Corporate Income Tax Rate, Rebates & Tax Exemption Schemes

Key requirements

The updated YA 2026 CIT rebate is 50% of corporate tax payable, with a combined rebate and cash-grant benefit capped at S$40,000. Eligible active companies satisfying the 2025 local employee condition receive a S$2,000 cash grant; this amount is taken into account when the remaining rebate is computed, rather than added beyond the overall cap. The local employee condition excludes shareholders who are also directors. Partial tax exemption from YA 2020 covers 75% of the first S$10,000 and 50% of the next S$190,000 of normal chargeable income. The start-up exemption is a different scheme, restricted to qualifying companies’ first three consecutive YAs. Investment holding and property development companies do not qualify for that start-up scheme, although partial exemption may apply. Compare the relevant YA and all eligibility tests before estimating a tax bill.