The Income Tax (Amendment) Bill 2024, introduced in Parliament on 9 September 2024, proposes significant amendments to Singapore’s Income Tax Act to align with measures announced in the 2024 Budget and global tax developments. Key proposals include the introduction of a Refundable Investment Credit (RIC) scheme to encourage high-value economic activities, the implementation of an alternative net tonnage tax for shipping entities, and the extension of tax incentives for funds managed by Singapore-based fund managers. These changes aim to enhance Singapore’s tax regime, supporting businesses in their growth, innovation, and compliance with global tax standards.

The bill also introduces revised tax incentive schemes, including new concessionary tax rate tiers for sectors such as finance, aircraft leasing, and intellectual property. For the maritime sector, a new tonnage tax regime will offer shipping enterprises the option to be taxed based on net tonnage, with discounts for using green ships. These updates, alongside extended tax incentives and enhanced administrative flexibility, are designed to strengthen Singapore’s position as an attractive business hub while supporting its green agenda and compliance with global tax rules, including OECD’s Pillar Two GloBE Model Rules.