Budget 2024: Refundable Investment Credit scheme could boost Singapore’s competitiveness

• RIC scheme reflects Republic’s seriousness in reviewing incentive, tax policies
• Move could help alleviate costs, incentivise corporates to make substantial investments in high-value activities

TAX consultants praised the Refundable Investment Credit (RIC) scheme for its potential to enhance Singapore as an attractive base of operations for multinational enterprises (MNEs).

This comes as a new regime of a global minimum tax rate of 15 per cent is set to kick in.

The scheme, a tax credit with a refundable cash feature, was announced by Finance Minister Lawrence Wong in his Budget speech. It is consistent with the Global Anti-Base Erosion Rules for Qualified Refundable Tax Credits.