IRAS has increased the corporate income tax rebate to 50% and raised the cash grant and combined benefit cap to support companies’ cashflow amid energy cost pressures.
The Inland Revenue Authority of Singapore has updated its guidelines on Corporate Income Tax (CIT) rates, rebates, and tax exemption schemes, clarifying enhancements to the CIT Rebate and the CIT Rebate Cash Grant for the Year of Assessment (YA) 2026.
The update is aimed at providing additional support to companies through these measures to help them manage cashflow pressures amid rising energy prices arising from the Middle East conflict.
The key changes for YA 2026 are:
- Enhanced CIT rebate: increased to 50% of corporate tax payable, from the previously announced 40%.
- Enhanced CIT rebate cash grant: increased to SGD 2,000, from SGD 1,500.
- Increased maximum benefit: the total maximum benefit a company can receive from the CIT Rebate and the Cash Grant has been raised to SGD 40,000, from SGD 30,000.
To qualify for the CIT Rebate Cash Grant, a company must be active at the point of disbursement and meet the local employee condition. This means the company must have made CPF contributions for at least one local employee, either a Singapore citizen or permanent resident, excluding shareholder-directors, in calendar year 2025.
Eligible companies will receive the Cash Grant automatically by the second quarter of 2026. The Inland Revenue Authority of Singapore (IRAS) will also automatically compute and allow the CIT Rebate in the company’s YA 2026 tax assessment based on the filed ECI or Corporate Income Tax Returns.
