The Income Tax (Amendment) Bill 2024 introduces significant changes to Singapore’s income tax regime, including measures announced in the 2024 Budget. These amendments include the introduction of a Refundable Investment Credit (RIC) scheme, which aims to attract high-value economic activities by offering tax credits to businesses that incur qualifying expenses. The Bill also proposes changes to existing tax incentives for businesses, such as a new alternative net tonnage tax for shipping entities under the Maritime Sector Incentive (MSI). This change ensures that Singapore remains competitive within the global maritime industry, aligning with international tax standards. Additionally, the Bill revises tax incentive schemes for funds managed by Singapore-based managers, extending them until December 2029 and making key changes to qualifying conditions.

The amendments aim to enhance Singapore’s attractiveness as a global business hub while keeping pace with international tax developments. Key updates also include the introduction of concessionary tax rate tiers for industries like aircraft leasing and intellectual property, aimed at fostering growth and innovation. The Bill also addresses environmental concerns, with a tax discount for shipping enterprises using “green ships.” Operational considerations are included for businesses to evaluate the new tax measures, which seek to balance compliance with incentives that promote economic growth and sustainability. These changes will be critical in shaping Singapore’s tax landscape, with a focus on maintaining its competitiveness while aligning with global tax standards.