In Singapore, companies will receive a 50% corporate income tax rebate for the 2025 assessment year, as announced by Prime Minister and Finance Minister Lawrence Wong. Eligible firms, which must have at least one local worker in 2024, will also get a cash grant of S$2,000, with total benefits capped at S$40,000. Payments will be made automatically from the second quarter of 2025.
The government will also increase support for businesses that raise the salaries of lower-wage workers through the Progressive Wage Credit scheme. The co-funding level for wage increases will rise from 30% to 40% this year, and decrease to 20% next year while maintaining a higher rate of 50% in 2024. This support targets workers earning average monthly wages of up to S$4,000, provided there is an increase of at least S$100 each year. If an employer maintains the wage increase from one year to the next, co-funding will extend to both years. These initiatives demonstrate the government’s commitment to easing financial burdens on businesses while promoting investments in workforce welfare, especially for lower-wage employees. By providing tax rebates, cash grants, and wage co-funding, Singapore aims to bolster economic stability and encourage responsible business practices.
Read the original article here: https://www.channelnewsasia.com/singapore/budget-2025-corporate-income-tax-progressive-wages-4944546