Singapore Budget 2023 – The Foreign Investor’s Ultimate Guide to Tax Highlights, EDB Scheme Changes, and PR Status
Mr. Lawrence Wong, the Deputy Prime Minister and Minister for Finance, presented the Singapore Budget 2023. The budget includes several important tax highlights that foreign investors should know, such as implementing the OECD/G20 Inclusive Framework on BEPS 2.0 Pillar Two measures in 2025 and introducing a domestic top-up tax (DTT) to raise the effective tax rate for multinational enterprises (MNE) groups in Singapore to 15%.
The budget also proposes several reviews and updates to various industry development schemes to maintain Singapore’s competitiveness in attracting and retaining investments. Once Parliament passes the Amendment Bill, and presidential consent is obtained, the budget proposals will be incorporated into the Income Tax Act.
The Global Investor Programme (GIP) grants qualifying foreign investors who aim to expand their enterprises and investments from Singapore permanent residency. This is a part of the government’s attempts to expand existing and new businesses, employ Singaporeans, and maintain Singapore’s position as a major Asian hub for high-growth technology companies and investment activities. As a result, 200 investors obtained Singapore PR status between 2020 and 2022.
High-caliber candidates have been drawn to the Global Investment Programme (GIP) due to its stability, competitive business environment, talented human pool, and global connection. This will increase job possibilities for Singaporeans, encourage business and capital growth, and benefit the asset management industry. It will also put Singapore in a better position to draw foreign investment as a premier hub for wealth management.