Running a business in Singapore has always required a balance of smart financial planning, compliance, and strategic reinvestment. With rising operational expenses and ongoing global uncertainties, Budget 2025 introduces a powerful support package designed to help companies maintain stability and continue growing — a combined Corporate Income Tax (CIT) Rebate and cash support worth up to S$40,000.

This initiative is one of the most substantial business support measures Singapore has implemented in recent years. It directly strengthens liquidity for startups, SMEs, and even foreign-owned entities incorporated locally. Whether you’ve been operating for years or only just incorporated in 2024, this support can significantly improve your cash position heading into FY2025 and beyond.

Let’s explore how this S$40,000 support works, who qualifies, and how your company can maximise every dollar.

Overview: What Support Can Companies Receive for YA 2025?

The YA 2025 corporate support framework consists of two key components, both automatically assessed by IRAS:

✔ 1. 50% Corporate Income Tax Rebate (Capped at S$40,000)

This effectively halves your corporate tax payable for the Year of Assessment 2025.

✔ 2. S$2,000 CIT Rebate Cash Grant

This is given to companies that hired at least one Singaporean or Permanent Resident employee in 2024 with CPF contributions.

✔ Automatic Assessment — No Applications Required

Unlike typical government grants, companies do not need to apply or submit separate documents. IRAS automatically computes and disburses the rebate and cash grant based on the company’s tax filings.

✔ Applies to Both New and Established Companies

Whether you incorporated in 2024 or earlier, you may qualify if your company meets the activity and hiring conditions.

This makes the support package extremely inclusive — providing relief not only to profitable companies but also early-stage businesses with low or even zero profits.

Component 1: Understanding the 50% Corporate Income Tax Rebate

The CIT Rebate is the most impactful portion of the S$40,000 package. Here’s what business owners should know:

✔ How It Works

• The rebate applies to all companies with tax payable in YA 2025.
• It reduces the tax bill by 50%, up to a maximum of S$40,000.
• Administered automatically once Form C-S or Form C is filed.
• No additional steps or documents required.

This means that if your company has tax payable, IRAS will compute your rebate and deduct it before issuing your final tax assessment.

✔ Examples to Understand the Rebate Effect

Scenario A — Medium Tax Payable

• Tax payable: S$30,000
• Rebate: S$15,000

A healthy reduction in tax expenses that can be channelled into operations.

Scenario B — High-Growth Business

• Tax payable: S$80,000 or higher
• Rebate: S$40,000 (maximum)

Businesses with strong profitability gain the largest benefit.

Scenario C — Low-Profit Company

• Tax payable: S$5,000
• Rebate: S$2,500

Still meaningful support through reduced taxes.

✔ Why the Rebate Matters to Businesses

The 50% rebate is particularly valuable because it:

• Improves cash flow without increasing administrative burden
• Lowers the tax cost for companies scaling quickly
• Allows businesses to redirect money toward expansion
• Reduces the impact of rising costs in areas like rental and manpower

Singapore’s corporate tax rate remains internationally competitive, and this rebate further strengthens the country’s position as a premier location for business.

Component 2: The S$2,000 Cash Grant — Support for Companies With Local Hiring

The cash grant is another key part of the YA 2025 support package. Unlike the rebate, this is direct cash, not a tax deduction.

✔ Eligibility Criteria

To receive the cash grant, your company must meet both conditions:

Condition 1: The Company Must Be Active in 2024

“Active” means:

• Business transactions were made
• Revenue was generated
• Commercial activities took place

Companies that remained dormant or inactive for the entire year do not qualify.

Condition 2: Your Company Hired at Least One Local Employee (SG/PR)

Important notes:

• Local employee must have CPF contributions
• Shareholder-directors do not qualify
• Employees must be legitimate hires, not nominal arrangements

✔ Why This Grant Is Crucial

The cash payout is especially meaningful because:

• Companies with no profits can still receive S$2,000
• Startups and early-stage companies benefit even with low revenue
• It offsets part of manpower costs for hiring locals
• It encourages companies to build local employment early

For many new founders, this is one of the easiest forms of support to unlock — provided compliance and payroll records are properly maintained.

