Singapore Budget 2023
Resource Centre
Advancing on a new road ahead.
The Singapore Budget 2023 statement, presented by Deputy Prime Minister and Minister for Finance, Lawrence Wong on 14 February 2023, outlines a comprehensive plan to address the concerns faced by Singaporeans and businesses, focusing on uplifting the economy and equipping workers with necessary skills, while building a stronger social compact.
We have developed a Resource Centre for Budget 2023, outlining the key tax and non-tax changes announced this year. This resource centre will be updated with new media, as well as new information and clarifications provided by the Inland Revenue Authority of Singapore (IRAS) and other government agencies on the key measures announced, as they become available. We invite you to visit again to explore the latest developments.
Budget Highlights
- Singapore plans to implement the Global Anti-Base Erosion Rules and Domestic Top-Up Tax from businesses' financial year starting on or after 1 January 2025.
- New Enterprise Innovation Scheme introduced to encourage Research and Development (R&D), innovation, and capability development activities. Tax deductions will be increased to 400% for R&D qualifying expenditure, IP registration, training expenditure, and innovation projects carried out with qualified partners until YA2028. Businesses may also opt for a non-taxable cash payout of up to S$20,000 per Year of Assessment for qualifying activities.
- Working mothers with qualifying Singapore citizen children born or adopted on or after 1 January 2024 will receive a fixed dollar tax relief instead of a percentage-based Working Mother's Child Relief.
- To enhance the progressivity of the Buyer’s Stamp Duty (BSD) regime, higher marginal BSD rates will be introduced for higher-value residential and non-residential properties.
- The Additional Registration Fee rates for cars, taxis, and goods-cum-passenger vehicles will be changed to make the vehicular tax structure more progressive, and Preferential Additional Registration Fee rebates will be capped at S$60,000.
