Staying up to date with Singapore tax updates 2025 is essential for individuals and businesses. The Inland Revenue Authority of Singapore (IRAS) and Budget 2025 introduced several major changes this year. Here’s what you need to know to stay compliant and maximize your tax benefits.
Tax Updates for Individuals
1. 60% Tax Rebate for Residents
All Singapore tax residents will receive a 60% rebate on income tax for the Year of Assessment 2025, capped at $200. This tax relief helps reduce your overall tax bill.
2. Higher Relief for Dependants
The qualifying income threshold for dependant relief is now $8,000 (previously $4,000). This covers spouse relief, parent relief, qualifying child relief, Working Mother’s Child Relief (WMCR), CPF cash top-up relief, and grandparent caregiver relief.
3. Fixed Working Mother’s Child Relief (WMCR)
For children born or adopted from January 1, 2024, WMCR is a fixed amount:
- $8,000 for the first child
- $10,000 for the second child
- $12,000 for the third and subsequent children
4. Simplified Filing Process
Over 1.9 million Singapore taxpayers now benefit from the No-Filing Service (NFS), including many self-employed individuals, making tax season easier than ever.
Tax Updates for Businesses
1. 50% Corporate Income Tax Rebate
Active companies receive a 50% rebate on corporate income tax, up to $40,000 for Year of Assessment 2025. Qualifying businesses with at least one local employee in 2024 also get a minimum $2,000 cash grant.
2. Renovation & Refurbishment (R&R) Cap
R&R deductions are capped at $300,000 for the 2025–2027 period, with claims now including designer and professional fees (excluding structural works).
3. Land Intensification Allowance and Section 13W Enhancements
- The shareholding threshold for LIA is now more than 50%.
- Section 13W includes preference shares and group-level shareholding assessment.
- The sunset clause has been removed for certain exemptions.
4. Share-Based Awards Deductions from YA 2026
Companies can claim tax deductions for employee share-based awards settled with newly issued shares.
5. Key Filing Deadline
Corporate tax returns for YA 2025 are due by 30 November 2025. Late filings may result in penalties up to $5,000.
GST Updates in Singapore 2025
- GST remains at 9% in 2025.
- Businesses forecasting over $1 million turnover can defer GST registration by up to two months starting July 2025.
- Some regulatory fees are now GST-exempt, but related input tax cannot be claimed.
Key Takeaways
- Individuals and businesses benefit from significant tax rebates in 2025.
- Higher thresholds for dependant relief make family support easier.
- Corporate tax and GST changes require timely compliance.
- Stay updated with IRAS resources and consult a tax professional for detailed guidance.
Act now: Review your tax situation, update your records, and ensure timely filing. For more details, visit the IRAS website or contact Terra Advisory Services.
Disclaimer: This article summarizes major tax updates for 2025 and does not constitute professional tax advice. Please consult IRAS or a tax consultant for specific guidance.