BoardRoom’s Insights: Key Takeaways from the Latest Tax Budgets in Singapore & Hong Kong, and Malaysia’s E-Invoicing Extension for Businesses
Welcome to the latest edition of BoardRoom’s Asia Tax Insights. In this issue, we break down the key tax measures announced in the recent budgets for Singapore and Hong Kong, highlighting the crucial key changes businesses and individuals should be aware of.
Additionally, Malaysia’s Finance Minister II, Datuk Seri Amir Hamzah Azizan, has announced a 6-month extension for companies with annual turnovers below RM500,000 to comply with the upcoming e-invoicing requirements. Read on for the full details and what this means for your business.
Singapore
Recap of Singapore Budget 2025 Commentary
The 2025 Budget, announced by Singapore’s Prime Minister and Minister of Finance, Mr Lawrence Wong, on 18 February 2025, introduces new tax measures that are aligned with the Forward Singapore agenda.
These measures encourage collaboration among businesses, individuals, and the government, to drive sustainable economic growth, whilst addressing current challenges and building a more inclusive, shared future.
Read our report to discover more on:
Corporate Income Tax (CIT) rebate for new corporate listings and enhanced Concessionary Tax Rates (CTR) for fund manager listings
Tax deductions for payments under approved cost-sharing agreements for innovative activities
New CTR tiers under the Financial Sector Incentive (FSI) Scheme
Extensions of withholding tax exemptions for ship and container lease payments to non-resident lessors
GST remissions for Real Estate Investment Trusts (REITs) and Singapore-Listed Registered Business Trusts (RBTs)
Enhancements to the Personal Income Tax Rebate as part of the SG60 package, and more
On 26 February 2025, Financial Secretary Paul Chan presented Hong Kong’s 2025-26 Budget, focusing on “Accelerating Development through Reform and Innovation".
The budget outlines a fiscal consolidation plan to address a projected HK$87.2 billion deficit by 2028-29, and introduces tax measures to boost resilience, support new industries, and enhance competitiveness.
Our Hong Kong 2025-26 Budget Commentary analyses key tax measures such as:
Introducing Global Minimum Tax and expanding the tax treaty network
Enhancing additional profits tax relief and targeted incentives for maritime services, family offices and intellectual property transactions
Introducing one-off salaries tax relief
Reducing stamp duties and extending rates concessions for property-related transactions, and more
Companies in Malaysia Get a 6-Month E-Invoicing Extension
Malaysia’s Finance Minister II, Datuk Seri Amir Hamzah Azizan, has recently announced a 6-month extension for companies with annual revenue between RM150,000 and RM500,000 to comply with mandatory e-invoicing. The new deadline is set for 1 January 2026, providing over 240,000 companies additional time to prepare for the transition.
Quick recap of e-invoicing implementation phases:
Phase 3 of e-invoicing implementation (for businesses with annual revenue exceeding RM500,000 and up to RM25 million) will start on 1 July 2025, following Phase 1 (for businesses with annual revenue exceeding RM100 million) and Phase 2 (for businesses with annual revenue exceeding RM25 million and up to RM100 million). Exemptions apply to businesses with annual revenue below RM150,000.
The new extension till 1 January 2026 addresses concerns about readiness of businesses with annual revenue below RM 500,001.
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