40% Corporate Income Tax ("CIT") rebate in Year of Assessment ("YA") 2026 for eligible companies
Proposed
To provide support for companies’ cash flow needs, a CIT Rebate of 40% of tax payable will be granted in YA 2026.
Companies that are active and have employed at least one local employee in Calendar Year (“CY”) 2025 (referred to as the “local employee condition”) will receive a minimum benefit of S$1,500 in the form of a CIT Rebate Cash Grant.
The total maximum benefits (i.e., sum of CIT Rebate and CIT Rebate Cash Grant) that a company can receive is S$30,000.
A company is considered to have met the local employee condition if it has made Central Provident Fund (“CPF”) contributions to at least one local (i.e., Singapore Citizen or Permanent Resident) employee, excluding shareholders who are also directors of the company, in CY 2025.
There is a slight reduction as compared with YAs 2024 and 2025, where it was set at 50% of CIT payable, with a cap of S$40,000, and a minimum benefit of S$2,000.
The CIT rebate is intended to provide support to businesses, particularly those experiencing cash flow pressures. Notwithstanding the lowering of the CIT rebate, this is still a welcome measure in managing rising operational costs.
Enhancement of the Double Tax Deduction for Internationalisation (DTDi) scheme
Current
Businesses are allowed a tax deduction of 200% on qualifying market expansion and investment development expenses under the DTDi scheme. Businesses can automatically claim 200% tax deduction on the first S$150,000 of eligible expenses for nine (9) activities per YA without prior approval.
Proposed
To further support businesses, the expenditure cap for claims without prior approval will be raised from S$150,000 to S$400,000 per YA.
The scope of claims which do not require prior approval will also be expanded to cover all eligible expenses incurred on overseas market development trips and overseas investment study trips, and the following qualifying activities:
- Investment feasibility/due diligence studies;
- Master licensing and franchising;
- Market surveys/feasibility studies;
- Overseas business development; and
- Production of corporate brochures for overseas distribution.
Businesses can continue to apply to EnterpriseSG or Singapore Tourism Board for expenses exceeding S$400,000 per YA or expenses incurred on overseas trade office and e-commerce campaigns.
The changes will apply to expenses incurred from YA 2027.
EnterpriseSG will provide more details by the second quarter of 2026.
Raising the DTDi cap for automatic claims from S$150,000 to S$400,000 and expanding the qualifying activities will encourage more businesses to venture overseas as this significantly increases the tax benefit from the 200% tax deduction and at the same time makes administration easier.
Enterprise Innovation Scheme ("EIS")
Current
Qualifying businesses can claim 400% tax deductions/allowances on qualifying expenditure incurred on the following five (5) qualifying activities:
(a) Qualifying Research and Development activities undertaken in Singapore;
(b) Registration of Intellectual Property (“IP”);
(c) Acquisition and licensing of IP rights;
(d) Training courses that are eligible for SkillsFuture Singapore funding and aligned with the Skills Framework; and
(e) Innovation projects carried out with polytechnics, the Institute of Technical Education, or other qualified partners (collectively known as partner institutions).
The qualifying expenditure cap for each YA is S$400,000 under activities (a) to (d) and S$50,000 for activity (e).
Businesses have the option to convert up to S$100,000 of total qualifying expenditure into a 20% non-taxable cash payout, in lieu of tax deductions/allowances.
Proposed
(a) The list of partner institutions will be expanded to include the Sectoral AI Centre of Excellence for Manufacturing.
(b) An additional qualifying activity will be introduced for qualifying AI expenditures. Businesses can claim tax deductions/allowances of 400% on up to S$50,000 of qualifying AI expenditures incurred for each YA. There is no option to convert qualifying expenditure into a cash payout for this new activity.
These changes will apply for YAs 2027 and 2028.
The Inland Revenue Authority of Singapore (“IRAS”) will provide more details by mid-2026.
This extension will encourage businesses to accelerate AI adoption and development in the next two (2) years.
Market Readiness Assistance (MRA) grant
Current
The MRA grant helps enterprises to expand overseas by defraying the costs of overseas market promotion, business development, and market set-up. The MRA grant is available to local Small and Medium Enterprises (“SMEs”), at a support level of up to 50% of eligible costs, capped at S$100,000 per company per new market.
