Finance (Income Taxes) Bill introduced in Parliament
29 September 2026
On 8 September 2026, the Finance (Income Taxes) Bill 2026 (“Bill”) was tabled in Parliament.
This Bill seeks to amend the Income Tax Act 1947 (“ITA”) to implement the tax changes in the 2026 Budget Statement, and to make certain other amendments to the ITA. Among the initiatives and tax changes announced in the 2026 Budget Statement was the enhancement of the Enterprise Innovation Scheme which will support businesses in adopting AI, and an extension of the withholding tax exemptions for the financial sector. For more on the tax measures announced at Budget 2026, please refer to our article “Budget 2026: Summary of key tax changes and initiatives”.
The Bill also seeks to amend the Multinational Enterprise (Minimum Tax) Act 2024 (“MMTA”), primarily to implement the Side‑by‑Side Safe Harbour, which is part of the Organisation for Economic Co-operation and Development’s Side‑by‑Side package as approved in January 2026, and the Global Anti‑Base Erosion information return exchange framework.
Other amendments sought to be made to the MMTA include empowering the Minister for Finance to grant exemptions from the duty to furnish returns for multinational enterprise (“MNE”) top‑up tax (MTT) and domestic top‑up tax (“DTT”), and to make regulations to prescribe the circumstances where the financial accounting net income or loss (FANIL) for a financial year for DTT purposes of a constituent entity of a MNE group located in Singapore is its net income or loss as per its financial statements.
The Ministry of Finance (“MOF”) conducted a public consultation on a proposed Finance (Income Taxes) Bill from 8 June 2026 to 1 July 2026. On 2 September 2026, MOF published a summary of responses to the feedback received from the public consultation.
Reference materials
The following materials are available on the Government Gazette website www.egazette.gov.sg and the MOF website www.mof.gov.sg: