Budget 2016: Corporate income tax rebate to rise to 50% of tax payable

THE existing Corporate Income Tax (CIT) rebate will go up to 50 per cent of tax payable, up from 30 per cent currently, said Finance Minister Heng Swee Keat in Parliament on Thursday. The last time that Singapore had a 50 per cent rebate was back in 2001.

The move is targeted at helping small and medium-sized enterprises, with the government capping the rebates to S$20,000 each year for Years of Assessment 2016 and 2017.

The increased support is expected to cost the government an extra S$180 million over two years, bringing the total support given to companies under the CIT rebate to nearly S$1 billion over two years.