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Budget 2026 gives Singapore companies a 50% CIT rebate plus S$2,000 cash grant

Budget 2026 gives Singapore companies a 50% CIT rebate plus S$2,000 cash grant

Budget 2026: 50% CIT Rebate and S$2,000 Cash Grant

The enhanced Budget 2026 support announced on 7 April 2026 provides a 50% corporate income tax rebate for YA 2026 and a S$2,000 cash grant for companies that employed at least one local employee in 2025. The combined support is capped at S$40,000.

Why this matters for founders

Early-stage founders who incorporated in Singapore and are tax-resident can stack SUTE with the Budget 2026 rebate to push their effective tax rate into the low single digits in the first years. To keep the S$2,000 cash grant, make sure at least one local (Singaporean/PR) employee was on payroll in 2025, and confirm you meet SUTE's shareholder rules (no more than 20 individual shareholders, one holding at least 10%).

Source: IRAS / Singapore Budget 2026

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