Tax incentive schemes are legislated. The schemes have sunset clauses and the Government regularly reviews them to ensure their relevance. Over the years, we have removed or updated tax incentive schemes.
Tax incentives are granted for a limited period to businesses that conduct substantive activities or have substantive business plans to establish or expand their operations in Singapore, for the qualifying activities. Economic agencies engage the businesses to ensure their value contribution. Incentive recipients are required to significantly contribute to the deepening of activities and creation of new capabilities and high-value skilled employment. Tax incentive recipients are subject to regular reviews of their economic contributions for the qualifying activities. A recipient who is unable to generate the required contributions will have their award terminated.