Businesses will receive a 40% corporate income tax rebate in the year of
assessment 2026 to help with cost pressures and operating challenges,
the Singapore PM and Minister for Finance Lawrence Wong, announced in
his FY2026 Budget Statement.
"Every active company that employed
at least one local employee last year will receive a minimum benefit of
S$1,500. The total benefit for each company will be capped at
S$30,000," he said.
"This will provide short-term relief, as we press on with our restructuring and transformation efforts".
Internationalisation
The
Singapore government also recognised the challenges that businesses
face as they internationalise. Wong said there will the Market Readiness
Assistance grant would be extended to support companies in existing
overseas markets in addition to its current remit on accessing new
markets.
More activities will also be added to the Double Tax
Deduction for Internationalisation scheme, under which companies
automatically enjoy a 200% tax deduction for eligible activities, capped
at S$150,000. "We will allow more qualifying activities to be eligible
for such automatic tax deduction claims and raise the cap to S$400,000,"
Wong said.
The Enterprise Financing Scheme will also see the
maximum loan quantum for trade and fixed asset loans increased. Wong
also shared that there will be more support for companies "pursuing
significant overseas ventures that require higher capital outlay".
Karen Ng, Regional Head of Expansion - Enterprise - North and South Asia, Deel said: "It’s a welcome development to see that Singapore does not only want its companies to thrive at home, but to compete and succeed globally. The enhanced grants announced during the Budget 2026 include bigger tax deduction cap for internationalisation and higher loan quantum are all strong signals that overseas growth is now seen as part of the national playbook, not a side project for a few regional champions.
"This is especially important for businesses, particularly for small to mid‑sized firms that have the product‑market fit but lack resources such as in‑house legal, HR and finance muscles to navigate multiple jurisdictions at once."
Ng added that what’s often overlooked is that global expansion isn’t about opening offices, it’s about running a compliant, well-governed workforce across borders. "Every new market brings its own employment rules, tax requirements, and payroll complexity. The companies that will truly benefit from this Budget are those that pair new incentives with specialist support and technology-enabled workforce models that manage compliant hiring, local contracts, and payroll, so leaders can stay focused on customers, talent, and growth," she pointed out.
Startups
There
will be more help for startups at the growth stage, Wong added.
Startups can now get early-stage funding easily, but not when they need
to scale. To catalyse growth capital in Singapore, Wong said an
additional S$1 billion is earmarked for the Startup SG Equity scheme,
under which the government provides initial capital to catalyse and
crowd in private funding for promising startups. The scheme will now
cover growth-stage companies as well.
"Beyond this, we will take
a more systemic approach to strengthening our growth capital ecosystem.
We will convene a new work group led by Minister Chee Hong Tat, working
closely with the industry, to develop strategies to position Singapore
as a leading centre for growth capital," Wong said.
Another
initiative which will enjoy more funding is the Anchor Fund, which was
set up to attract and anchor high-quality listings. A second S$1.5
billion tranche will go to the Anchor Fund, Wong said, and as with the
first tranche, will be a co-investment between the Singapore government
and Temasek.
Explore
Read about the Budget's emphasis on AI and innovation and what this means for businesses
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