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Singapore Budget 2026 Summary

Dear Reader,

Welcome to our Singapore Budget 2026 summary.

The following is the Budget 2026 Summary announced by Prime Minister and Minister for Finance, Mr. Lawrence Wong in his Budget Statement for the Financial Year 2026 which was delivered in Parliament on Thursday, 12 February 2026.

 

OVERVIEW OF TAX CHANGES

Corporate Income Tax (CIT) Rebate and Cash Grant for Year of Assessment 2026

• Eligible companies will receive a CIT Rebate of 40% of tax payable for YA 2026.
• Active companies employing at least one local employee in 2025 will receive a minimum benefit of $1,500 as a CIT Rebate Cash Grant.
• The maximum benefits of CIT Rebate and CIT Rebate Cash Grant that a company may receive is $30,000.

 

Enhance the Double Tax Deduction for Internationalisation (“DTDi”) scheme

• To further support businesses in their internationalisation efforts, the expenditure cap for claims that may be filed without prior approval will be raised from $150,000 to $400,000 per YA.

 

Enhance the Enterprise Innovation Scheme (“EIS”)

• To support businesses in adopting AI, the EIS will be enhanced for YA 2027 and YA 2028:

1. a) The list of partner institutions will be expanded to include the Sectoral AI Centre of Excellence for Manufacturing.
2. b) An additional qualifying activity will be introduced for qualifying AI expenditures. Businesses can claim tax deductions/allowances of 400% on up to $50,000 of qualifying AI expenditures incurred for each YA. The option to convert qualifying expenditure into a cash payout will not be available for this new qualifying activity.

 

Extend the withholding tax exemptions for the financial sector

• To maintain the competitiveness of our financial sector, the withholding tax exemptions for payments (a) to (g) will be extended till 31 December 2031.

 

Extend and enhance the Finance and Treasury Centre (“FTC”) incentive

• To encourage companies to conduct treasury management activities in Singapore, the FTC incentive will be extended till 31 December 2031.
• In addition, the scope of the withholding tax exemption for approved FTCs will be expanded to include interest-like borrowing costs that are subject to withholding tax, for loans used for qualifying activities or services. The expanded scope of exemption applies to payments made on or after 13 February 2026.

 

Extend and enhance the Global Trader Programme (“GTP”)

• To further strengthen Singapore’s position as a global trading hub, the following changes will be made to the GTP: scheme will be extended until 31 December 2031.
• The list of qualifying commodities will be expanded to include Environmental Attribute Certificates from 13 February 2026.

 

Extend the Not-for-Profit Organisation Tax Incentive (“NPOTI”)

• To ensure that Singapore remains an attractive location for NPOs, the NPOTI will be extended till 31 December 2032.

 

Other tax changes

• Allow tax deduction for CPF cash top-ups made by platform operators on behalf of their platform workers under the Voluntary Contributions to MediSave Account scheme (“VC-MA”)
• Allow the Investment Allowance for Emissions Reduction (“IA-ER”) scheme to lapse
• Allow the double tax deduction for qualifying upfront costs attributable to rated retail bonds to lapse
• Extend the 250% tax deduction for qualifying donations to Institutions of a Public Character (“IPCs”) and eligible institutions
• Extend the Corporate Volunteer Scheme (“CVS”)
• Reduction of Preferential Additional Registration Fee (PARF) rebate

 

SUPPORTING SINGAPOREANS

Support for Singaporeans

• Cash for all Singaporeans aged 21 and above – $200 to $400 Cost-of-Living Special Payment for eligible Singaporeans
• Cash for all Singaporeans aged 21 and above – $100 to 250 Assurance Package for all Singaporeans
• Cash for all Singaporeans aged 21 and above – $450 or $850 GST Voucher Scheme for lower- and middle-income Singaporeans
• Child LifeSG Credits – $500 Child LifeSG Credits for all Singaporean children aged 12 and below

 

