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Answers · Corporate income tax · YA 2026 rebate · 50%, capped at S$40,000

The corporate income tax rebate for YA 2026: how much comes off, worked

For YA 2026 the corporate income tax rebate is 50% of the tax payable, capped at S$40,000 per company. An active company that made CPF contributions for at least one local employee in 2025, not counting its shareholder-directors, receives S$2,000 of that as a cash grant from IRAS, paid in full even where 50% comes to less, and the rest off the bill; a company with no such employee takes the whole 50% off the bill. Both are automatic.

On a tax bill of S$9,775.00 the rebate is S$4,887.50: S$2,000.00 paid as the grant and S$2,887.50 taken off, leaving S$6,887.50 to pay. The cap bites once the tax before rebate reaches S$80,000.00.

Computed from the rulebook Edition YA-2027 · sources verified through 24 Jul 2026

Three tax bills, worked for YA 2026

The companies

Company A, Company B and Company C: S$20,000.00, S$120,000.00 and S$700,000.00 of profit

Three Singapore Pte Ltds past their first three years, so each gets the partial tax exemption and not the start-up one, and each with a profit that needs no tax adjustment, so item 20 of Form C-S is the profit in the accounts. They are chosen to show the three places a rebate can land: under the cash grant, between the grant and the cap, and at the cap.

From the profit to the rebate, YA 2026, three companies
StepCompany A, S$Company B, S$Company C, S$
Chargeable income before exemption (item 20)20,000.00120,000.00700,000.00
Less: partial tax exemption, 75% of the first S$10,000 and 50% of the next S$190,00012,500.0062,500.00102,500.00
Chargeable income after exemption7,500.0057,500.00597,500.00
Tax at 17%1,275.009,775.00101,575.00
50% of the tax, before the cap637.504,887.5050,787.50
The rebate: 50% of the tax, or S$40,000 if less637.504,887.5040,000.00capped

Company A's rebate, S$637.50, is less than the S$2,000 grant. Company B's, S$4,887.50, is more than the grant and under the cap. Company C's 50% would be S$50,787.50, so it gets the cap, S$40,000.

With and without the grant

The same rebate, arriving two ways

How the rebate arrives, with and without the cash grant
CompanyTax, S$Rebate, S$Cash grant, S$Off the bill, S$Tax payable, S$
Company Awith a qualifying employee1,275.00637.502,000.000.001,275.00
Company Ano qualifying employee1,275.00637.500.00637.50637.50
Company Bwith a qualifying employee9,775.004,887.502,000.002,887.506,887.50
Company Bno qualifying employee9,775.004,887.500.004,887.504,887.50
Company Cwith a qualifying employee101,575.0040,000.002,000.0038,000.0063,575.00
Company Cno qualifying employee101,575.0040,000.000.0040,000.0061,575.00

With a qualifying employee, Company A takes nothing off its S$1,275.00 bill and receives the S$2,000.00 grant, which is worth more to it than its S$637.50 rebate would have been. Company B receives S$2,000.00 and takes S$2,887.50 off, so it pays S$6,887.50 instead of S$9,775.00. Company C receives S$2,000.00 and takes S$38,000.00 off, S$40,000 in all, whatever its profit above the cap. Without a qualifying employee each takes its whole rebate off the bill and receives nothing in cash.

The rate, the cap and the grant, and where each bites

The rebate is 50% of the corporate tax payable, the tax at 17% on chargeable income after the exemption. It is not a box on Form C-S: IRAS computes it from the return and allows it in the assessment, with nothing to apply for. The percentage is taken to the cent, the rounding of the IRAS tax calculator the engine is tested against.

The cap is S$40,000 per company, and it is a combined cap: the cash grant and the rebate off the bill add up to no more than S$40,000. At 50% the cap is reached when the tax before rebate is S$80,000.00, which for a company on the partial tax exemption is chargeable income before exemption of S$573,089.00. Above that the rebate is S$40,000 however large the bill.

The cash grant is S$2,000, paid by IRAS to an active company that made CPF contributions for at least one local employee in 2025, a shareholder-director not counting. It is the first S$2,000 of the rebate paid in cash rather than a separate relief: where the 50% comes to more than the grant, the excess comes off the bill; where it comes to less, the grant is the whole benefit. The two meet at a tax bill of S$4,000.00. That figure is sometimes quoted as a minimum bill for the rebate; it is not, and the rulebook entry carries no minimum.