The enhanced S$100,000 cap is scheduled to lapse after 31 March 2026.
Proposed
- The grant support level for local SMEs will be increased up to 70% of eligible costs. The higher support level is applicable until 31 March 2029.
- The enhanced grant cap of S$100,000 will be extended. Local SMEs will continue to receive grant support of up to S$100,000 per company per new market.
- Removal of the “new to target overseas market” criterion of the MRA grant starting from the second half of 2026, will be removed.
These changes will apply for YAs 2027 and 2028.
EnterpriseSG will provide more details by the second half of 2026.
This will be implemented as part of EnterpriseSG's refresh of its grant schemes.
Previously, the MRA grant mainly supported entry into new markets. With the enhancement, local enterprises will be able to receive grant support to deepen their presence in existing overseas markets.
Enhanced grant support levels for internationalisation scheme
Current
Under the Business Adaptation Grant, to strengthen supply chain resilience impacted by tariffs, enterprises could receive grants of up to 50% of eligible costs for SMEs, 30-40% for non-SMEs.
Similarly, the Global Innovation Alliance (“GIA”) schemes, such as GIA Discovery, GIA+, GIA Acceleration, GIA Co-Innovation, and GIA Proof-of-Concept, provided SMEs with support of up to 50% of eligible costs to facilitate overseas expansion, technology adoption, and innovation activities. Non-SMEs received comparatively lower support levels under these programmes.
Proposed
Local SMEs will receive support of up to 70% of eligible costs, and local non-SMEs will receive support of up to 50% of eligible costs from the following grants:
- Business Adaptation Grant (until 6 October 2027) - To help local enterprises impacted by tariffs to adapt their business operations and strengthen supply chain resilience through advisory and reconfiguration support.
- GIA schemes - To support Singapore-based startups to expand overseas, through participating in market access programmes and connecting with in-market experts, with a focus on technology and innovation.
These changes will apply from 1 April 2026 to 31 March 2029.
These will encourage enterprises to expand overseas by helping manage costs and risks.
Enterprise Financing Scheme ("EFS")
Current
| Loan Facility |
Purpose |
Maximum loan amount |
| EFS – SME Fixed Assets Loan |
To finance Singapore enterprises’ investments in domestic and overseas fixed assets. |
- S$30 million per borrower and borrower group
- Subject to an overall loan exposure limit of S$50 million per borrower group across all EFS facilities
|
| EFS – Trade Loan |
To support Singapore enterprises’ trade financing needs, which include the financing of short-term import, export,
and guarantee needs.
|
- S$10 million per borrower and S$20 million per borrower group
- Subject to an overall loan exposure limit of S$50 million per borrower group across all EFS facilities
|
Note:
Borrower Group consists of:
- Borrower
- Corporate shareholders holding more than 50% at all levels up
- Subsidiaries where the borrower holds more than 50% shareholdings and subsequent subsidiaries at all levels down
- Subsidiaries where the borrower’s ultimate parent company holds more than 50% shareholdings and their subsidiaries at all levels down
Proposed
From 1 April 2026, the maximum loan quantum under the EFS – SME Fixed Assets Loan and EFS – Trade Loan facilities will be enhanced, as follows:
(a) The borrower and borrower group caps for each loan facility will be lifted.
(b) Subject to an overall loan exposure limit of S$50 million per borrower group across all EFS facilities.
The EFS enables Singapore enterprises to access financing more readily across all stages of growth. By facilitating access to larger amounts of capital, the companies gain greater flexibility to finance trade activities, acquire fixed assets or strengthen cash flow to stay competitive.
Productivity Solutions Grant ("PSG")
Current
The PSG provides financial support for businesses to adopt pre-scoped IT solutions, equipment and consultancy services to improve productivity and enhance processes with technology.
Proposed
The PSG will be enhanced to provide a wider range of AI-enabled solutions.
The Ministry of Digital Development and Information ("MDDI") will share more details at the Committee of Supply 2026.
This will support businesses, regardless of size, to adopt AI solutions in their business processes.
Senior Employment Credit ("SEC")
Current
Under the SEC, wage offsets are provided to help employers that employ Singaporean workers adjust to the higher retirement age and re-employment age. Higher support will be given to the older age bands.
