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Singapore: Updated guidance on changing GST accounting periods, refundable investment credit scheme; income tax treaty with Bhutan signed

Income tax treaty with Bhutan signed on May 12, 2026.

june 30, 2026

The Inland Revenue Authority of Singapore (IRAS) published updated guidance on:

  • Changing GST accounting periods, including a clearer example on special accounting periods and a new section on how to request changes to GST accounting periods
  • Refundable investment credit (RIC) scheme, clarifying the application process, mechanisms for crediting and using RICs against corporate income tax and Pillar Two taxes (including the cash refund election and applicable timetable), sharing RICs with approved nominated companies, recovery when conditions are not met, and treatment of RICs as government grants under Singapore income tax law

In addition, the Ministry of Finance on May 12, 2026, announced that Bhutan and Singapore signed an income tax treaty. The agreement, which will enter into force after ratification by both countries, will clarify taxing rights over cross-border income, address double taxation, facilitate trade and investment flows, and include provisions for cooperation on tax matters.
 

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

Audrey Wong | audreywong@kpmg.com.sg

Swee Peng Han |  sweepenghan@kpmg.com.sg

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