Support for households

• CDC Vouchers $500 for all Singaporean households
• U-Save $330 to $570 for HDB households
• S&CC Rebate 1.5 to 3.5 months offset for HDB households

 

Support for seniors

• CPF Top-Up for eligible Singaporeans aged 50 and above with CPF balances below prevailing Basic Retirement Sum $500 to $1,500
• MediSave for eligible Singaporeans aged 65 and above $150 to $450

 

Nurturing Our Children

• $500 Child LifeSG Credits for all Singaporean children aged 12 and below
• Raise monthly household income eligibility thresholds to $15,000 for preschool subsidies and $6,500 for student care subsidies

 

Enabling Seniors to Age Well

• Up to $1,500 CPF Top-Up for eligible seniors
• Higher CPF contribution rates for senior workers aged above 55 to 65 in 2027 with CPF Transition Offset for employers
• Offer low-cost, life-cycle investment products under new investment scheme for CPF members

 

Supporting Families with Greater Needs

• Enhanced ComLink+ Progress Packages
• $500 every quarter for ComLink+ families progressing with Family Coaches
• Higher payouts for eligible ComLink+ families with regular preschool attendance and stable employment

 

ADVANCING OUR REFRESHED ECONOMIC STRATEGY

Connecting in a Changed World

• Enhance support for local companies to expand overseas
• Higher grant support level of up to 70% for SMEs and up to 50% for non-SMEs
• Enhance Market Readiness Assistance grant for enterprises to deepen presence overseas
• Enhance Enterprise Financing Scheme to increase maximum loan quantum for Trade and SME Fixed Assets loans

 

Strengthening Our Enterprise Ecosystem

• $1.5 billion for Anchor Fund to support public listings of high-growth companies in Singapore
• $1.5 billion to expand Equity Market Development Programme
• Expand Startup SG Equity scheme to catalyse investments in early- and growth-stage deep tech startups

 

HARNESSING AI AS A STRATEGIC ADVANTAGE

Driving Transformation

• Establish National AI Council, chaired by the Prime Minister, to drive national AI efforts
• Transform key sectors with national AI Missions

 

Accelerating AI Adoption

• Launch Champions of AI programme to drive AI-enabled business transformation
• Expand Enterprise Innovation Scheme to include qualifying AI expenditures
• Expand Productivity Solutions Grant to include more AI-enabled solutions

 

Empowering Workers

• Expand TechSkills Accelerator to help workers build practical AI capabilities
• Help Singaporeans to find relevant AI courses through redesigned SkillsFuture website
• Provide six months of free access to premium versions of AI tools when taking selected AI courses

 

BUILDING A RESILIENT & SKILLED WORKFORCE

Uplifting Lower-Wage Workers

• Raise Local Qualifying Salary to $1,800 from Jul 2026
• Extend and enhance Progressive Wage Credit Scheme
• Enhance basic tier of Workfare Skills Support

 

Taking SkillsFuture Forward

• Merge SkillsFuture Singapore and Workforce Singapore into a new statutory board

 

Strengthening Assurance for Mid-Career Workers & Seniors

• Expand coverage of SkillsFuture Level-Up Programme to more industry-relevant courses
• Extend Senior Employment Credit to 2027

 

Updating Foreign Worker Policies

• Raise minimum qualifying salary to $6,000 for Employment Pass and $3,600 for S Pass from 2027
• Adjust Work Permit levies from 2028

 

RENEWING & STRENGTHENING OUR SINGAPORE SPIRIT

Forging Our Shared Bonds

• Strengthen Singapore’s cultural and heritage institutions
• Open revamped Malay Heritage Centre
• Expand reach and engagement of Singapore Chinese Cultural Centre
• Enhance outreach and programming of Indian Heritage Centre
• Enhance access to sports facilities through Sports Facilities Master Plan

 

Building a “We-First” Society

• Extend 250% tax deductions for qualifying local donations to 2029
• Extend Corporate Volunteer Scheme to 2029
• Launch $50 million SG Partnerships Fund to catalyse ground-up initiatives