Singapore – Budget 2022

Tax related Key summary of changes
Personal Tax The top marginal Personal Income Tax (PIT) rates will be increased (chargeable income above SGD 500,000 and SGD 1,000,000) with effect from Year of Assessment (YA) 2024.

 

Goods and Services Tax The GST rate will be increased in two steps: a) From 7% to 8% with effect from 1 January 2023; and b) From 8% to 9% with effect from 1 January 2024.

 

The details is published at https://www.iras.gov.sg/docs/default-source/budget-2022/budget-2022—overview-of-tax-changes69937d71-ba59-4b39-b1e5-7e85b2504e1c.pdf?sfvrsn=8339ba5a_5

 

Budget 2022: Minimum salaries for Employment Pass, S-Pass holders to increase from September

 

Foreign workforce policies

  1. The qualifying salary for Employment Pass holders will be increased to S$5,000. The Financial Services sector meanwhile will continue to have a higher EP minimum qualifying salary, which will be raised to S$5,500.
  2. The minimum qualifying salary for S Pass holders will be gradually increased in phases from 2022 to 2025 for new S Pass applications.
  3. New levy framework to replace current Man-Year Entitlement framework, as well as adjustments to the Foreign Worker Levy rates for Work Permit holders in the Construction and Process sectors.
  4. The government will tighten the foreign workforce quota by lowering the Dependency Ratio Ceiling in order to reduce the construction and process sectors’ reliance on foreign workers and spur productivity improvements.

More reference from https://www.businesstimes.com.sg/government-economy/budget-2022-minimum-salaries-for-employment-pass-s-pass-holders-to-increase-from

 

Central Provident Fund

  1. Singaporean and Permanent Resident senior workers will see their Central Provident Fund contribution rates rise by 3 to 4 percentage points over the next 2 years.
  2. Employers will be given a Central Provident Fund Transition Offset that will cover half of the increase in employer’s contribution rates for older workers.
  3. From 2023 to 2027, the Basic Retirement Sum will be increased by 3.5% per year for those turning 55. This is to provide seniors with higher monthly Central Provident Fund payouts in their retirement years.

More reference from https://www.cpf.gov.sg/member/infohub/news/cpf-related-announcements/budget-highlights-2022