Understanding Singapore’s Corporate Income Tax (CIT) Rebate

Singapore's Corporate Income Tax (CIT) Rebate

What Is the CIT Rebate for YA 2025?

For the Year of Assessment (YA) 2025, Singapore introduced a 50% Corporate Income Tax (CIT) Rebate, aimed at easing business costs and supporting economic resilience. The rebate is capped at S$40,000 per company, with a minimum payout of S$2,000 for firms that hire at least one local employee in the assessment year 2024.

Key Highlights of Corporate Income Tax (CIT) Rebate:

• Rebate rate: 50% of tax payable

• Cap: S$40,000 if no cash grant is received; if eligible for the S$2,000 cash grant, then the rebate cap is S$38,000

• Cash grant: S$2,000 for companies hiring ≥1 local employee in 2024

• Automatic application: Both rebate and grant are applied automatically at assessment or disbursed via cash payout in 2Q 2025

  
  

Who Qualifies for Corporate Income Tax (CIT) Rebate?

1. All active companies subject to Singapore corporate tax on taxable income.

2. Cash grant recipients: Must employ at least one Singapore Citizen or PR and contribute CPF in 2024—excluding director-shareholders

3. Listing CIT Rebate: Additionally, newly listed companies (from 19 Feb 2025 to 31 Dec 2027) on SGX may receive a 10–20% rebate on CIT for up to five years, subject to caps of S$3–6 million annually

   
   

How Much Can You Claim? Example Scenarios

Scenario	Tax Payable	Cash Grant	Rebate (50%)	Net Benefit
Small biz, no local hire	S$10,000	S$0	S$5,000	S$5,000
With local hire	S$10,000	S$2,000	S$3,000	S$5,000 total
High tax payable (~S$100K)	S$100,000	S$2,000	S$38,000*	S$40,000 total
No cash grant (no hire)	S$100,000	S$0	S$40,000	S$40,000

*Rebate capped at S$38,000 if also receiving the cash grant.

Other Tax Reliefs You Should Know

• Tax exemption schemes for SMEs and startups:

  • Start-up Tax Exemption: Up to S$125,000 exemption per YA (first 3 YAs)

  • Partial Tax Exemption: Up to S$102,500 for non-start-up companies.

• Sector-specific incentives:

  • Listings incentive: 10–20% rebate for newly listed companies, capped up to S$6 million

  • Infrastructure, financial, maritime, VCC-related schemes

• Other deductions & grants: R&D, renovation/refurbishment, double tax deductions, group-relief schemes, etc.

  
  

Claiming Process & Deadlines

• Filing window: From 5 May 2025 to 30 Nov 2025—file your Form C‑S, C‑S (Lite), or Form C via mytax.iras.gov.sg. The assessment automatically reflects rebates and grants.

• Cash grant disbursement: Expected by Q2 2025 (for YA 2025, covering 2024 activities) .

• No need for manual application: Benefits are applied automatically, provided conditions are met.

  
  

Best Practices to Maximise Benefit

1. Validate your eligibility before filing—especially the local employee condition.

2. Use Form C-S or C-S (Lite) if under thresholds (revenue ≤S$5M or ≤S$200K) for simplified filing.

3. Track CPF contributions and employee status to confirm entitlements.

4. Consider sector or listing incentives if you’re preparing for IPO or infrastructure projects.

5. Automate record-keeping and align with IRAS deadlines to avoid penalties.

   
   

Final Take on Corporate Income Tax (CIT) Rebate

Singapore’s enhanced Corporate Income Tax (CIT) Rebate and cash grant for YA 2025 represent a strategic move to bolster corporate resilience. Whether you're a micro-SME, a growing enterprise, or preparing for a public listing, there's a tailored benefit pathway waiting. By planning ahead and aligning with eligibility criteria, you can ensure your business secures the maximum refund or savings available.

Need help navigating your company’s eligibility or optimizing your tax position?

➡️Contact us for a Free Consultation Today to make the most of your 2025 tax benefits.