Singapore Budget 2026 - Tax Changes Overview & Key Highlights

Key Tax Changes and Enterprise Support for the Year Ahead

The Singapore Budget 2026 (the FY2026 Budget Statement) was delivered by Prime Minister and Minister for Finance Mr Lawrence Wong on 12 February 2026. It focuses on strengthening Singapore's refreshed economic strategy, harnessing artificial intelligence (AI) as a strategic advantage, and building a resilient, skilled workforce. Below is a summary of the key highlights and their implications for businesses and individuals, from the perspective of Apexia Corporate Advisory. Figures reflect the Budget 2026 announcements; for the definitive details, please refer to the official Singapore Budget website and IRAS.

1. Support for Businesses

To help companies manage costs and stay competitive, Budget 2026 continued targeted business support:

• Corporate Income Tax (CIT) Rebate: A 50% CIT Rebate for the Year of Assessment (YA) 2026, capped at $40,000. The rebate was announced at 40% (capped at $30,000) in the Budget and subsequently enhanced to 50% (capped at $40,000), in line with YA 2025.
• Minimum benefit for active companies: Companies that employed at least one local employee in 2025 receive a minimum cash grant of $2,000, with total benefits (rebate plus cash grant) capped at $40,000.
• SME Cash Grant 2026: A cash grant of up to $2,500 per eligible business (generally $500 per local qualifying employee), disbursed automatically in November 2026 to help SMEs manage costs. Refer to IRAS for the full eligibility conditions.
• Investment incentives extended and enhanced: The Finance & Treasury Centre (FTC) incentive and the Global Trader Programme (GTP) were extended and enhanced to reinforce Singapore's position as a global business hub.

These measures cushion cost pressures while encouraging companies to invest, hire locally, and scale.

2. Harnessing AI as a Strategic Advantage

A central theme of Budget 2026 is the strategic adoption of AI across the economy:

• Support for AI adoption by enterprises, including capabilities, compute access and talent, to raise productivity and open new growth areas.
• Research, Innovation and Enterprise (RIE) 2030 Plan: Continued investment in R&D, including decarbonisation technologies, under the S$37 billion RIE2030 envelope.

Businesses that prepare early to adopt AI and deep-tech capabilities stand to benefit most from these measures.

3. Corporate and International Tax

Budget 2026 reaffirmed Singapore's international tax direction and refreshed key incentives:

• BEPS 2.0 / Pillar Two: Singapore remains committed to implementing the Multinational Enterprise Top-up Tax (MTT) and the Domestic Top-up Tax (DTT) under the global minimum tax rules.
• Global Trader Programme (GTP): Originally scheduled to lapse after 31 December 2026, the GTP is extended to 31 December 2031. From 13 February 2026, qualifying commodities are expanded to include Environmental Attribute Certificates.
• The headline corporate tax rate remains 17%.

Groups within scope of Pillar Two should review their structures and compliance readiness for the top-up tax rules.

4. Workforce and Lower-Wage Workers

Budget 2026 continued to support employment, wages and workforce resilience:

• Support for lower-wage workers through schemes such as the Progressive Wage Credit Scheme and the Uplifting Employment Credit.
• Senior worker CPF: Continued step-up of CPF contribution rates for senior workers, with CPF Transition Offset to help employers manage the increase.
• Platform workers: From 1 January 2026, a tax deduction is allowed for CPF cash top-ups made by platform operators for their platform workers (applies from YA 2027).
• Work passes: From January 2027, the Employment Pass minimum qualifying salary for new applicants rises from $5,600 to $6,000 (financial services: $6,200 to $6,600). The S Pass minimum qualifying salary rises from $3,300 to $3,600 (financial services: $3,800 to $4,000).

Employers should factor the higher CPF and work-pass thresholds into their 2026 manpower budgeting.

5. Individuals and Households

Key points for individuals:

• No Personal Income Tax Rebate for YA 2026. Unlike YA 2025 (which included a personal income tax rebate), no personal income tax rebate was announced for YA 2026.
• Cost-of-living and family support measures continue. For the specific vouchers, payouts and amounts, please refer to the official Budget materials, as these change each year.

6. Sustainability and Fiscal Position

• Decarbonisation remains an area of strategic economic importance, supported through R&D funding and the expansion of the GTP to Environmental Attribute Certificates.
• Fiscal strength: Budget 2026 was delivered from a position of strength, supported by robust corporate tax collections and a healthy fiscal position, enabling continued reinvestment.

Conclusion: What This Means for Businesses and Individuals

The Singapore Budget 2026 sets a clear direction: help businesses adapt and invest, accelerate AI adoption, and build a resilient workforce, while maintaining fiscal discipline. Companies should make full use of the CIT rebate, enterprise support schemes, and refreshed incentives, and prepare for changes such as higher senior-worker CPF rates and work-pass thresholds.

At Apexia Corporate Advisory, we are committed to helping businesses navigate these changes. Our team is ready to assist companies in leveraging available incentives, digital transformation opportunities, and workforce development programs. Contact us today to ensure that your business is well-positioned for the opportunities presented in Budget 2026.