Scope and special company types
Use these YA 2026 notes alongside official filing guidance and Basic Corporate Income Tax Calculator. An acquisition-year 19 B IPR WDA claim needs its declaration via Submit Document. Long first accounts use the complete period inA and split adjusted profit/loss across YAs 2025/2026 inB, each basis≤12 months, with time apportionment if direct identification is unavailable; pre-revenue enterprise-development concession expenses go inB 8. Investment holding means long-term properties/shares earning rent/dividends/interest: no current allowances or carry-forward of current allowances/losses, and investment income usesB 14 a–16. A related-party-only service company assessed cost-plus puts deemed/actual markup inB 1; ordinary accountants, restaurants, retailers are not that category.
Part A: revenue and eligible income
Revenue is principal-activity gross income excluding separate-source interest; investment holders use investment income. First accounts over 12 months apply S$5 m threshold to final 12 months: incorporation 15 April 2024 to first closing 30 June 2025 tests 1 July 2024–30 June 2025. Income must be 17%-taxable, with exceptions for one-tier Singapore dividends and specified 13(8) foreign income. Shipping 13 A/pioneer and other exempt/concessionary income prevent eligibility. PTE/SUTE are not such excluded income. A loss company may qualify, except investment-business companies under 10 D.
Part A: excluded claims, reviewer and period
Do not claim carry-back to YA 2025, same-year group transfers, approved-project investment allowance, FTC or Singapore section 45 deducted tax on C-S. Reviewer may be agent or in-house; identify actual tax-treatment reviewer, e.g. agent tax manager before director endorsement or director reviewing accounts-officer work. Obtain SCTP Income Tax Advisor/Practitioner/Provisional Practitioner name/number; choose any one of multiple reviewers. Preceding-year basis: 31 March year-end YA 2026 is 1 April 2024–31 March 2025; correct dates to statements.
Part B items1–5: accounting-to-tax adjustments
1 is statement profit/loss before tax.2 separates rent, fixed-deposit interest and other non-trade taxable income, also in 14 a/15/16; exempt one-tier dividends go 3 instead.3 includes one-tier/13(8) income, fixed-asset sale gains, JSS and EIS cash payouts.4 adds non-revenue, not wholly/exclusively income-producing or prohibited costs: depreciation, donations, fines/private/S-plate car costs, separate-source/non-taxable-income expenses and interest on non-producing assets.5=1−2−3+4.
Renovations item6
Eligible electrical/lighting, doors, windows, fixed partitions, floors/walls exclude structural works requiring approval. From YA 2025 eligible non-structural designer/professional fees are included; cap S$300, 000 per fixed 3 years, first 2025–2027. Transition gives the full new cap even if old cycle differs. Irrevocable one-year write-off is available instead of thirds. Without acceleration, 180, 000 costsYA 2024+120, 000 YA 2025+90, 000 YA 2026 give YA 2026 claim 130, 000=60, 000 old cycle+40, 000+30, 000 new.
Deductions items7–9 and balancing item10
EIS YAs 2024–2028 covers training, partner innovation, IPR acquisition/licensing, IP registration, Singapore R&D. Elect up to 100, 000 combined eligible costs yearly into non-taxable 20% cash instead of deductions/allowances; converted costs cannot also be deducted. Enhanced deductions 7, enhanced allowances 12, discloseC.8 includes 14 A IP protection, 14 B fairs, 14 D(1) R&D with retained claim form, 14 H overseas investment, 14 U licensing and otherwise-unincluded 14 R precommencement costs.9=5−6−7−8.10 balancing charge on sold/disused previously-allowed assets is proceeds above tax written-down value capped prior allowances; proceeds below written-down value give balancing allowance in 12.
Allowance/loss balances and separate income11–17
11/13 prior allowances/losses are pre-filled references, amendable.12 includes business plant/machinery, hire-purchase enhancements, deferred allowances now claimed, EIS, IBA, LIA, IPR WDA and balancing allowances.14 a gross rent; 14 b direct revenue costs such as property-loan interest, commission, insurance, property tax, repair/maintenance and holding-company attributed statutory costs. IBA/LIA belongs 12, not 14 b.14 c negative net rent becomes zero, with excess expenses neither set against other income nor carried.15 interest and 16 other income likewise floor at zero.17=9+10−11−12−13+14 c+15+16.
Donations18–20
18 is YA 2025 carried balance less expired YA 2020 donations, amendable.19 a uses View Donations: later receipts change YA; missingUEN correct with institution for reassessment.19 b OHAS/PTIS total overseas deduction capped 40% statutory income; order PTIS 100%, OHAS 100%, local 250%. Unused overseas amounts cannot carry or group-transfer.20=17−18−19.
Part C financial-statement fields24–32
24 principal revenue/investment income; 25 revenue−COGS, equals revenue if noCOGS.26 directors’ fees/remuneration includes salary, leave, commission, bonus, gratuity, allowance, CPF but not benefits/medical/cash alternatives.27 total employee remuneration excludes directors’ fees, benefits/medical alternatives.28 deductible medical costs cap 1%, or 2% with qualifying PMBS/TMIS/Shield or ad-hoc Medisave≤2730 per employee/year and conditions. Over 1% excludes deductible/co-payment Shield riders, declare 14(6 A–C).29 travel and 30 entertainment follow statements.31 inventory/32 receivables gross if statements give it, otherwise net provision.
