Key tax changes in Singapore for 2025 focus on implementing a 15% global minimum effective tax rate for large multinational enterprises (BEPS Pillar 2) and providing targeted relief, including a 50% corporate tax rebate (capped at $40,000) and a 60% personal income tax rebate (capped at $200) for the Year of Assessment 2025.
50% Corporate Income Tax Rebate in Year of Assessment 2025
In addition, all taxpaying companies will get a rebate of 50% of their tax payable. The 50% rebate is capped at SGD 40,000, or SGD 38,000 if the corporate taxpayer received (or is eligible to receive) the grant.
Here's a summary of key changes for the 2025 tax year. The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent. Standard deductions increased, plus a new “bonus” deduction for older adults. Child tax credit increased to $2,200 per qualifying child.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits. What is the Rebate available under section 87A?
Singapore updates its tax system to stay competitive amid global economic challenges and geopolitical rivalries, according to Senior Minister Jeffrey Siow. Amendments to the Multinational Enterprise (Minimum Tax) Act incorporate BEPS 2.0 updates, ensuring a 15% minimum tax rate for large multinationals from 2025.
Tax treatment of non-residents. As a non-resident: You will be taxed on all income earned in Singapore; You may claim deductions on expenses and donations to save tax.
Can I avoid capital gains taxes?
Based on your annual taxable income, you will receive a new tax cut of $268 in 2026–27 and $536 in 2027–28, compared to 2024–25 tax settings. This is on top of the $1,779 you will continue to receive from the first round of tax cuts delivered in 2024–25.
Tax Relief
All Singapore Citizens (SCs) aged 21 and above in 2025 will receive $600 in SG60 Vouchers. SC seniors aged 60 and above in 2025 will receive $200 more – a total of $800 in SG60 Vouchers. See Table 1 for more details.
The major new tax law for seniors over 65 is a temporary $6,000 additional deduction (or $12,000 for couples), effective for tax years 2025 through 2028, under the One Big Beautiful Bill Act (OBBBA). This "bonus" deduction reduces taxable income and applies to individuals 65+ regardless of itemizing, phasing out for higher incomes (over $75k single/$150k joint MAGI) and offering significant relief, especially for lower-income retirees.
The 2025 income tax rates range from 0% to 24%, depending on your income level. You must file a tax return if your gross income is above $22,000 or your net business income is over $6,000. Submit your return by 18 April 2025 to avoid penalties.
Interest earned on deposits in savings, current, or fixed deposit accounts with approved banks and licensed finance companies in Singapore is exempt from tax.