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• Corporate income tax rebate of 50 per cent, plus a S$2,000 cash grant for eligible employers, capped at S$40,000 in total benefits

• Progressive Wage Credit Scheme co-funding to increase to 40 per cent in 2025 and 20 per cent from 2026

• Household support: S$800 in CDC Vouchers, up to S$760 in U-Save rebates, and S$500 in LifeSG credits for each Singaporean child aged 12 and below

A REPEAT of the corporate income tax (CIT) rebate will help businesses reduce costs in the short term, but its impact is less significant for unprofitable companies – even as they may be the ones in greater need of financial support, business leaders said.

Finance Minister Lawrence Wong on Tuesday (Feb 18) announced a CIT rebate of 50 per cent on tax payable for the year of assessment 2025 in his Budget speech.

In addition, companies that are active and had at least one local employee in 2024 will receive a minimum S$2,000 cash grant.

The total benefits – comprising the CIT rebate and cash grant – will be capped at S$40,000, with eligible companies automatically receiving them from the second quarter of 2025.