MOF conducts public consultation on draft Finance (Income Taxes) Bill 2025

29 July 2025

From 18 June 2025 to 11 July 2025, the Ministry of Finance (“MOF”) conducted a public consultation and sought feedback on the draft Finance (Income Taxes) Bill 2025 which proposes amendments to the Income Tax Act 1947 (“ITA”) and the Multinational Enterprise (Minimum Tax) Act 2024 (“MMTA”).

The proposed Finance (Income Taxes) Bill covers 50 amendments including:

  • Amendments to the ITA to implement tax measures announced in the 2025 Budget Statement as well as changes arising from MOF’s periodic review of the income tax system to better reflect policy objectives and to improve tax administration. Key amendments including the following.
    • Corporate Income Tax (“CIT”) rebate: To provide support for companies’ cash flow needs, a CIT Rebate of 50% of the CIT payable will be granted in Year of Assessment (“YA”) 2025. Companies that are active and have employed at least one local employee in Calendar Year 2024 will receive a minimum benefit of S$2,000 in the form of a CIT Rebate Cash Grant capped at S$40,000.
    • Personal Income Tax (“PIT”) rebate: As part of the SG60 package, a PIT rebate of 60% of tax payable will be provided to all tax resident individuals for YA 2025. The rebate will be capped at S$200 per taxpayer.
    • Tax incentives recommended by the Equities Market Review Group: To encourage new listings in Singapore and increase investment demand for Singapore-listed equities, the following tax incentives will be introduced:
      • Listing CIT rebate for new corporate listings in Singapore;
      • Enhanced concessionary tax rate of 5% for new fund manager listings in Singapore; and
      • Tax exemption on fund managers’ qualifying income arising from funds investing substantially in Singapore-listed equities.
  • Amendments to the MMTA to clarify the definitions and rules in the MMTA and provide regulation-making powers required to operate the Pillar Two Global Anti-Base Erosion Model Rules, commentary, and administrative guidance (“GloBE rules”). The proposed changes ensure that Singapore’s Multinational Enterprise Top-up Tax and Domestic Top-up Tax regime remains in accordance with the GloBE rules.

Reference materials

The following materials are available on the MOF website www.mof.gov.sg: