Businesses will receive a 50 per cent corporate tax rebate and more wage support to help them manage higher costs of rent and labour, said Prime Minister Lawrence Wong.
The tax rebate will be applicable for the Year of Assessment 2025 and help companies with their cash flow needs as they continue to adjust to structurally higher costs, he added in his Budget statement on 18 February.
While inflation, which refers to the pace of change in prices, has eased after rising sharply in 2022, prices remain at elevated levels compared with previous years. Meanwhile, wages have also risen.
PM Wong, who is also Finance Minister, said: “Higher prices also affect our businesses, many of whom are grappling with the higher cost of rent and labour.”
Recognising that corporate tax applies only to companies that make a profit, the PM said: “I will provide every active company that employed at least one local employee last year a minimum benefit of S$2,000.”
The total benefit from the rebate and the cash grant that each company can get will be capped at S$40,000. Eligible companies will automatically receive the benefits from the second quarter of calendar year 2025 onwards.
