Minister for Finance of Singapore delivered the Budget Statement for Budget 2022 on February 2022 in Parliament. According to the statement, the key contents of the Budget 2022 include:
Increase of Goods and Services Tax Rate
The Goods and Services Tax Rate will be increased from 7% to 8% starting from 1 January 2023. Starting from 1 January 2024, it will be increased from 8% to 9%.
Increase of Personal Income Tax Rate
Starting from the Year of Assessment 2024, the portion of chargeable income in excess of SGD500,000 up to SGD1 million will be taxed at 23%, while that in excess of SGD1 million will be taxed at 24%.
Increase of Property Tax Rate
The property tax rates for non-owner-occupied residential properties, which includes investment properties, will be increased from the current range of 10%-20% to 12%-36%.
For owner-occupied residential properties, the property tax rates for the portion of Annual Value in excess SGD30,000 will be increased from the current range of 4%-16% to 6%-32%.
Raise of Minimum Salary for EP and SP
Starting from September 2022, the minimum qualifying salary for new EP applicants will be raised from the current SGD4,500 to SGD5,000. For the financial services sector, it will be raised from the current SGD5,000 to SGD5,500.
Starting from September 2022, the minimum qualifying salary for new SP applicants will be raised from the current SGD2,500 to SGD3,000. For the financial services sector, it will be raised to SGD3,500.
Small Business Recovery Grant
A Small Business Recovery Grant for small and medium enterprises (SMEs) that have been most affected by COVID-19 restrictions over the past year, like those in F&B, retail, tourism and hospitality sectors, will be provided.
Eligible SMEs will receive a payout of SGD1,000 for each local employee up to a cap of SGD1,000 per firm.
Eligible local sole proprietorships and partnerships that do not hire any local employees will receive a flat payout of SGD1,000 as well.
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