Singapore: Proposed support measures amid rising energy costs; subordinated perpetual securities treated as debt; Kenya tax treaty enters into force
Singapore-Kenya income tax treaty will take effect from January 1, 2027.
The government on April 7, 2026, delivered a ministerial statement in Parliament proposing measures to address the economic impact of the Middle East conflict, including an increase in the corporate income tax rebate for the year of assessment 2026 to 50% (from 40%), alongside targeted cash support for transport workers and additional cost‑of‑living assistance for households.
In addition, the Inland Revenue Authority of Singapore (IRAS) on April 1, 2026, issued Advance Ruling Summary No. 6/2026, providing that subordinated perpetual securities issued by a Singapore‑listed real estate investment trust trustee would be treated as debt securities for tax purposes, notwithstanding their equity classification for accounting purposes, with distributions regarded as interest.
The IRAS on April 20, 2026, also announced the entry into force of the Singapore–Kenya income tax treaty, following ratification by both countries. The treaty, which was signed on September 23, 2024, will take effect from January 1, 2027, and provide for reduced withholding tax rates on cross‑border payments such as dividends, interest, royalties, and technical fees.
For more information, contact a KPMG tax professional in Singapore:
Audrey Wong | audreywong@kpmg.com.sg
Swee Peng Han | sweepenghan@kpmg.com.sg