SINGAPORE Trends and Developments Contributed by: Lee Woon Shiu and Catherine Cheung, DBS Bank Limited
liability companies (LLCs) and partnerships, in sophis - ticated SFO structures to meet tax incentive require - ments which necessitate substantial local economic activity. Supportive tax measures and incentives Singapore’s targeted tax incentive schemes have suc - cessfully attracted significant wealth and investments from wealthy families and businesses in key industries in the past few years. The following will continue to contribute to maintaining the city-state’s competitive - ness in the finance sector: • Corporate tax: Singapore’s corporate tax rate remains one of the most competitive in ASEAN at 17% on chargeable income for both local and foreign companies, underscoring its reputation for tax certainty and policy stability. To help compa - nies manage cost pressures, a Corporate Income Tax (CIT) rebate of 40% of tax payable (capped at SGD30,000) will be granted for the year of assess - ment 2026 and this is applicable to all active tax - paying companies, whether they are tax resident or non-resident in Singapore, provided they meet the criteria. Foreign companies with taxable income in Singapore are included so long as they have at least one local employee. • Finance and Treasury Centre (FTC) incentive: To encourage companies to conduct treasury man - agement activities in Singapore, benefiting the broader financial ecosystem, the FTC incentive will be extended to 31 December 2031. The scope of the withholding tax exemption for approved FTCs is broadened to include “interest-like” borrowing costs for qualifying activities or services, applicable from 13 February 2026. • Global Trader Programme (GTP): To reinforce Singapore’s position as a leading global trading hub, the GTP scheme is extended to 31 December 2031 with an expansion of qualifying commodities to include Environmental Attribute Certificates, with effect from 13 February 2026. Philanthropy Landscape Singapore’s philanthropy landscape is becoming more strategic, institutionalised and cross-border, with the government actively positioning it as “Asia’s centre for philanthropy”. Donors (especially corporates and
UHNWIs) are shifting from ad-hoc cheques to longer- term partnerships and outcome-driven programmes, with more emphasis on measurable social impact and evidence-based philanthropy. Many are prioritising sustainable investments with environmental, social and governance (ESG) consideration for their port - folios. To ensure Singapore remains an attractive location for meaningful and structured giving, the following tax deductions and incentives continue to be available: • the 250% tax deduction for qualifying local dona - tions made to Institutions of a Public Character (IPCs) and eligible institutions, is extended until 31 December 2029. • the 250% tax deduction for corporate volunteering under the Corporate Volunteer Scheme (CVS), is extended to qualifying expenditure incurred from 1 January 2027 to 31 December 2029. • Not-for-Profit Organisation Tax Incentive (NPOTI) – designed to support charitable causes by reduc - ing tax burdens, including automatic income tax exemption for registered charities and tax-deduct - ible status for donations made to IPCs – is extend - ed to 31 December 2032. The government, aiming to establish Singapore as a prominent philanthropic hub in Asia and encourage more family offices to direct their regional and global charitable endeavours through the nation, implement - ed the Philanthropy Tax Incentive Scheme (PTIS) for family offices in January 2024. The PTIS is a strategic initiative designed to attract and foster philanthropic activities within Singapore. Under the PTIS, donors are eligible for a 100% tax deduction for overseas donations made through qualifying local intermedi - aries. This tax deduction is capped at 40% of the donor’s statutory income. Successful qualifying donors of the PTIS would be entitled to an incentive approval period of five years from the approved incentive commencement date. Intermediaries including bank-based teams and law firms, are increasingly engaged to help UHNWIs and family offices design governance, grant strate - gies via the use of donor-advised funds (DAFs) and
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