Singapore has long been recognized as a beacon of fiscal stability and entrepreneurial success, offering a conducive environment for local and international businesses to thrive. The unveiling of the Singapore Budget 2025 further strengthens this reputation, focusing on enhancing existing programs and introducing new strategic initiatives aimed at empowering Singapore businesses of all sizes.
These measures are designed to support the formation and incorporation of companies in Singapore, continuing to position the country as the preferred destination for startups, SMEs, and multinational corporations. This blog explores the key highlights of Singapore Budget 2025, particularly those relevant to entrepreneurs seeking to register a business in Singapore.
Schemes To Regulate Corporate Standing in Singapore
Enhanced Corporate Tax Incentives
The Singapore Budget 2025 introduces a Corporate Income Tax (CIT) Rebate and Cash Grant scheme to support businesses by improving cash flow and preparing them for economic uncertainties. The Corporate Income Tax (CIT) Rebate offers a rebate of 50% on the tax payable for all taxpaying companies in the Year of Assessment (YA) 2025, and the CIT Rebate Cash Grant is S$2,000 for qualifying companies, ensuring that even companies with minimal or no taxable income receive some support.
Eligibility for CIT Rebate Cash Grant
- The company must be active in Calendar Year (CY) 2024.
- The company must meet the local employee condition, meaning it must have contributed to CPF for at least one local employee (either a Singapore Citizen or Permanent Resident) in CY 2024. Shareholders who are also directors are excluded from this condition.
The combined benefits from the CIT Rebate and Cash Grant are capped at S$40,000 per company and will be disbursed from the second quarter of 2025.
Progressive Wage Credit Scheme (PWCS)
Under the Progressive Wage Credit Scheme (PWCS), co-funding levels for wage increases will be raised from 30% to 40% in 2025 and from 15% to 20% in 2026. This increase aims to provide transitional wage support for businesses to raise wages for lower-wage workers. The scheme co-funds qualifying wage increases for two years, provided the increase is sustained, helping businesses adapt to the Progressive Wages framework.
Support Schemes for Internationalization and Mergers & Acquisitions in Singapore
Several schemes have been enhanced to help businesses expand internationally and pursue growth through mergers and acquisitions, ensuring easier access to capital at all stages of business development.
Schemes Boosting Technological Advancement in Singapore
In line with the global trend of digital transformation, Singapore’s Budget 2025 allocates significant funding towards technological innovation. A total of S$3 billion will be injected into the National Productivity Fund to support businesses in adopting advanced technologies. Additionally, S$1 billion will be invested in biosciences and medical technology research, with a focus on establishing a new semiconductor R&D facility.
Schemes to Empower Start-up and Enterprise Network in Singapore
The Singapore government aims to attract global talent and encourage the establishment of startups through initiatives like the Global Founder Programme, which will support international entrepreneurs in scaling their businesses in Singapore. The Private Credit Growth Fund, with a budget of S$1 billion, will provide local enterprises with alternative financing solutions to fuel their growth.
Further, the new Enterprise Compute Initiative will invest S$150 million to help businesses access top-tier cloud services, AI tools, and expert consultancy to accelerate digital transformation.
Additionally, to attract more listings in Singapore, new tax incentives have been introduced for companies that list on the Singapore Exchange (SGX), including:
- A Corporate Income Tax Rebate for new corporate listings (up to 20%).
- An Enhanced 5% Concessionary Tax Rate for newly listed fund managers.
- A Tax Exemption on qualifying income from funds investing in Singapore-listed equities.
Singapore Schemes To Elevate Skill Sets
The Singapore Budget 2025 also emphasizes the importance of a skilled workforce to support business growth. Several initiatives have been enhanced to provide training and wage support:
- The SkillsFuture Level-Up Programme will provide S$4,000 in SkillsFuture Credit to Singaporeans aged 40 and above, with a monthly training allowance of up to S$3,000 for full-time courses.
- The Workfare Skills Support (WSS) Scheme will continue to offer training allowances for lower-wage workers aged 30 and above, ensuring ongoing upskilling opportunities.
Schemes Equipping Companies For Next-Generation Workforce Challenges in Singapore
To ensure businesses are prepared for the future workforce, the SkillsFuture Workforce Development Grant offers up to 70% funding for job redesign activities. The revamped SkillsFuture Enterprise Scheme will provide S$10,000 to companies with at least three resident employees, and S$200 million will be allocated to the Company Training Committee (CTC) Grant to support employer-led training.
Conclusion
The Singapore Budget 2025 reinforces the country’s position as a premier global hub for business formation and expansion. With enhanced tax rebates, improved financing options, and strong support for innovation and sustainability, Singapore remains an attractive destination for entrepreneurs, startups, and multinational corporations.
For those considering incorporation a business in Singapore, the new measures present unprecedented opportunities to establish and grow a company in a pro-business environment. Whether you are a startup founder, a foreign investor, or an established business looking to expand, Singapore’s latest initiatives provide a solid foundation for success in an increasingly competitive global market.
Contact 3E Accounting for expert guidance on incorporating your business in Singapore, navigating regulatory requirements, and leveraging the latest government incentives. Our expertise and local insights will help you achieve a smooth business setup and long-term success.
Incorporate Your Business in Singapore With Budget 2025 Benefits!
Discover how Singapore Budget 2025 supports new business incorporation with tax rebates and support initiatives. Take advantage of these financial boosts today!
Frequently Asked Questions
There are various support schemes for startups viz., the Startup SG Founder Grant, Startup SG Tech, Startup SG Equity Programme, Productivity Solutions Grant (PSG), Business Improvement Fund (BIF), Market Readiness Assistance (MRA) Grant, Economic Development Board (EDB) incentives, etc.
Additionally, Budget 2025 introduces the Private Credit Growth Fund, offering alternative funding to high-growth enterprises in Singapore, and the Global Founder Programme which aims to attract international entrepreneurs by providing resources and incentives to establish and scale businesses in Singapore.
Singapore Budget 2025 introduces key incentives to support new business formation, ease financial burdens, and drive long-term growth. The 50% Corporate Income Tax (CIT) Rebate and a Cash Grant S$2,000 for qualifying companies, ensuring financial relief even for businesses with minimal taxable income.
To attract global talent, the Global Founder Programme will encourage international entrepreneurs to establish and scale their ventures in Singapore. Additionally, businesses can benefit from funding for workforce development, job redesign initiatives, and AI adoption—enhancing digital transformation and long-term competitiveness.
The government has introduced a CIT Rebate is 50% on the tax payable for all taxpaying companies in YA 2025, a CIT Rebate Cash Grant is S$2,000 for qualifying companies, 200% tax deduction on qualifying expenses under DTDI scheme, a 200% tax deduction on transaction costs for qualifying acquisitions under its M&A scheme and tax incentives to encourage new listings in Singapore.
Yes, Budget 2025 includes funding to help businesses adopt AI-driven solutions through the Enterprise Compute Initiative, providing access to cloud services, AI tools, and high-performance computing. Also the National Productivity Fund focuses on investment in advanced technology and innovation and support enterprise and workforce transformation.
Abigail Yu
Author
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
