Deloitte Singapore has unveiled its recommendations for the upcoming Singapore Budget 2026, focusing on measures to help businesses navigate global uncertainties and adapt to new international tax frameworks. The proposals include refining tax frameworks for multinational enterprises (MNEs), boosting innovation, and adjusting personal tax policies to support workforce development.
Deloitte emphasises the importance of adapting to the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two framework, which impacts MNEs starting from 2025. Rohan Solapurkar, Deloitte Singapore’s Tax & Legal Leader, stated, “Tax policy becomes a strategic instrument—not merely a compliance framework but a channel through which the economy can absorb volatility and support business reinvention.”
The firm also highlights the need for Singapore to enhance its corporate tax framework to support resilience and long-term growth. Daniel Ho, Mergers & Acquisitions Tax Leader at Deloitte Southeast Asia, noted, “Budget 2026 presents an opportunity to further strengthen Singapore’s corporate tax framework in ways that support resilience, investment, and long-term enterprise growth.”
In addition, Deloitte recommends establishing a fund to assist medium-sized businesses in becoming AI-ready, alongside enhancing support for research and development (R&D) capabilities. Lee Tiong Heng, Global Investment & Innovation Incentives Leader at Deloitte Southeast Asia, suggested offering special income tax rates to attract specialised R&D talent.
As Singapore continues to position itself as a competitive investment destination, Deloitte underscores the importance of evolving the Refundable Investment Credit (RIC) to reflect global tax developments. Yvaine Gan, Global Investment & Innovation Incentives Leader at Deloitte Singapore, proposed raising the RIC support rate to 70% of qualifying expenditures to better support businesses.
These recommendations aim to bolster Singapore’s adaptability and competitiveness in an evolving global landscape.
