Foreign Work Levy (”FWL”)

S Pass

The Tier 1 S Pass FWL rate will be progressively raised from S$330 to S$650 by 2025.

Table 1a: Current S Pass FWL Rates

Table 1b: New S Pass FWL Rates

Note:

*The S Pass sub-DRC is 18% in Manufacturing, Construction, Marine Shipyard, and Process; and 10% in Services sector.

Work Permit Holders in Construction and Process Sectors

From 1 January 2024, the FWL rates for Work Permit holders (WPHs) in the Construction and Process sectors will be adjusted. The Man-Year Entitlement (MYE) framework in both sectors will also be dismantled.

Table 2a(i): Construction Sector - Current FWL Rates

Table 2a(ii): Construction Sector - New FWL Rates from 2024

Table 2b(i): Process Sector - Current FWL Rates

Table 2b(ii): Process Sector - New FWL Rates from 2024

Note:

North Asian Sources refer to Hong Kong, Macau, South Korea, and Taiwan. Non-Traditional Sources refer to Bangladesh, India, Myanmar, Philippines, Sri Lanka, and Thailand.

Tax Administration

Facilitate Disclosure of Company-Related Information for Official Duties

Current The Inland Revenue Authority of Singapore (”IRAS”) can disclose information collected under the Income Tax Act (”ITA”) to a public officer (or any other authorised person outside the public sector who is engaged by the Government or a statutory board) for the performance of his official duties in administering any written law or public scheme, where taxpayers have provided consent.

In the absence of taxpayers’ consent, IRAS can only disclose information on taxpayers to public agencies where specific legislative exemptions have been provided (e.g., to the Department of Statistics).

Proposed The following changes to the ITA and Goods and Services Tax Act (“GSTA") will be made to facilitate the disclosure of information by IRAS for such purposes:

1. Where taxpayers have provided consent for their information to be shared, IRAS can disclose such information to a public officer (or any other authorised person outside the public sector who is engaged by the Government or a statutory board) for the performance of his official duties.
2. In addition, IRAS can disclose a prescribed list of identifiable information on companies to public sector agencies for the performance of official duties. This sharing of identifiable company-related information within the public sector will be conducted without the need for taxpayer’s consent. Any such information shared will be made less granular by IRAS to preserve the taxpayer’s confidentiality, while remaining useful to public sector agencies. For instance, the prescribed list will include the sales revenue band an identified company belongs to, but not the exact value of its sales revenue. In addition, such information will not be disclosed to any person outside the public sector even if the person is engaged by the Government or a statutory board.

Carbon Tax

Current The carbon tax rate introduced in 2019 was S$5 per tonne of emissions. This will remain unchanged until 2023.

Proposed The carbon tax rate will be raised to S$25 per tonne in 2024 and 2025, and S$45 per tonne in 2026 and 2027, with a target to reach S$50 to S$80 per tonne by 2030.

In addition, a transition framework for companies affected by the carbon tax increase will be put in place. For the framework in Singapore, the allowances will be determined based on efficiency standards and decarbonisation targets. This will help mitigate the impact on business costs, while still encouraging decarbonisation.

The government will continue to engage affected companies on the design of the framework prior to its implementation in 2024.

From 2024, the government will also allow businesses to use high-quality, international carbon credits to offset up to 5% of their taxable emissions, in lieu of paying carbon tax.

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