Singapore

Ministerial Statement on 7 April 2026

On 7 April 2026, it was announced that for income year 2025 (year of assessment 2026), the corporate income tax (CIT) rebate would be increased to 50%, and the CIT rebate cash grant would be increased to 2,000 Singapore dollars (SGD) for eligible companies, subject to an increased combined (tax rebate and cash grant) cap of SGD 40,000.

2026 Budget

The 2026 Budget was announced on 12 February 2026.

Corporate tax changes proposed include:

• Corporate income tax (CIT) rebate of 40% and a CIT rebate cash grant of 1,500 Singapore dollars (SGD) for eligible companies, subject to a combined (tax rebate and cash grant) cap of SGD 30,000 for income year 2025 (year of assessment 2026).
• Enhancement to the Enterprise Innovation Scheme to incentivise adoption of artificial intelligence (AI) solutions.
• Enhancement and liberalisation of the double tax deduction for internationalisation.
• Extension of the withholding tax exemptions for the financial sector and tax incentives for finance and treasury centres, global trading companies and not-for-profit organisations.
• Extension of the 250% tax deduction for qualifying donations and qualifying expenditure incurred under the Corporate Volunteering Scheme.

For details of the 2026 Budget proposals, refer to our 2026 Budget Commentary at www.pwc.com/sg/en/publications/singapore-budget.html.