For wages paid between 1 January 2024 and 31 December 2026, employers will receive up to 7% of the wages for Singaporean workers aged 60 and above and earning up to S$4,000 per month, depending on their age and wage.
Proposed
The SEC will be extended for another year until 2027.
250% tax deduction for qualifying donations to Institutions of a Public Character (“IPCs”) and eligible institutions
Current
Donors are eligible for a 250% tax deduction for qualifying donations made to IPCs and eligible institutions.
The 250% tax deduction is scheduled to lapse for donations made after 31 December 2026.
Proposed
Tax deduction will be extended to qualifying local donations made from 1 January 2027 to 31 December 2029.
Corporate Volunteer Scheme ("CVS")
Current
All businesses carrying on a trade or business in Singapore can claim 250% tax deductions on qualifying expenditure (such as wages) incurred in respect of:
(a) Sending qualifying employees to volunteer at or to provide services to IPCs; or
(b) Seconding qualifying employees to IPCs. From 1 January 2024, the qualifying expenditure is subject to an annual cap of S$250,000 per business per YA and S$100,000 per IPC per CY.
The tax deduction is scheduled to lapse for expenditure incurred after 31 December 2026.
Proposed
The scheme will be extended to qualifying expenditure incurred from 1 January 2027 to 31 December 2029.
Global Trader Programme ("GTP")
Current
Under the GTP, approved global trading companies are eligible for a concessionary tax rate of 5%, 10%, or 15% on income from qualifying transactions in qualifying commodities.
The scheme is scheduled to lapse after 31 December 2026.
Proposed
a) The scheme will be extended until 31 December 2031.
b) The list of qualifying commodities will be expanded to include Environmental Attribute Certificates from 13 February 2026.
EnterpriseSG will provide more details by the second quarter of 2026.
GTP remains central to Singapore’s role as a global trading hub. With Pillar 2 introducing a 15% minimum tax, Singapore has adjusted GTP to include a 15% tier. While large multinationals may see lower net benefits, GTP continues to offer strategic value, and businesses may need to review structures to optimise the incentive under GTP.
Progressive Wage Credit Scheme ("PWCS")
i. Increase in co-funding support and extension of PWCS to end-2028
To strengthen support for employers to uplift the wages of lower-wage employees, the PWCS co-funding support will be enhanced for wage increases given in qualifying year 2026.
The enhanced co-funding support will also apply to wage increases given in qualifying year 2025 that are sustained in 2026. The PWCS will also be extended to wage increases given in qualifying years 2027 and 2028. Refer to the table below for more details.
| Qualifying year (i.e. year that wage increase was given) |
Payout period |
Current |
New |
| 2026 |
1Q 2027 |
20% |
30% (+10%-pt) |
| 2027 |
1Q 2028 |
- |
30% |
| 2028 |
1Q 2029 |
- |
20% |
ii. Increase in minimum qualifying wage increase from 2027
To better target support for businesses that invest in their workers, the minimum qualifying wage increase for PWCS will be raised to S$200 for wage increases given in qualifying years 20271 and 20282. Refer to the table below for more details.
| Qualifying year (i.e. year that wage increase was given) |
Payout period |
Minimum qualifying wage increase |
| 2026 |
1Q 2027 |
S$100 |
| 2027 |
1Q 2028 |
S$200 |
| 2028 |
1Q 2029 |
S$300 |
1 Wage increases below S$200 that qualify for PWCS in qualifying year 2026 and are sustained in 2027 will continue to be co-funded in 2027.
2 For qualifying year 2028, wage increases will only be co-funded for one year, as PWCS is scheduled to lapse after 2028.
Tax deduction for CPF cash top-ups made by platform operators on behalf of their platform workers under the Voluntary Contributions to MediSave Account scheme (“VC-MA”)
Current
Employers can claim tax deduction for CPF cash top-ups made on behalf of employees under the VC-MA. However, platform operators cannot claim tax deduction for CPF cash top-ups made on behalf of platform workers under the VC-MA.
Proposed
Platform operators will be allowed to claim tax deduction for CPF cash top-ups made on behalf of their platform workers under the VC-MA. The change will apply from YA 2027 for CPF cash top-ups made from 1 January 2026.
