
BUDGET 2025: Corporate income tax rebate unveiled; National Productivity Fund boosted $3b
The government is also enhancing the Progressive Wage Credit Scheme.
Singapore is introducing a slew of rebates and funding to support enterprise growth— including an income tax rebate for corporates, expanded funding for digital transformation, and an expanded scheme to support wage increases.
The government is introducing a 50% corporate income tax rebate for 2025, capped at $40,000, said Prime Minister Lawrence Wong, speaking at the Budget 2025 announcement, 18 February.
Companies with at least one local employee in Singapore in 2024 can avail of the minimum benefit, which is $2,000.
Singapore has also expanded its national productivity fund by $3b, with a focus of boosting efforts on artificial intelligence (AI) and cloud computing.
Singapore has also unveiled a $1b Private Credit Growth Fund with the aim of supporting high-growth local enterprises with funding options.
It will allocate $150m for a new Enterprise Compute Initiative. Under this initiative, enterprises will be partnered with cloud native companies, which are expected to help the enterprises leverage artificial intelligence (AI) more effectively in their transformation journey.
For wage increases, the government is enhancing the Progressive Wage Credit Scheme by raising co-funding levels for wage increases to 40% in 2025 from 30% previously; and by 20% in 2026.