MOF Consults on Proposed Amendments to Income Tax Act

On 6 June 2023, the Ministry of Finance (“MOF”) announced a public consultation on 33 proposed amendments to the Income Tax Act 1947 (“ITA”) by way of the Income Tax (Amendment) Bill 2023 (“Bill”). The consultation covers:

• 19 proposed amendments to implement tax measures announced in the 2023 Budget Statement; and

• 14 proposed amendments arising from international tax developments and MOF’s periodic review of Singapore’s tax system.

The consultation will run from 6 June to 30 June 2023, and MOF will publish a summary of comments together with MOF’s response in August 2023.

In this Update, we highlight key amendments that have been proposed. Out of all the proposed changes, the change that could perhaps have the most implications is the taxation of gains from the sale of foreign assets received in Singapore by businesses without economic substance in Singapore, which is detailed below.