From Rebates to Expansion: Key Business Insights from Budget 2026

Sources: Singapore Budget 2026, Section B: Advance Our Refreshed Economic Strategy (singaporebudget.gov.sg); Ministry of Finance Annex B-1: Support for Businesses (FY2026). For official scheme details, visit go.gov.sg/iras-citrebate and enterprisesg.gov.sg.

The Singapore's Budget 2026 announcement delivers a robust package of measures to help businesses manage rising costs, expand internationally, and access the capital they need to grow. Here is a clear breakdown of what has been announced and how your company can benefit.

01  Corporate Income Tax Rebate & Cash Grant

To ease near-term cost pressures, the Government is granting a 40% Corporate Income Tax (CIT) Rebate for the Year of Assessment (YA) 2026, capped at a maximum combined benefit of $30,000 per company.

Companies that are active and have employed at least one local employee (Singapore Citizen or Permanent Resident) in Calendar Year 2025 by making CPF contributions on their behalf will receive a minimum benefit of $1,500 in the form of a CIT Rebate Cash Grant, even if their tax payable is low. Shareholders who are also directors are excluded from the local employee count.

Illustrative Example

Company A has a tax payable of $30,000 for YA 2026, entitling it to a CIT Rebate of $12,000 (40% × $30,000). Having employed at least one local employee in CY 2025, it will receive $1,500 as a CIT Rebate Cash Grant, with the remaining $10,500 applied as a CIT Rebate.

Eligible companies will automatically receive their benefits from Q2 2026 onwards, no separate application is required.

02  Enhanced Internationalisation Grant Support

Recognising that expanding overseas is a critical growth pathway, the Government is meaningfully upgrading several grant schemes to make it easier and less costly for Singapore enterprises to internationalise.

Market Readiness Assistance (MRA) Grant

From 1 April 2026, the MRA grant which helps enterprises defray the costs of overseas market promotion, business development, and market set-up will be enhanced:

Parameter	Current	From 1 April 2026
Support Level (SMEs)	Up to 50% of eligible costs	Up to 70% (until 31 March 2029)
Grant Cap	$100,000 per company per new market	$100,000 extended (was due to lapse)
Market Eligibility	New markets only	Existing markets included (from 2H 2026)

The removal of the 'new to target overseas market' criterion from 2H 2026 is particularly significant: local companies will now be able to claim support to deepen activities in markets they already operate in, not just to enter new ones.

Other Internationalisation Schemes (1 April 2026 – 31 March 2029)

Enhanced support levels will apply to the Business Adaptation Grant and Global Innovation Alliance (GIA) schemes:

Company Type	Support Level
Local SMEs	Up to 70% of eligible costs
Local Non-SMEs	Up to 50% of eligible costs

03  Enhanced Loan Quantum Under the Enterprise Financing Scheme

From 1 April 2026, the maximum loan quantum under two key EFS facilities will be substantially increased:

EFS Facility	Current Cap	Revised Cap
EFS – SME Fixed Assets Loan For investments in domestic & overseas fixed assets	$30M per borrower / group	Borrower & group caps lifted (overall $50M group limit remains)
EFS – Trade Loan For import, export & guarantee financing	$10M per borrower / $20M per group

04  Enhanced Double Tax Deduction for Internationalisation (DTDi)

The DTDi scheme allows businesses to claim a 200% tax deduction on eligible expenses for qualifying market expansion and investment development activities. From YA 2027, this scheme becomes significantly more accessible:

Feature	Current	From YA 2027
Auto-claim cap (no prior approval)	$150,000 per YA	$400,000 per YA
Activities eligible for auto-claim	9 qualifying activities	Expanded to include overseas trips, investment feasibility studies, master licensing & franchising, market surveys, overseas business development, and production of corporate brochures
Prior approval required for	Expenses above $150,000 or remaining 7 activities	Expenses above $400,000; overseas trade offices; e-commerce campaigns

Enterprise Singapore will release further details by Q2 2026.

05  Strengthening Singapore's Enterprise Ecosystem

Beyond direct business support, Budget 2026 takes a longer-term view of enterprise development with substantial commitments to grow Singapore's capital ecosystem:

$1 billion for Startup SG Equity

Expanded to cover growth-stage companies, beyond just early-stage startups, catalysing private capital at critical scale-up phases.

$1.5 billion second tranche of the Anchor Fund

A co-investment between the Government and Temasek to attract and anchor high-quality listings on the SGX, building on renewed listing activity momentum.

$1.5 billion top-up to the Financial Sector Development Fund

Expanding the Equity Market Development Programme to grow Singapore's fund management industry and deepen investor participation in local equities.

$37 billion for Research, Innovation & Enterprise (RIE2030)

Sustaining Singapore's commitment to frontier research and innovation at approximately 1% of GDP annually, with focus on semiconductors, biomedical sciences, aerospace, quantum technology, and decarbonisation.

Disclaimer: The information presented above is a summary based on announcements from Singapore Budget 2026 and is intended for general guidance only. Implementation details, eligibility criteria, and timelines are subject to final guidelines issued by the relevant authorities.

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Navigating government grants, tax schemes, and financing facilities requires more than just knowing what’s available; it requires precise execution, timely applications, and a trusted advisor who understands your business inside out.

At K.Merleone, we provide end-to-end support to help Singapore businesses and foreign investors unlock every opportunity that Budget 2026 offers. Our experienced team takes care of the paperwork and compliance, so you can focus on growing your business with confidence.

Our Services:

• Company Incorporation: Swift, compliant Singapore company setup for locals and foreign investors alike.

• HR & Payroll

• Corporate Secretarial & Compliance: Full ACRA compliance, annual filings, and ongoing regulatory support.

• Tax & Accounting: CIT optimisation, GST registration, bookkeeping, and financial reporting.

• Internationalisation Support: Strategic guidance for companies expanding beyond Singapore's borders.

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