Summary of Responses to Public Consultation on the Draft Income Tax (Amendment) Bill 2023

The Ministry of Finance (“MOF”) invited the public to provide feedback on the draft Income Tax (Amendment) Bill 2023 from 6 June to 30 June 2023. The draft Bill proposed legislative amendments to the Income Tax Act 1947 (“ITA”) to effect: (i) tax measures announced in the 2023 Budget Statement; and (ii) changes arising from international tax developments and MOF’s periodic review of Singapore’s tax system.

2. MOF received feedback on the proposed legislative amendments, in particular on the following tax changes:

a) Taxation of gains from the sale or disposal of foreign assets that are received in Singapore by businesses without economic substance in Singapore; 

b) Introduction of the Enterprise Innovation Scheme (“EIS”); and

c) Introduction of the Philanthropy Tax Incentive Scheme for Family Offices (“FOs”).

MOF’s responses to the key feedback on the proposed legislative amendments are in Annex A. 

3. The proposed legislative changes will be incorporated into the Income Tax (Amendment) Bill 2023 and presented to Parliament in September 2023. We thank all individuals and organisations for your feedback.