Budget 2026 was delivered in February 2026. The headline support for companies is a smaller tax rebate than in previous years, alongside new incentives for AI adoption and expanding overseas.
Corporate income tax rebate and cash grant
- 40% rebate on corporate income tax payable for YA 2026.
- Active companies that employed at least one local employee in 2025 receive a minimum benefit of S$1,500 as a cash grant.
- The combined rebate and cash grant is capped at S$30,000 per company, and is applied automatically from the second quarter of 2026.
Tax support for AI spending
Under the Enterprise Innovation Scheme, qualifying AI expenditure will attract a 400% tax deduction on up to S$50,000 a year for YA 2027 and YA 2028. The cash payout option does not apply to this AI category.
Help to expand overseas
- Market Readiness Assistance grant support rises to up to 70% of eligible costs (capped at S$100,000 per company per new market) from 1 April 2026 to 31 March 2029.
- The Double Tax Deduction for Internationalisation cap for expenses that need no prior approval rises from S$150,000 to S$400,000 a year from YA 2027.
Wages and foreign manpower
- Progressive Wage Credit Scheme co-funding is set at 30% for qualifying 2026 wage increases.
- The Local Qualifying Salary rises from S$1,600 to S$1,800 a month from 1 July 2026.
- Employment Pass and S Pass minimum salaries rise from 1 January 2027. See our article on MOM changes for details.