Enhancements to the corporate income tax rebate and cash grant for YA 2026

28 April 2026

On 7 April 2026, the Inland Revenue Authority of Singapore (“IRAS”) updated its webpage on Corporate Income Tax Rate, Rebates & Tax Exemption Schemes.

As announced in Budget Statement for 2026, to provide support for companies to manage business costs and operating challenges, a corporate income tax rebate (“CIT Rebate”) of 40% of the corporate tax payable will be granted to all taxpaying companies for Year of Assessment 2026 (“YA 2026”). Active companies that employed at least one local employee in 2025 will receive a minimum benefit of S$1,500 in the form of a CIT Rebate Cash Grant. The total maximum benefits of the CIT Rebate and CIT Rebate Cash Grant that a company may receive was S$30,000.

To provide further support for companies to manage their cashflow needs as they navigate the impact of the energy crisis, the CIT Rebate and CIT Rebate Cash Grant will be enhanced for YA 2026 as follows:

• The enhanced CIT Rebate will be 50% of the corporate tax payable; and
• The enhanced CIT Rebate Cash Grant will be S$2,000.

The total maximum benefits of the enhanced CIT Rebate and CIT Rebate Cash Grant that a company may receive for YA 2026 is S$40,000. All other parameters will remain unchanged.

The enhancements to the CIT Rebate and CIT Rebate Cash Grant were first announced by Deputy Prime Minister Gan Kim Yong in his ministerial statement delivered on 7 April 2026 on the impact of the Middle East situation.

Reference Materials

The following materials are available on the IRAS website www.iras.gov.sg and the Ministry of Trade and Industry website www.mti.gov.sg:

• Corporate Income Tax Rate, Rebates & Tax Exemption Schemes
• Ministerial Statement on the Impact of the Middle East Situation by Deputy Prime Minister Gan Kim Yong