As announced in Singapore's Budget 2026, a Corporate Income Tax (CIT) Rebate will be granted to all taxpaying companies for Year of Assessment (YA) 2026. This includes both tax resident and non-tax resident companies. IRAS Source.
⚡ Updated April 2026: The CIT Rebate and Cash Grant were enhanced on 7 April 2026 by Deputy Prime Minister Gan Kim Yong, in response to the economic impact of the Middle East energy situation. The figures below reflect the enhanced rates.
What is the CIT Rebate for YA2026?
The CIT Rebate reduces the amount of corporate tax a company needs to pay by 50%, up to a maximum of $40,000.
This rebate is offered to all taxpaying companies.
A portion of the CIT Rebate will be offered as a Cash Grant of $2,000 to eligible companies.
In other words, there are 2 components to the CIT Rebate:
- Cash Grant of $2,000 for eligible companies (explained below).
- A CIT Rebate of 50%. This is equivalent to getting a 50% discount on the amount of tax the company needs to pay.
All taxpaying companies are eligible for the rebate. Whether a portion is paid as a $2,000 cash grant depends on the eligibility criteria below.
What is the CIT Rebate Cash Grant?
The purpose of the Cash Grant is to provide support for smaller companies, where the CIT rebate would be less than $2,000. This ensures that eligible companies receive a minimum benefit of $2,000 in cash.
The CIT Rebate Cash Grant is not considered taxable income. It will be automatically disbursed to eligible companies by 30 June 2026.
Eligibility for the CIT Rebate Cash Grant
A company must have employed at least one local employee during calendar year 2025.
If so, they will automatically be eligible to receive the CIT Rebate Cash Grant of $2,000.
The cash grant is not taxable. In other words, so long as the company has made CPF contributions to at least one local (Singapore Citizen or Permanent Resident) employee — not including shareholders who are also directors of the company — in calendar year 2025, they will be eligible.
How the CIT Rebate Works
Note that the total benefit is capped at a maximum of $40,000 (inclusive of the CIT Rebate Cash Grant).
For all taxpaying companies:
A 50% rebate (discount) on the tax they owe.
For companies eligible for the CIT Rebate Cash Grant:
$2,000 cash will automatically be disbursed by 30 June 2026.
If the CIT rebate is less than $2,000, you'll only receive the $2,000 cash and won't receive the 50% tax reduction.
This ensures a minimum benefit of $2,000 in cash.
IRAS will compute and apply the CIT Rebate automatically based on your company's filed ECI / Form C / Form C-S / Form C-S (Lite). No separate application is needed.
Examples of the CIT Rebate
a. Corporate Income Tax Payable of $3,000.
For companies not eligible for the CIT Rebate Cash Grant:
Receive a 50% CIT Rebate of $1,500, reducing tax payable to $1,500.
For companies eligible for the CIT Rebate Cash Grant:
Normally, the company would get a 50% rebate, reducing tax payable to $1,500. However, since they qualify for the Cash Grant, they'd receive $2,000 in cash instead.
Since $2,000 is more than $1,500, the company does not receive the 50% rebate. Tax payable stays at $3,000, and the company receives $2,000 in cash.
This means companies eligible for the CIT Rebate Cash Grant will not receive the 50% rebate so long as the tax due is up to $4,000 — they will only receive the cash grant.
b. Corporate Income Tax Payable of $9,000.
For companies not eligible for the CIT Rebate Cash Grant:
Receive a 50% CIT Rebate of $4,500, reducing tax payable to $4,500.
For companies eligible for the CIT Rebate Cash Grant:
Receive a 50% CIT Rebate of $4,500, of which $2,000 is paid in cash. The remaining $2,500 reduces the tax payable.
Tax payable would be $6,500 ($9,000 minus $2,500), and the company would also receive $2,000 in cash.
The total benefit remains $4,500, of which $2,000 is in cash.
How Does YA2026 Compare to YA2024?
The YA2026 rebate (after enhancement) mirrors the YA2024 rebate in its final structure. Here's a quick comparison:
| YA2024 | YA2026 (Enhanced) | |
|---|---|---|
| CIT Rebate | 50% | 50% |
| Cash Grant | $2,000 | $2,000 |
| Total Cap | $40,000 | $40,000 |
| Local Employee Qualifying Period | Calendar year 2023 | Calendar year 2025 |
| Cash Grant Taxable? | No | No |
Note: The YA2026 rebate was initially announced at 40% with a $1,500 cash grant and $30,000 cap. It was enhanced on 7 April 2026 to the figures shown above.
Summary of CIT Rebate Benefits for YA2026
- Every taxpaying company gets a 50% rebate on their tax payable, up to $40,000.
- If the company qualifies for the cash grant, a portion of the CIT rebate will be given in cash ($2,000), even if the tax rebate would have been less than $2,000.
- No application needed — IRAS applies the rebate automatically when you file.
- The $2,000 cash grant will be disbursed by 30 June 2026 to eligible companies.
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