Singapore Budget 2026, delivered on 12 February 2026, focuses on easing business costs and accelerating AI adoption. Key highlights:
Corporate Tax Relief
- CIT Rebate (YA 2026): 40% of tax payable, capped at S$30,000 (YA 2025: 50%, cap S$40,000).
- CIT Rebate Cash Grant: S$1,500 for companies that employed at least one local employee in 2025, including loss-making companies.
Carbon Tax and Energy Efficiency
- Carbon tax rises to S$45/tCO2e in 2026.
- The Energy Efficiency Grant (EEG) has been enhanced, with up to 70% support for SMEs on pre-approved equipment and a wider range of eligible sectors.
AI and Innovation
- Champions of AI Programme: Support for enterprises to embed AI into core operations, including tailored roadmaps and workforce training.
- Enterprise Innovation Scheme (EIS): 400% tax deduction extended to qualifying AI expenditure, capped at S$50,000 for YA 2027 and YA 2028.
- Startup SG Equity: Additional S$1 billion to support deep-tech start-ups.
Manpower
- Local Qualifying Salary: Rises to S$1,800 from 1 July 2026.
- Employment Pass: Qualifying salary rises to S$6,000 (S$6,600 for financial services) from January 2027.
- Senior Employment Credit: Extended to end-2027.
Key Grants
Market Readiness Assistance (MRA), Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG) and Double Tax Deduction for Internationalisation (DTDi) remain available. Most applications are made through the Business Grants Portal using Corppass.
Contact us to assess how Budget 2026 affects your business.