Singapore’s 2025 tax reforms are more than just regulatory adjustments—they are strategic moves designed to empower local enterprises, foster innovation, and ensure long-term competitiveness. Here’s how the latest changes from the Inland Revenue Authority of Singapore (IRAS) and Budget 2025 can positively impact your business.
1. Enhanced Corporate Tax Rebates Deliver Immediate Savings
One of the most significant Singapore tax changes 2025 is the introduction of a 50% corporate income tax rebate, capped at $40,000, for active companies. Moreover, qualifying businesses with at least one local employee in 2024 will also benefit from a minimum $2,000 cash grant. As a result, small and medium-sized enterprises (SMEs) and startups can reinvest these savings into technology, talent, and future growth.
See also: Singapore Corporate Tax Guide
2. Greater Flexibility for Expansion with Revised LIA
Furthermore, the Land Intensification Allowance (LIA) now only requires a “more than 50%” shareholding threshold. This adjustment gives businesses more flexibility in structuring related-party operations and scaling up. As a consequence, manufacturers, logistics firms, and high-growth organizations can expand more confidently.
3. Smarter Renovation & Refurbishment Deductions
Another important Singapore tax change 2025 is the new $300,000 cap for renovation and refurbishment (R&R) deductions over three years (YA2025–2027). In addition, claims now include designer and professional fees (excluding structural works). This change supports businesses that are modernizing their premises, improving customer experience, and creating more agile workspaces.
4. New Talent Retention Tools through Share-Based Awards
From YA 2026, companies can also claim tax deductions for employee share-based awards settled with newly issued shares. Consequently, this update allows for more innovative, performance-linked compensation packages, making it easier to attract and retain top talent.
5. Streamlined Compliance and Filing Processes
With the alignment of tax filing deadlines and the expanded No-Filing Service for individuals, administrative burdens for HR and finance teams are reduced. Therefore, companies have more time to focus on business planning and development.
6. Stable and Predictable GST Remains
GST remains at 9% in 2025, another important aspect of Singapore tax changes 2025. In addition, from July 2025, fast-growing businesses with turnover exceeding $1 million can defer GST registration by up to two months. This stability supports better cash flow and pricing strategies.
Read more: GST in Singapore: What Businesses Need to Know
Key Takeaways: How Singapore Tax Changes 2025 Benefit Your Business
- Direct cost savings: Corporate tax rebates and cash grants free up resources for growth.
- Expansion support: LIA and R&R changes encourage investment in infrastructure and modernization.
- Talent empowerment: New share-based award rules boost your ability to motivate staff.
- Reduced compliance pressure: Streamlined processes mean less time spent on paperwork.
- GST stability: No surprise changes—helping you plan ahead.
Frequently Asked Questions
Q1: Which companies qualify for the 50% tax rebate and cash grant?
A: All active companies, especially those with at least one local employee in 2024, are eligible. Learn more on the IRAS website.
Q2: Can I claim renovation costs for structural works?
A: No, only designer and professional fees (excluding structural works) are eligible under the new R&R deductions.
Q3: How will the LIA flexibility help my business?
A: The lower shareholding threshold makes it easier to structure related-party transactions, supporting expansion and investment.
Are you ready to leverage Singapore tax changes 2025 for your business success?
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Disclaimer: This article provides general information and does not constitute professional tax advice. Please consult IRAS or your tax advisor for guidance tailored to your business.