We have pleasure in enclosing an extract of the Singapore Budget 2023 – Tax Changes and Enterprise Disbursement, from IRAS presented in Parliament on 14 February 2023 by Deputy Prime Minister and Finance Minister Lawrence Wong for your information.
This year’s budget focus on “Moving Forward in New Era”, to help Singaporean through the high cost of living, grow Singapore economy, equipping our workers, strengthening our social compact, and building a more resilient nation. It aims to ensure that those with greater means contribute their fair share of taxes and effectively lower the tax burden of those on lower- and middle-income Singaporeans.
In summary, cash payout under the Assurance package will increase, CPF salary ceiling will be raised to S$8,000 by year 2026, buyer stamp duty rate will increase on higher-value residential and non-residential properties, while many tax incentives / schemes were extended to help businesses with the raising cost. Since the increase in GST from 7% to 8% in year 2023, there is no changes mentioned on GST in this year budget. With regard to the BEPS 2.0, as many countries has not implement the changes and some key parameters are still under discussion, the Government will implement Pillar 2 in year 2025.
Overall, the Government expect a budget deficit of S$0.4 billion or 0.1% of GDP for FY 2023.