Singapore Brings Refundable Investment Credits Regime Into Force

The Singapore government brought the Income Tax (Refundable Investment Credits) Regulations 2025 (S 577/2025) into force on 1 September, which introduce tax credits of up to 50% for qualifying business investments under the Global Anti-Base Erosion (GloBE) Rules of the OECD/G20 Pillar Two framework.

Pillar Two consists of two main rules that seek to ensure that multinationals pay a minimum level of tax on their profits. The GloBE Rules are the main Pillar Two Rules and apply a 15% minimum rate of tax on in-scope multinationals on their foreign profits.

The refundable investment credit (RIC) scheme was introduced by the Singapore government in 2024 to enhance Singapore's attractiveness for investment by encouraging companies to make sizeable investments that bring substantive economic activities to Singapore in key economic sectors and new growth areas.