The partial tax exemption comes first: 75% of the first S$10,000 and 50% of the next S$190,000 of chargeable income is exempt, up to S$102,500, and the 17% and then the rebate are computed on what is left. See the Form C-S computation line by line.

Every rebate the rulebook holds

The rebate is set one year of assessment at a time, in the Budget, and can change after it. The rulebook keeps every version with the dates it was in force, and a computation dated inside a closed window uses the figures of that window. This is the whole list.

Year of assessmentRebateCash grantCombined capEmployee inStatus
YA 202450%S$2,000S$40,0002023Enacted, from 16 Feb 2024
YA 202550%S$2,000S$40,0002024Enacted, from 18 Feb 2025
YA 202640%S$1,500S$30,0002025Superseded: in force 12 Feb 2026 to 6 Apr 2026
YA 2026this season50%S$2,000S$40,0002025Enacted, from 7 Apr 2026

Nothing is asserted here about YA 2027. This edition of the rulebook is verified through 24 Jul 2026 and its Budget coverage ends at YA 2026; a YA 2027 rebate, if one is enacted, is read from the next edition, and this page is rebuilt on it. Until then the engine computes YA 2027 figures on enacted law and says on the pack that a later Budget measure is not in them.

Do it in Simpler Tax

The rebate line on the Form C-S pack, computed from your own books

Post the year's documents and the Tax screen issues the Form C-S pack: item 20 from the posted entries, the exempt amount, the tax at 17%, the YA 2026 rebate with the cap applied, and the net tax to expect on the assessment. The pack takes the whole rebate off the bill, the way a company with no qualifying employee gets it; the app does not yet ask about the local employee, so a company that receives the cash grant should expect a bill above the pack's net tax by S$2,000, or by the whole rebate where that is smaller, and the S$2,000 in cash. A YA past the rulebook's Budget coverage is computed on enacted law with a note saying so, never on a guessed rebate. Simpler Tax files nothing.

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Questions people ask

How much is the corporate income tax rebate for YA 2026?

50% of the corporate tax payable, capped at S$40,000 per company. The cap covers the rebate and the S$2,000 cash grant together. On a tax bill of S$9,775.00 the rebate is S$4,887.50; the cap is reached once the tax before rebate reaches S$80,000.00.

Do I apply for the rebate, or enter it on Form C-S?

Neither. Form C-S has no rebate line; IRAS computes the rebate and allows it in the assessment from the tax on your return, with nothing to apply for. Simpler Tax prints the rebate as a line on its Form C-S pack, above the net tax, so you can check the assessment against it.

What is the CIT rebate cash grant, and who gets it?

A S$2,000 payment from IRAS rather than a reduction of the bill, for an active company that made CPF contributions for at least one local employee, a Singapore citizen or permanent resident, in 2025. A shareholder who is also a director does not count as that employee, so a company run by its owners alone gets the percentage rebate off the bill and no grant. Nothing is applied for.

If I get the cash grant, is the rebate on top of it?

The grant is the first S$2,000 of the rebate, paid in cash. Where the 50% comes to more than S$2,000, the excess comes off the bill; where it comes to less, the grant is the whole benefit and nothing comes off the bill. The break-even is a tax bill of S$4,000.00, where 50% is exactly S$2,000.

Is there a minimum tax bill before the rebate applies?

No. The rulebook entry for YA 2026 carries no minimum, and the engine computes a rebate on any tax at all: Company A's S$1,275.00 of tax earns a S$637.50 rebate. The S$4,000.00 sometimes quoted is the break-even with the cash grant, not a threshold.

Was the YA 2026 rebate changed after the Budget?

Yes. Budget 2026 announced 40% with a S$1,500 grant and a S$30,000 cap; that was superseded on 7 Apr 2026 by 50%, S$2,000 and S$40,000, which is what applies. The rulebook keeps both entries, the earlier one closed on 6 Apr 2026, so a computation dated inside that window would still use the earlier figures.

What about YA 2027?

Nothing is asserted here about YA 2027. This edition of the rulebook is verified through 24 Jul 2026 and its Budget coverage ends at YA 2026; a YA 2027 rebate, if one is enacted, is read from the next edition, and this page is rebuilt on it. Until then the engine computes YA 2027 figures on enacted law and says on the pack that a later Budget measure is not in them.

Sources

Statutory figures on this page are read from the Simpler Tax rulebook at build time, edition YA-2027, every source last checked 24 Jul 2026. The rulebook entries named below are the ones this page was computed from; the IRAS pages are what they were verified against.