Tax incentives for new companies in Singapore make it one of the easiest places in the world to start and grow a business.
Alongside a low 17% corporate tax rate, new companies can tap into various Singapore tax incentive schemes that reduce costs, support innovation, and encourage long-term growth.
Singapore also offers startup tax exemption schemes that lower your tax bill in the first few years of operation. You can explore those in detail in our guide about exemptions for startups.
In this article, we’ll focus on the other tax incentives that help businesses invest in R&D, innovate, and scale with confidence.
TL;DR
- Corporate Income Tax Rebate (2026): 50% rebate, capped at S$40,000, plus a S$2,000 cash grant if you had at least one local employee in 2024.
- Enterprise Innovation Scheme: Up to 400% R&D/innovation deduction or a cash payout (capped).
- DTDi: 200% deduction on eligible overseas expansion spend.
- IDI: Lower tax on income from IP
- DEI: Reduced tax for high-value growth activities
Skip the confusion.
Corporate income tax rebate and cash grant (2026)
In 2025, Singapore introduced a new Corporate Income Tax (CIT) Rebate to help businesses manage cash flow.
- All companies receive a 50% Corporate Income Tax (CIT) rebate, capped at S$40,000 for YA 2025.
- Active companies with at least one local employee (Singapore Citizen or Permanent Resident) in 2024, for whom CPF contributions were made, will also receive a minimum S$2,000 cash grant, which is not taxable.
- The total maximum benefit (CIT rebate + cash grant) is capped at S$40,000.
- If the computed CIT rebate is less than S$2,000, only the cash grant will be provided.
The rebate and grant will be applied automatically by the Inland Revenue Authority of Singapore (IRAS) by Q2 2025, so there is no need to apply. This initiative helps small businesses manage cash flow and reinvest their savings, and applies to both local and foreign companies operating in Singapore.
Singapore tax incentives for innovation and growth
Innovation is at the heart of Singapore’s economy, and the government actively encourages and rewards it. Here are the key Singapore tax incentives that encourage businesses to build, innovate, and expand their operations.
Enterprise Innovation Scheme (EIS)
The Enterprise Innovation Scheme (EIS) supports companies that invest in research, development, and innovation.
Under this R&D tax incentive Singapore program:
- You can claim up to 400% tax deduction on approved R&D expenses.
- Eligible costs include R&D staff wages, materials, testing, and IP registration.
- If you prefer quick funds, you can opt for a cash payout of up to S$20,000 instead of deductions.
Example: A health-tech startup testing a new app feature can claim enhanced deductions on developer salaries and testing costs.
This scheme helps companies innovate confidently without worrying about high costs.
Double Tax Deduction for Internationalisation (DTDi)
The DTDi scheme helps businesses expand overseas by making global growth more affordable.
You can claim 200% tax deduction on eligible expenses such as:
- Overseas marketing and advertising
- Trade fairs and exhibitions
- Business development trips
- Setting up overseas offices
Example: A Singapore fashion brand attending a trade show in Malaysia can double-deduct its travel and booth expenses.
This incentive gives startups the confidence to explore new markets early in their journey.
Intellectual Property Development Incentive (IDI)
The Intellectual Property Development Incentive (IDI) supports companies that create and commercialise intellectual property.
It offers reduced tax rates (5%-10%) on income earned from IP such as patents, trademarks, or software.
Example: A creative agency earning royalties from its original logo designs pays a lower tax rate on that IP income.
This scheme encourages founders to protect their ideas and build valuable assets locally.
Development and Expansion Incentive (DEI)
The Development and Expansion Incentive (DEI) rewards companies that scale up and contribute to Singapore’s economic growth.
Businesses engaged in high-value activities such as regional headquarters, advanced manufacturing, or analytics may enjoy reduced tax rates (5%-15%) on qualifying profits.
Example: A logistics startup opening a regional operations hub in Singapore can qualify for a lower tax rate on that income.
The DEI helps fast-growing companies reinvest profits and expand sustainably.
How to apply for tax incentives for new companies in Singapore
Getting these benefits is simpler than it sounds.
- Incorporate your company in Singapore and ensure it’s tax-resident.
- Keep proper records. Track R&D, marketing, and overseas expenses.
- File your corporate taxes on time. IRAS applies rebates automatically.
- Reach out to the right agency:
- IRAS for general schemes and CIT rebate
- Enterprise Singapore for DTDi
- EDB for IDI and DEI
Tip: Working with a good accountant or corporate advisor ensures you don’t miss out on any savings.
How Sleek helps you make the most of Singapore tax incentives
Starting a business is exciting, but it can also be overwhelming. Between managing operations, hiring, and compliance, it’s easy to miss out on the tax benefits you deserve.
That’s where Sleek comes in.
Our team helps you:
- Set up your company correctly so you qualify for key Singapore tax incentive schemes.
- Handle your filings and bookkeeping seamlessly, ensuring you don’t miss a rebate or deduction.
- Identify the right incentives, from the CIT rebate that boosts cash flow to R&D and internationalisation schemes, that reward innovation and growth.
Because every dollar saved is a dollar you can reinvest into your dream.
Ready to simplify all the tax-related stuff?
FAQs on Singapore tax incentive schemes
What tax incentives are available for new companies in Singapore?
Singapore offers several tax incentives to support new and growing businesses. These include the Corporate Income Tax (CIT) Rebate, the Enterprise Innovation Scheme (EIS) for R&D, the Double Tax Deduction for Internationalisation (DTDi), and incentives for intellectual property and business expansion, like the IDI and DEI.
How does the 2025 Corporate Income Tax Rebate help Singapore businesses?
For YA 2025, companies got a 50% tax rebate, capped at S$40,000.
Those with at least one local employee in 2024 receive an extra S$2,000 cash grant, automatically credited and not taxable. It’s a direct way to ease cash flow pressures for small and new companies.
What is the Enterprise Innovation Scheme (EIS) in Singapore?
The EIS encourages research and innovation. It allows businesses to claim up to 400% tax deduction on approved R&D costs or opt for a cash payout. This helps startups recover part of their product development and testing expenses.
How can Singapore startups benefit from expanding overseas?
Through the DTDi scheme, eligible expenses, such as overseas marketing, trade fairs, and market research, qualify for a 200% tax deduction. It’s designed to make regional and global expansion more affordable for Singapore-based companies.
Who can claim the Intellectual Property Development Incentive (IDI) in Singapore?
Companies that earn from intellectual property, such as patents, designs, or software, can enjoy reduced tax rates (5%-10%) on that income under the IDI. This rewards businesses that innovate and protect their IP in Singapore.
How do I know if my company qualifies for Singapore tax incentives?
Most incentives apply to Singapore-incorporated and tax-resident companies. Some, like the CIT rebate, are automatic, while others (such as DTDi or IDI) require applications through IRAS, Enterprise Singapore, or EDB. A professional advisor can help assess your eligibility.
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