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Active companies can claim a 40% corporate income tax rebate up to S$30,000 for the Year of Assessment 2026.
The Market Readiness Assistance (MRA) grant will increase to 70% support to help SMEs effectively expand into new overseas markets.
Start-ups will benefit from an additional S$1 billion injected into the Startup SG Equity scheme to support growth-stage funding.
Businesses can leverage a new Champions of AI programme and claim 400% tax deductions on qualifying artificial intelligence expenditures.
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Singapore’s Budget 2026 brings several targeted measures to help businesses navigate cost pressures and pursue overseas expansion more effectively. Announced by Prime Minister Lawrence Wong on 12 February, these initiatives deliver real financial relief and growth tools for both local SMEs and foreign entrepreneurs evaluating Singapore as their regional base. For companies considering business setup in Singapore, the updates offer clear, actionable advantages that can strengthen competitiveness and simplify international operations.
1. Maximising Corporate Income Tax Rebates for Year of Assessment 2026
A 40% corporate income tax (CIT) rebate will apply for the Year of Assessment 2026. Active companies that employed at least one local employee in calendar year 2025 will receive a minimum cash grant of S$1,500, with the total benefit capped at S$30,000 per company.
Accurate accounting records and timely compliance processes are essential to claim the full rebate without delay, making professional accounting & bookkeeping support a practical way to secure these benefits efficiently.
2. Strengthening Internationalisation Grants for Overseas Expansion
The Market Readiness Assistance (MRA) grant helps SMEs defray costs related to overseas market promotion, business development and market setup. Currently set at up to 50% of eligible costs with a cap of S$100,000 per company per new market, the support level will rise to 70% from 1 April 2026 until 31 March 2029, while the S$100,000 cap per new market remains unchanged.
From the same period, other internationalisation schemes will also receive enhanced support: up to 70% of eligible costs for local SMEs and up to 50% for local non-SMEs. This covers the Business Adaptation Grant (until 6 October 2027) and Global Innovation Alliance schemes.
For foreign entrepreneurs establishing a presence here, these enhanced grants can be leveraged effectively once the company is properly structured, with reliable corporate secretary services ensuring all documentation and compliance requirements are met from day one.
3. S$1 Billion Boost for Start-ups
The Startup SG Equity scheme will receive an additional S$1 billion to expand its scope. Previously focused mainly on early-stage funding, the scheme will now also support growth-stage companies, helping to catalyse greater private-sector investment as part of the Research, Innovation and Enterprise 2030 plan.
4. New Champions of AI Programme for Business Transformation
A new Champions of AI programme is being introduced to help companies integrate artificial intelligence across their operations. Support will be tailored to each business and will include both enterprise transformation and workforce training.
5. Expanded Tax Deductions for AI Expenditures
The Enterprise Innovation Scheme will now allow 400% tax deductions on qualifying AI expenditures for the Years of Assessment 2027 and 2028, capped at S$50,000 per year of assessment. These AI measures form part of a broader national strategy, supported by the newly established National AI Council chaired by Prime Minister Wong.
Partner with Koobiz for Your Business Growth
Budget 2026 clearly demonstrates Singapore’s continued focus on building a competitive, innovation-driven environment for businesses of all sizes. By understanding and planning for these measures early, SMEs and foreign investors can gain a meaningful edge in cost management and global expansion.
If you are exploring Singapore company formation, corporate services Singapore, or need expert support with accounting & bookkeeping, corporate secretary, or bank account opening, the Koobiz team is ready to provide clear, personalised guidance. Contact us today to see how these Budget 2026 opportunities can be aligned with your business objectives.
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