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Singapore: Legislative changes focus on Pillar Two

Implement refundable investment credit; incorporate updates to Pillar Two rules

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december 11, 2025

Singapore has introduced legislation aimed at enhancing its tax framework.

  • The Income Tax (Refundable Investment Credits) Regulations 2025, effective September 1, 2025, implement the refundable investment credit (RIC) as part of the 2024 budget measures to enhance Singapore's attractiveness for investments, considering the Pillar Two global minimum tax.
  • The Finance (Income Taxes) Bill 2025 was introduced in the Singapore Parliament on October 14, 2025, seeking to implement tax changes announced in the 2025 Budget in the Income Tax Act 1947 and amend the Multinational Enterprise (Minimum Tax) Act 2024 to incorporate updates to the Pillar Two rules under the international BEPS 2.0 initiative.

For more information, contact a KPMG tax professional in Singapore:

Audrey Wong | audreywong@kpmg.com.sg

Han Swee Peng | sweepenghan@kpmg.com.sg

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