Singapore – IRAS Corporate Income Tax (CIT) Rebate and Cash Grant for Year of Assessment 2025

In Budget 2025, the Singapore government introduced measures to support companies’ cash flow. The Corporate Income Tax (CIT) rate remains at 17% for both local and foreign companies. However, companies will receive relief through the CIT Rebate and CIT Rebate Cash Grant for Year of Assessment (YA) 2025.

CIT Rebate Overview

The CIT Rebate is 50% of the corporate tax payable for YA 2025. All taxpaying companies, regardless of residency status, are eligible. The total rebate and cash grant combined can provide up to $40,000 in benefits, with the amount depending on eligibility.

• Eligible for CIT Rebate Cash Grant: If a company is eligible for the CIT Rebate Cash Grant, the company will receive a minimum $2,000 rebate if the rebate is greater than $2,000.
• Not Eligible for CIT Rebate Cash Grant: Companies will receive a CIT Rebate, capped at $40,000, minus the $2,000 cash grant, if they qualify.
  
  

CIT Rebate Cash Grant

This cash grant is aimed at supporting smaller businesses. To qualify, companies must meet the following criteria:

1. Active Company: Must be carrying on a trade or business at the point of disbursement. Inactive companies, such as those under liquidation or receivership, are excluded.
2. Local Employee Condition: The company must have made CPF contributions for at least one local (Singaporean or PR) employee in 2024, excluding shareholders who are also directors.
   
   

Active companies meeting these criteria will automatically receive the cash grant by the second quarter of 2025. The grant is non-taxable. Companies can also include employees on secondment or under centralised hiring arrangements, as long as the proper documentation is provided.

Eligibility Details

• The CIT Rebate applies to income taxed at a concessionary rate, excluding final withholding tax.
• The rebate will be calculated automatically based on the company’s filing of Estimated Chargeable Income (ECI) or Corporate Income Tax Returns (Form C/Form C-S/Form C-S Lite).