Prime Minister Lawrence Wong has announced a 50% corporate income tax rebate, to help businesses affected by higher prices, such as rent and labour costs.
This rebate will be capped at $40,000.
For non-profitable companies that will not be eligible for the rebate, they will be provided with a minimum benefit of $2,000, capped at $40,000 per company. Elligible organisations must be an active company that employed at least one local employee in 2024.
Lower wage workers will also receive some support under the Progressive Wage Credit Scheme. The co-funding levels for wage will be increased from 30% in 2025 to 40% and from 15% in 2026 to 20%.
Furthermore, to help enterprises scale up, execute growth plans and compete globally, Wong announced support schemes for internationalisation and M&A.
EDB will be launching a Global Founder Programme later this year to tap the agency’s close links with entrepreneurs and encourage founders to anchor and grow new ventures in Singapore.
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Wong also announced up to $150 million to be put aside for a new Enterprise Compute Initiative to help firms tailor AI solutions and integrate them into their business processes.
A new $1 billion Private Credit Growth Fund will also be introduced to provide more financing options for high-growth local enterprises.
Attracting IPOs
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The government will introduce tax incentives for Singapore-based companies and fund managers that choose to list in Singapore, a recommendation from the equities market review group.
To promote more investment in Singapore’s capital markets, a tax incentive will also be implemented for fund managers that invest substantially in Singapore-listed equities.
Follow the market’s reaction to Budget 2025 on The Edge Singapore.
