On 18 February 2025, Prime Minister and Minister for Finance, Mr. Lawrence Wong, unveiled Singapore’s Budget 2025 (“Budget 2025”) in Parliament, which introduces strategic measures to tackle rising business costs, strengthen Singapore’s global competitiveness, and advance sustainability goals. Against a backdrop of growing geopolitical tensions and uncertainty, Budget 2025 also recognises Singapore’s 60th year of independence with the introduction of the SG60 Package, celebrating the milestones and future aspirations of the country.
Budget 2025 includes targeted tax changes to better position Singapore as a leader in innovation, supporting business growth, technology adoption, and sustainability practices. Budget 2025 also focuses on strengthening local enterprises, developing essential worker skills, and fostering workforce equality.
Notably, Budget 2025 is expected to achieve a surplus of S$6.8 billion, or 0.9% of GDP, marking a positive shift from previous fiscal projections.
We discuss in this client alert selected fiscal measures in Budget 2025 impacting businesses and individual taxpayers. These measures are aimed at:
- supporting the growth of Singapore’s corporate sector;
- enhancing internationalisation and M&A schemes;
- strengthening Singapore’s financial services industry;
- bolstering Singapore’s maritime industry; and
- supporting individuals via Personal Income Tax rebates
