Experts assess the impact of Singapore’s Refundable Investment Credit scheme on boosting investment and securing economic growth
Tax experts have highlighted that Singapore’s strong fiscal position, combined with the new Refundable Investment Credit (RIC) scheme introduced in Budget 2024, positions the country to attract high-value activities, despite similar initiatives being rolled out globally. The RIC, which offers refundable cash to businesses making substantial investments in key sectors, is seen as an important tool to stimulate economic activities.
The introduction of the 15% global minimum tax, part of the Base Erosion and Profit Shifting initiative (BEPS) 2.0, underscores the need for such incentives. Experts believe that adjusting the RIC to include various methods for assessing the quantum of the credit, beyond just the expenditure incurred, could make it more flexible and effective in securing high-value investments. These adjustments may help Singapore maintain its competitive edge in a changing global tax landscape.
