ISCA has gathered Budget commentaries from Singapore's accounting firms to help our members better understand the implications of Budget 2022. Read on to find out how Budget 2022 will impact individuals, businesses and the economy.
Commentary from BDO LLP
The Minister for Finance, Mr Lawrence Wong, announced the Budget on 18 February 2022 to strengthen Singapore’s social compact, innovation and sustainability as the country chart its new way forward post-pandemic. This bulletin summarises the key Budget announcements. - Click here to read more
Commentary from Crowe
This year’s Budget addresses the need to increase our revenue base in view of higher recurrent spending in key areas like healthcare & infrastructure, and external pressures such as the Pillar 2 GloBE rules. The approach in doing this has been practical and has balanced the need to keep our economy open and competitive to attract talent and investments.
Crowe Singapore has developed a Resource Centre for Budget 2022, outlining the key tax and non-tax changes announced this year. Links to useful external resources from the MOF, IRAS and other government agencies have been provided where applicable. The resource centre will be updated with new media, as well as new information and clarifications provided by IRAS and other government agencies on the key measures announced, as they become available. We invite you to visit again to explore the latest developments. Click here to read more
Commentary from Deloitte
Budget 2022 provides clear directives in areas that will strengthen Singapore's competitive advantage and social compact, as well as to prepare the country for a brighter and greener future. It maps out a strategy for Singapore to navigate its new future that is more volatile, unpredictable, and fast-paced, but also full of opportunities. - Click here to read more
Commentary from EY
We live in unsettling times. Changes are sudden, dynamic and oftentimes, unrelenting. Forging ahead with courage is like walking into a fog. We have a sense of what the future might hold without absolute certainty that it would pan out exactly in the way we desire. Waiting for the fog to completely lift before we act gives certainty but at what cost? We must garner first-mover advantage by taking calculated steps to invest into the future. Having a head start allows us to recalibrate as the future continues to unfold.
It is in this spirit that Singapore Budget 2022 ploughs significant investments to build the new future – as one people, one nation. These investments focus on the immediate and the years ahead. In addressing immediate needs, the Government continues to give targeted support to the hardest-hit workers and businesses. In charting a sustainable future, the measures revolve around five tenets, namely investing in new capabilities; investing in our people; advancing the green transition; renewing and strengthening our social compact; and developing a fairer and more resilient revenue structure.
What are the implications of the proposed Budget measures for you and your business? Read the insights in EY’s Singapore Budget 2022 Synopsis. - Click here to read more
Commentary from Foo Kon Tan
A responsive and expansionary budget to meet immediate and long-term challenges that strengthens our tax structure for government plans to bear fruit with investments in building capabilities, green transformation and Singapore’s social compact. Increased expenditure will be funded by minimum effective tax rates for corporates, higher marginal personal income tax rates, increased property tax rates for investment and higher end properties, and additional taxes for luxury cars. And a surprising and welcome reprieve in the form of a delayed and staggered rise in GST rates. - Click here to read more
Commentary from Grant Thornton
Grant Thornton’s Singapore Budget 2022 commentary details observations and analysis on the key tax changes that impact businesses and individuals. The commentary includes details on the possible minimum effective tax rate, funds incentive enhancement, GST increase, wealth-related taxes, personal income tax, immigration-related changes, carbon tax, and other corporate tax changes. The analysis also covers areas which could have been taken a step even further and how some measures could be improved. - Click here to read more
Commentary from KPMG
In the past two years, disruption has been an unrelenting constant. 2022 offers a way forward. As we move into an endemic reality, Budget 2022 sets out a roadmap towards business growth, fiscal resilience and sustainability.
KPMG in Singapore’s 3C framework reflects this vision: Catching the sun to grow boldly as a leader in business and ESG; Charting new orbits to navigate industry disruptions; strengthening our Core to build up talent and tech capabilities.
This is the hour for capturing opportunities at a new dawn. - Click here to read more
Commentary from Mazars
Focused on strengthening our economy and social compact, Budget 2022 seeks to place Singapore in a stronger footing to emerge out of Covid-19 stronger. The Budget is bold and comprehensive, promoting an accelerated carbon neutrality timeline and significant changes to the tax regime. A fairer approach will be adopted, leading to a system that those who earn or have more will contribute more. Covid-19 has radically altered the course of our country in many ways. Now, it is time to move beyond the crisis together and set sail into the next phase of economic growth and prosperity. - Click here to read more
Commentary from Moore Stephens
Singapore has confidently navigated the challenges of the ongoing COVID-19 pandemic. While the economic prospects are good, the road to recovery is filled with much uncertainties amidst geopolitical tensions, global supply chain concerns, global tax developments and various social economic issues. In response, Budget 2022 places strong emphasis on investing in the future for both businesses and workers, continuing to build a fair and resilient progressive tax system, supporting businesses and individuals in need, putting in place elements of wealth tax to better balance tax responsibility, catering to the health of the populace and doing its part in environment and sustainability issues. The nation’s road map to thrive in a post-pandemic world has been laid out in a holistic manner. - Click here to read more
Commentary from Nexia TS
The posturing was clear in our Finance Minister Mr Lawrence Wong’s maiden Budget speech. The need to alleviate mounting fiscal pressures has made it untenable to leave tax rates untouched and although the fiscal burden should be borne by all, those with greater means should contribute a larger share to maintain Singapore’s economic vibrancy and further strengthen its social compact. To this end, the slew of rate increases in the tax system were necessary – we expect more tax changes on the horizon as our country continues to contend with the need to keep pace with more social spending in the form of expanded help for lower-wage workers and social safety nets, while it continues its dialogue on the BEPS 2.0 inclusive framework, and ensures it remains ahead and relevant in an ever evolving borderless and digitalised world. - Click here to read more
Commentary from PwC
This year’s Budget made several key announcements that support three main themes:
Active economy – To continue supporting SMEs, by enabling them to digitalise and transform and to support our workers by various new measures.
Beautiful environment – To transition towards a greener society and prepare for green technology and emerging green sectors and strengthen our efforts to achieve net zero.
Caring society – To build more inclusive and support the low-wage workers as well as the aging population. - Click here to read more
Commentary from RSM
The focus of Budget 2022, as announced by the Finance Minister Mr Lawrence Wong, is to adopt collective resources to forge forward together, strengthen our economy and social compact, position ourselves for the upturn to achieve first-mover advantage, and seize new opportunities for growth. Please refer to our Budget Synopsis for details on the key changes: investing in new capabilities, advancing green initiatives, renewing and strengthening our social compact, and developing a fairer and more resilient revenue structure. - Click here to read more