Overview of Tax Changes in Singapore Budget 2022

• The GST rate will be increased in two steps:
  • from 7% to 8% with effect from 1 January 2023; and
  • from 8% to 9% with effect from 1 January 2024;
• The GST treatment for travel arranging services will be updated from 1 January 2023 so that the basis for determining whether zero-rating applies to a supply of travel arranging services will be updated, to be based on the place where the customer (i.e., the contractual customer) and direct beneficiary of the service belong:
  • if the customer of the service belongs in Singapore, the travel arranging service will be standard-rated; or
  • if the customer of the service belongs outside Singapore and the direct beneficiary either belongs outside Singapore or is GST-registered in Singapore, the travel arranging service will be zero-rated;

Source Orbitax

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