How will Budget 2025 affect my company? (Support for businesses)

Corporate Income Tax Rebate (CIT) and CIT Rebate Cash Grant

Companies will receive a CIT Rebate of 50% of payable tax in Year of Assessment (YA) 2025.

All active companies that employed at least one local employee in Calendar Year (CY) 2024 will receive a minimum benefit of $2,000 in the form of a CIT Rebate Cash Grant.

The total maximum benefit that a company may receive, being the sum of both the CIT Rebate and CIT Rebate Cash Grant is SGD$40,000. Eligible companies will automatically receive these benefits from 2Q CY 2025.

A company is considered to have met the one local employee condition if it has made CPF contributions to at least one local, being a Singaporean or Singapore Resident employee, in CY 2024. This employee cannot be a shareholder who is also a director of the company.

Co-funding support for the Progressive Wage Credit Scheme (PWCS) will be enhanced

The PWCS was introduced in 2022 to provide transitional wage support for employers to adjust to progressive wage moves and to encourage employers to raise the wages of lower-wage workers.

The following conditions will apply:

1. The employee has an average gross monthly wage of up to $3,000, before the wage increase;
2. The employee has an average gross monthly wage of up to $4,000, after the wage increase
3. The average gross monthly wage increase must be at least $100 in each qualifying year; and
4. The wage increase in each qualifying year will be co-funded for two years if the wage increase is sustained.

The PWCS support funding support will be enhanced for wage increases given in 2025 and 2026.

If you need any assistance or more information on any of these schemes, you can contact the Raffles Corporate Services tax advisory team at [email protected].

Yours sincerely,

The editorial team at Raffles Corporate Services