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SINGAPORE BUDGET 2024
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Refundable Investment Credit, strong fiscal position could give Singapore edge: tax experts

Observers say more clarity needed with potential adjustments to the scheme to enhance its flexibility

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Elysia Tan

Elysia Tan

Published Sun, Feb 18, 2024 · 10:35 PM
    • RIC adjustments to include other methods to assess the quantum awarded, in addition to expenditure incurred, can help to secure high-value activities in Singapore, say observers.
    • RIC adjustments to include other methods to assess the quantum awarded, in addition to expenditure incurred, can help to secure high-value activities in Singapore, say observers. PHOTO: BT FILE

    WHILE jurisdictions elsewhere have introduced or are planning measures similar to Singapore’s new Refundable Investment Credit (RIC) scheme, the city-state’s strong track record and fiscal ability, alongside the details of the RIC, will help to boost its attractiveness, observers said.

    Finance Minister Lawrence Wong in his Budget speech last Friday (Feb 16) announced a tax credit with a refundable cash feature to encourage companies to make sizeable investments that bring substantive economic activities to Singapore, in key economic sectors and new growth areas.

    This comes ahead of a 15 per cent global minimum tax, under the Base Erosion and Profit Shifting initiative (BEPS) 2.0.

    Singapore Budget 2024Corporate taxationForeign investmentBase Erosion and Profit Shifting (BEPS)

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