Singapore: consultation on proposed finance income taxes bill

The Ministry of Finance (MOF) conducted a public consultation on the proposed Finance (Income Taxes) Bill 2025 from 18 June to 11 July 2025, seeking input on Income Tax Act amendments and the Multinational Enterprise (Minimum Tax) Act 2024. The Bill aims to implement tax measures outlined in the 2025 Budget Statement, including incentives to promote new corporate and fund manager listings in Singapore, as well as align with OECD Pillar Two.

Key amendments to the Income Tax Act include the enhancement of section 13W to provide upfront certainty on the non-taxation of disposal gains, the introduction of a tax deduction for innovation-related cost-sharing agreements, and adjustments to transfer pricing rules. The Bill also extends several tax incentives, such as the Double Tax Deduction for Internationalisation and the Land Intensification Allowance, until 31 December 2030.

Amendments to the Multinational Enterprise (Minimum Tax) Act aim to clarify definitions and align with GloBE rules, ensuring Singapore’s compliance with international tax standards while reducing compliance burdens for businesses. MOF published a summary of responses to public feedback on 9 October 2025, addressing concerns raised during the consultation period.

The Bill was subsequently passed by Parliament on 6 November 2025, marking a significant step in Singapore’s ongoing efforts to modernize its tax framework and support economic growth.