follows:

Beginning 1 January 2023 - the top marginal rate would increase to 23% (from 16%).

Beginning 1 January 2024 - the top marginal rate would increase to 32% (from 23%).

Increase In Property Tax Rates For Non-owner-occupied Residential Properties

The property tax rates for all non-owner occupied residential properties would increase as follows :

• Beginning 1 January 2023 - the top marginal rate would increase to 27% (from 20%)
• Beginning 1 January 2024 - the top marginal rate would increase to 36% (from 27%)

Increase In Individual (Personal) Income Tax Rates From YA 2024

Tax Residents - new chargeable income tiers and rates

• S$500,001 - S$1,000,000 – at a tax rate of 23%
• In excess of S$1,000,000 – at a tax rate of 24%

Non-tax residents

• Tax rate increased to 24% (from 22%) [other than employment income and certain income taxable at reduced withholding tax rate]

Increase In GST Rate

The GST rate would increase as bellows:

• Increase to 8%, effective 1 January 2023
• Increase to 9%, effective 1 January 2024

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