Why Did Singapore Introduce This Tax Support Package?

The combined S$40,000 support package was designed to help companies manage the increasing cost pressures in today’s business environment.

✔ Rising Business Costs in Singapore

2024–2025 has seen:

• Higher commercial rental rates
• Wage growth and increased labour competition
• Inflation affecting raw materials and logistics
• Tightening international economic conditions

These factors affect companies across all industries, from retail and services to logistics and technology.

✔ Objectives of the Support Package

The government aims to:

• Ease cost burdens, especially for SMEs
• Encourage early and sustained local hiring
• Support companies in reinvesting into digital transformation
• Maintain Singapore’s edge as a competitive business hub
• Build resilience in an uncertain global economy

By ensuring the support is automatic and broad-based, the government reduces red tape while maximising reach.

Maximising the Full S$40,000: Strategies for Business Owners

Not every company will automatically receive the highest available amount. To optimise your benefits, it’s important to take a strategic approach.

✔ 1. Plan FY2024 Financials Early

Tax payable is influenced by:

• How revenue is recognised
• Timing of deductible expenses
• Capital allowances
• Operating cost structures

Proper planning helps ensure you reach the optimal tax position to maximise the rebate.

✔ 2. Ensure You Hire at Least One Local Employee in 2024

Just one local employee unlocks the S$2,000 cash payout — even if profits are low.

✔ 3. Maintain Active Business Status

Companies that remain dormant miss out entirely.

✔ 4. Keep All Filings Accurate and On Time

To avoid delays or issues:

• File ECI on time
• Submit Form C-S or C correctly
• Maintain proper accounting records
• Complete ACRA filings punctually

This ensures IRAS can process your rebate and cash grant without complications.

✔ 5. Work With a Professional Accounting Team

Many companies lose out on support simply because:

• Their accounts are not updated
• Their filings were inaccurate
• They were late in submitting mandatory returns

Corpzzy ensures your books are clean, compliant, and aligned with IRAS expectations.

📘 Real Examples: How Different Companies Benefit

Example 1: High-Growth SME

An SME with strong FY2024 performance and tax payable of S$80,000 receives the full S$40,000 rebate.

Example 2: Startup With Modest Profits

A young company with tax payable of S$3,000 gets a S$1,500 rebate, but because it hired a local employee, it receives the S$2,000 cash grant instead.

Example 3: Retail Business Facing Rising Costs

A retail company with tax payable of S$20,000 receives a S$10,000 rebate — providing much-needed relief to manage rental and inventory costs.

Example 4: Foreign-Owned Holding Company

A holding company earns income and receives a mid-level rebate. However, without local employees, it misses the S$2,000 cash grant.

These examples show the package benefits a wide range of business types — from high-revenue companies to early-stage startups.

Why Companies Choose Corpzzy for Accounting & Tax Compliance

Corpzzy helps business owners stay compliant, organised, and financially efficient. Our services ensure you never miss rebates, grants, or tax incentives due to incomplete records or late submissions.

✔ What Corpzzy Helps You With:

• Monthly accounting & bookkeeping
• Corporate tax computation & planning
• YA 2025 rebate optimisation
• ECI and Form C-S/C submissions
• Payroll & CPF management
• IRAS and ACRA compliance monitoring
• Financial year-end support

We work with startups, SMEs, and foreign founders who need a reliable, transparent, and affordable partner in Singapore.

🚀 Secure Your S$40,000 Benefit With Corpzzy’s Guidance

The YA 2025 tax support package is a powerful opportunity to strengthen your business financially. With the right structure and planning, your company can enjoy meaningful tax savings and cash support.

If you want to:

✔ Optimise your tax position
✔ Keep clean, compliant financial records
✔ Avoid penalties or missed rebates
✔ Grow your business with confidence

Corpzzy is here to support you every step of the way.