Key Takeaways For Businesses And Startups
- CIT Rebate: 50% Corporate Income Tax (CIT) rebate (up to $40,000, including the below CIT Rebate Cash Grant) for the Year of Assessment (YA) 2025.
- CIT Rebate Cash Grant: The Benefit of $2,000 for active companies with at least one local employee.
- Double Tax Deduction for Internationalisation scheme: The Scheme is extended until 31 December 2030.
- Mergers and acquisitions scheme:ย The Scheme is extended until 31 December 2030.
- Section 13W of the Income Tax Act 1947 deduction: The sunset clause of 31 December 2027 will be removed for the disposal gains that take place from 1 January 2026.
- Land Intensification Allowance scheme: The Scheme is extended until 31 December 2030.
- Project and infrastructure finance: The exemption of qualifying foreign-sourced income from qualifying offshore infrastructure projects/assets received by specified entities listed on the Singapore Exchange has been extended until 31 December 2030.
- Additional Flat Component (AFC) for road tax for electric heavy goods vehicle (HGV)s and buses: The AFC will be introduced for HGVs and buses registered from 1 January 2026.
- Market Readiness Assistance (MRA) grant: The enhanced MRA grant cap of $100,000 per new market will be extended until 31 March 2026.
- Enterprise Financing Scheme (EFS): The maximum loan quantum under the EFS โ Trade Loan, which finances trade needs, will be permanently enhanced to $10m. Also, the EFS โ Mergers and Acquisitions Loan, which finances acquisitions, will be enhanced beyond equity acquisitions to support targeted asset acquisitions from 1 April 2025 until 31 March 2030.
- Incentives for hiring & workforce upskilling: Enhanced Workfare Skills Support, SkillsFuture grants, and employment credits for senior workers.
- Private Credit Growth Fund: A $1 billion fund created to help finance local companies with the promise and ambition to grow.
- From the Equities Markets Review Group, three tax incentives will be introduced:
ย ย ย ย ย (i) Listing CIT Rebate for new corporate listings in Singapore,
ย ย ย ย ย (ii) Enhanced Concessionary Tax Rate for new fund manager listings in Singapore, and
ย ย (iii) Tax exemption on fund managersโ qualifying income arising from funds investing substantially in Singapore-listed equities.
- Climate adaptation & green business initiatives: New grants and schemes for sustainability, including climate vouchers and green vehicle incentives.
- Funding for technology & innovation: A $3 billion top-up for the National Productivity Fund and an additional $1 billion will be spent to build a new national semiconductor R&D fabrication facility to boost the biosciences and medtech research infrastructure.
For the Year of Assessment (YA) 2025, businesses can benefit from a 50% Corporate Income Tax (CIT) rebate, capped at $40,000. This includes a CIT Rebate Cash Grant of $2,000 for active companies with at least one local employee
Startups can tap into the Market Readiness Assistance (MRA) grant, with an extended $100,000 per new market cap until March 2026. Additionally, the Enterprise Financing Scheme (EFS) โ Trade Loan is permanently enhanced to $10M, and a $1B Private Credit Growth Fund has been introduced to finance high-potential local companies.
Budget 2025 introduces three tax incentives for businesses:
- Listing CIT Rebate for new corporate listings in Singapore
- Enhanced Concessionary Tax Rate for fund managers listing in Singapore
- Tax exemption on qualifying income from funds investing in Singapore-listed equities
Yes, Budget 2025 includes climate adaptation grants, green vehicle incentives, and climate vouchers to support businesses adopting eco-friendly initiatives and sustainability measures.
The government has enhanced Workfare Skills Support, SkillsFuture grants, and employment credits to encourage businesses to hire and upskill workers, particularly senior employees.
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