.svg){kind=small}
%402x.svg){kind=small}
Singapore Budget 2025
On 18 February 2025, the Prime Minister and Finance Minister, Mr. Lawrence Wong, delivered the Singapore Budget for the financial year 2025. The salient tax changes for individual and corporate taxes are as follows:
Personal Income Tax Rebate
Personal Income Tax Rebate will be granted to all tax residents for the Year of Assessment (YA) 2025. The rebate will be 60% of tax payable, capped at S$200.
Corporate Income Tax Rebate (CIT Rebate)
CIT Rebate of 50% of the corporate tax payable will be granted to all taxpaying companies, whether tax resident or not, for YA 2025. Companies that are active and have employed at least one local employee in calendar year 2024 (referred to as “local employee condition”) will receive S$2,000 in cash payout (referred to as “CIT Rebate Cash Grant”). The maximum total benefits of CIT Rebate and CIT Rebate Cash Grant that a company may receive are S$40,000.
Code of Professional Conduct and Ethics
Section 380 of the Professional Code of Ethics issued by the Institute of Singapore Chartered Accountants outlines the responsibilities and ethical considerations for professional accountants engaged in providing tax planning services. Accountants are required to uphold the fundamental principles of integrity, objectivity, professional competence, confidentiality, and professional behavior to identify, evaluate, and address ethical threats.
Tax planning services involve advising clients on structuring their financial affairs to achieve tax efficiency within the bounds of the law. While such services are legitimate, they can give rise to ethical threats, including self-interest, self-review, advocacy, or intimidation. Accountants must ensure that any tax planning arrangement has a credible legal basis and must also consider reputational, commercial, and broader economic consequences, particularly in cross-border contexts.
The section emphasizes the importance of understanding the client's business, governance structure, and intentions behind tax arrangements. Accountants must avoid involvement in illegal activities such as tax evasion and be familiar with anti-avoidance regulations. Where uncertainty exists in the interpretation of tax laws, it is essential to communicate potential risks and outcomes to the client.
Transparency, proper documentation, and effective communication are key. Accountants must clearly explain the rationale behind their advice and, where ethical standards are at risk, consider disengaging from the engagement. Involvement with third-party tax planning products requires disclosure of any professional relationships. Overall, Section 380 reinforces the accountant’s role in supporting public trust through responsible, ethical tax planning.
Reference/Citation
- Tax Changes | Inland Revenue Authority of Singapore - https://www.mof.gov.sg/docs/librariesprovider3/budget2025/download/pdf/annexh2.pdf
- Ethics Pronouncement EP 100 March 2025 | Institute of Singapore Chartered Accountants - https://isca.org.sg/docs/default-source/ep-100/eps-100/code-of-ethics-for-isca-ep-100-(mar-2025)(for-upload).pdf
