Budget 2026: Companies to get 40% corporate income tax rebate in YA2026
Companies will receive between S$1,500 and S$30,000 of benefit
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[SINGAPORE] Businesses will receive a 40 per cent corporate income tax rebate in the 2026 year of assessment to help them stay competitive, said Finance Minister Lawrence Wong on Thursday (Feb 12).
Every active company that employed at least one local employee last year will receive a minimum benefit of S$1,500, he said in his Budget speech delivered in Parliament.
To meet this requirement, the company must have made Central Provident Fund contributions to at least one Singapore citizen or permanent resident employee. This excludes shareholders who are also directors of the company in the 2025 calendar year.
The total benefit for each company – which is the sum of the corporate income tax rebate and corporate income tax rebate cash grant – will be capped at S$30,000.
Eligible companies will automatically receive the benefits from the second quarter of the 2026 calendar year onwards.
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Although the Singapore economy did well last year, some businesses continue to face cost pressures and operating challenges, said Wong, who is also prime minister. “This will provide short-term relief, as we press on with our restructuring and transformation efforts.”
He had also announced a 50 per cent corporate tax rebate in last year’s Budget, for Year of Assessment 2025. Then, the minimum benefit was S$2,000, with the total benefit capped at S$40,000.
For more of BT’s Budget 2026 coverage, go to bt.sg/budget26
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