Continuity tests33–35
Choose N.A. in 33/34 if not using old balances. Allowances need unchanged principal activities. All old allowances/losses/donations require common ultimate shareholders holding≥50% at relevant dates: allowances last day of originatingYA, losses/donations last day of year incurred, then first day of useYA. Example YA 2019 basis 1 Oct 2017–30 Sep 2018 usedYA 2026: allowances compare 31 Dec 2019/1 Jan 2026; losses/donations 31 Dec 2018/1 Jan 2026.35 waiver under 23(5), 37(16), 37 D(15), 37 O(22) is merits-based for non-tax-motivated change and limited same-business offsets/carry-back.
Start-up exemption36
First 3 consecutive YAs exempt 75% first 100, 000+50% next 100, 000 normal 17%income. Singapore incorporation, residence inclaim YA, direct beneficial≤20 shareholders throughout: all individuals or≥1 individual with≥10%ordinary shares. Guarantee entities need all individual members or one person with≥10%winding-up contributions throughout. Post 25 February 2013 investmentholding/property development for sale/investment excluded but PTE available.15 April 2024 incorporation first accounts 30 June 2025 yields firstYA 2025 basis 15 April–30 June 2024, secondYA 2026 next 12 months, thirdYA 2027 next 12 months; the initial short basis consumes oneYA.
R&D37–39 and an original wording inconsistency
37 section 14 C net grants: Singapore R&D irrespective trade link; overseas / mixed R&D trade linked; CSA Singapore / overseas irrespective link.38 eligible Singapore; 39 staff/consumables above EIS 400, 000, before 150%multiplier. Singapore 800, 000 including staff/consumables 500, 000 plus overseas 200, 000 gives 37=1 m, 38=800, 000, 39=100, 000. The page 8 footnote says additional 400% for first 400, 000, but pages 10–11 state additional 300% plus 100%base, total 400%. Use the latter distinction; do not add 400% to the base. Another page 8 reference to Item 38 appears in the 39 explanation; the example identifies 39 for excess costs.
Stock appropriation40 and foreign gains41
40 stock set aside as employee fixed assets or rental-investment property, or non-trade capital assets improved/converted to sale stock, requires AC Reporting Form via Submit Document under 10 J/32 A.41 covered foreign disposal gains from 1 Jan 2024 received inSingapore may be 10(1)(g), subject 10 L(8)/economic-substance/IPR rules. IPR-only 41 aN.A., b derived, c remitted; non-IPR-only aYes/No if disposals occur otherwise N.A., excluded entity b may be zero, c still records receipts; mixed a No, b/c and computation. Non-covered N.A., b/czero. C-S eligibility still requires no FTC claim.
Foreign-disposal gain timing: every table scenario
Same-year disposal/receipt: non-taxable gains remove as non-taxable income; taxable remove from separate-source accounting amount then add Other Taxable Income. Different years: disposal year remove as non-taxable income. Receipt year non-taxable gains need no profit adjustment because absent from that year’s accounts, but retain computation/schedule; taxable gains add Other Taxable Income in receipt year. Do not tax the same gain in both years.
EIS44–48 common entries and training/innovation
Requires active Singapore business inYAs 2024–28. Report eligible costs net grants/subsidies/cash conversion and additional 300% enhancement. Partial cash allowed R&D/licensing/training/partnerinnovation, not registration/acquisition; one IPR cannot split cash/enhanced.44 first 400, 000 SSG-fundable Skills Framework training fees/assessment/certification to registered provider additional 300% atop 100%.45 direct collaboration andcompany beneficiary, first 50, 000 innovation total 400%; activities R&D, engineering/design/creative, IP, software/database; partners five polytechnics, ITE, SIMTech A*STAR SIMTech SIMTech Precision Engineering COI.
EIS intellectual property and R&D
46 a acquisition 19 B WDA and 46 b licensing 14 U deduction share 400, 000 cap with additional 300% atop 100%.47 businessIP registration requires legal/economic ownership and≥1 year holding or claw-back; first 400, 000 additional 300% atop 14 A 100%.48 Singapore R&D staff/consumables first 400, 000 additional 300% atop 14 C 100%, excessadditional 150%.
Annex: complete accounting-to-tax example
Profit 150, 000−foreigninterest 6, 900−grossrent 36, 000−fixed asset sale gain 1, 000=106, 100. Adddepreciation 1, 500+donations 350+rent expenses 5, 000+fines 600+S-plate 180=7, 630 →adjusted 113, 730. Lessold allowances 2, 000/current 3, 000/old loss 1, 000=107, 730. Rent net 31, 000+remitted interest 6, 900 gives 145, 630 before donations. Less old donations 1, 250+approved 240×2.5=600 gives 143, 780. PTE 7, 500+66, 890=74, 390 leaves 69, 390; 17%11, 796.30. Half rebate 5, 898.15 less 2, 000 cash grant=3, 898.15, remaining tax 7, 898.15. If SUTE eligible, exempt 75, 000+21, 890=96, 890 instead. Donations toIPC/nonIPCfirst added back; only approved deduction separately allowed.
YA2026 rebate and local employee grant
The source gives 50%CIT rebate and minimum 2, 000 cash grant for active companies with≥1 local employee in 2025; combinedmaximum 40, 000. Local condition meansCPF for≥1 citizen / PR employee excluding shareholders who are also directors. Active business includesholding investments at disbursement; inactive includesno business/investment, liquidation, receivership over all property orceased existence. Amalgamating company not eligible after ceasing; amalgamated company eligible if conditions met. These are source’s YA 2026 values, undatedpermanentrebate not an undated permanent rebate undatedpermanentrebate.
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
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