Singapore’s Budget 2026, delivered by Deputy Prime Minister and Finance Minister Lawrence Wong on 18 February 2026, introduced a series of measures aimed at supporting businesses through a period of global economic uncertainty. For Singapore companies, the headline measure is the enhanced Corporate Income Tax (CIT) Rebate — which was further upgraded on 7 April 2026 following a review of business conditions.

This guide covers every Budget 2026 measure relevant to Singapore-incorporated companies, including the revised CIT Rebate figures, the S$2,000 cash grant for smaller companies, and the supporting schemes for workforce development, business transformation, and internationalisation.

CIT Rebate 2026: The Enhanced Package

The CIT Rebate was first announced in Budget 2026 at 40% of tax payable, capped at S$30,000. Following the Budget Supplement announced on 7 April 2026, the rebate was enhanced to:

  • 50% of CIT payable for Year of Assessment (YA) 2026
  • Capped at S$40,000 per company
  • Minimum S$2,000 cash grant for companies that employed at least one local employee in 2025 (i.e., a Singapore Citizen or Permanent Resident on CPF)

The cash grant is the most significant new element of the enhanced package. Even if a company has little or no tax payable for YA 2026, it will receive S$2,000 in cash if it has at least one local employee. This directly benefits newer companies, startups, and businesses that have been loss-making.

How the CIT Rebate Is Applied

The CIT Rebate is applied against the company’s CIT payable after the standard tax computation — i.e., after deducting exempt amounts, partial tax exemption (PTE) or startup tax exemption (SUTE), and other reliefs. The rebate is then calculated at 50% of the resulting tax figure, up to S$40,000.

Example: A company has chargeable income of S$500,000 for YA 2026. After SUTE/PTE, tax payable before rebate is S$60,000. The CIT Rebate is 50% × S$60,000 = S$30,000. Net CIT payable = S$30,000.

The rebate is automatically applied — companies do not need to apply separately. IRAS will compute the rebate when processing the company’s Corporate Income Tax Return (Form C or C-S).

Cash Grant: Who Qualifies?

The S$2,000 cash grant is available to companies that:

  • Are liable to pay CIT for YA 2026 (i.e., are active and incorporated in Singapore), and
  • Employed at least one local employee in calendar year 2025 (evidenced by CPF contributions)

Sole proprietorships and partnerships are not eligible. The cash grant will be disbursed by IRAS — companies do not need to apply separately.

Startup Tax Exemption (SUTE) and Partial Tax Exemption (PTE): Unchanged

Budget 2026 did not change the existing SUTE and PTE frameworks. These remain in place:

Startup Tax Exemption (SUTE)

New companies that qualify for SUTE receive:

  • 75% exemption on the first S$100,000 of chargeable income
  • 50% exemption on the next S$100,000

Available for the first 3 YAs, provided the company is not in financial services or investment holding. See our guide on Singapore corporate tax exemptions for full details.

Partial Tax Exemption (PTE)

For companies that no longer qualify for SUTE:

  • 75% exemption on the first S$10,000 of chargeable income
  • 50% exemption on the next S$190,000

Enterprise Development Grant (EDG) Enhancements

Budget 2026 extended and enhanced the Enterprise Development Grant, which supports Singapore companies in capability building, innovation, and internationalisation. Key updates:

  • Maximum support rate maintained at 50% for most companies (and up to 70% for projects that meet qualifying criteria)
  • Extended coverage for GenAI adoption projects, allowing SMEs to claim EDG support for integrating generative AI tools into business processes
  • Streamlined application process for projects under S$30,000

EDG is administered by Enterprise Singapore. Companies apply at enterprisesg.gov.sg.

SkillsFuture Enterprise Credit (SFEC)

The SFEC helps companies defray the out-of-pocket costs of workforce transformation. Budget 2026 confirmed that eligible companies receive S$10,000 in SFEC credits, which can be used for approved training and transformation programmes over a specified period.

Companies qualify for SFEC if they have made at least three months of Skills Development Levy (SDL) contributions in the qualifying period and have employed at least one local employee. The credit is automatically credited to qualifying companies.

Progressive Wage Credit Scheme (PWCS)

The PWCS continues to co-fund wage increases for lower-wage Singaporean workers. For 2026, the government co-funding rates are:

  • 30% of qualifying wage increases for wages up to the Progressive Wage (PW) mark thresholds
  • Automatically computed based on CPF data — no separate application required

Companies that have been increasing wages for lower-income local workers will benefit from PWCS payouts made to employers annually.

Internationalisation Finance Scheme (IFS)

For companies looking to expand overseas, the IFS provides financing support for overseas business development activities. Budget 2026 extended the IFS with:

  • Maximum loan quantum of S$50 million per borrower group
  • Government risk-share of 50% on qualifying loans
  • Available through participating financial institutions

GST Rate: Stable at 9%

Following the GST increase to 9% that took effect on 1 January 2024, Budget 2026 confirmed no further GST rate changes. Companies with annual taxable turnover exceeding S$1 million must register for GST. For businesses managing GST compliance, see our guide on GST registration in Singapore.

Property Tax Adjustments

Budget 2026 announced a one-year freeze on commercial property tax rates for qualifying SMEs occupying industrial and commercial premises. This provides temporary relief for businesses operating from higher-value commercial spaces.

Employer CPF Contribution Rate: Unchanged

The employer CPF contribution rates introduced in 2024 (for older workers) remain in place. Companies with workers aged 55–60 contribute at the rate of 17%, and those with workers aged 60–65 at 15%. Budget 2026 did not announce further increases.

What Companies Should Do Now

To make the most of Budget 2026 measures, Singapore companies should:

  • File Form C-S / C on time: The CIT Rebate and cash grant are applied automatically upon filing. Ensure your YA 2026 Corporate Income Tax Return is filed by the November 2026 deadline
  • Verify CPF records: If you employ local staff, ensure CPF contributions for 2025 were correctly made to qualify for the S$2,000 cash grant
  • Explore EDG applications: If you are undertaking digital transformation, process redesign, or overseas expansion projects, lodge an EDG application before starting the project
  • Check SFEC balance: Log in to the SkillsFuture Enterprise Credit portal to view your available balance and qualifying training programmes
  • Update your tax provision: If you have prepared a tax provision for FY2025, update it to reflect the enhanced 50% CIT Rebate and S$40,000 cap

For help with Singapore corporate tax compliance, corporate tax filing, or grant applications, our team at Singapore Secretary Services can assist.

Need help with your Singapore corporate tax or Budget 2026 grants?
Contact us at [email protected] or call/WhatsApp +65 8501 7133. We handle corporate income tax returns, tax provisions, and grant applications for Singapore companies.

Singapore Secretary Services is the corporate secretarial brand of Raffles Corporate Services, a licensed filing agent registered with ACRA.