- Relief, deduction, exemption, rebate and credit each cut tax at a different stage
- The YA 2026 CIT Rebate is 50% of tax payable, capped at S$40,000, and automatic
- Personal reliefs are capped at S$80,000 per Year of Assessment
- Companies save tax mainly through deductions, exemptions and rebates, not credits
- Individuals: Claim up to S$80,000 in personal reliefs per year to lower taxable income.
- Companies: Save tax via business deductions, tax exemptions (up to S$125,000) and the automatic 50% YA 2026 CIT Rebate (capped at S$40,000).
Tax relief in Singapore is one of five ways to pay less tax, and the terms are easy to mix up. A relief, deduction, exemption, rebate and credit each cut your bill at a different stage. This guide maps all five for YA 2026.
Running a company? Sleek’s accountants handle corporate tax filing and apply the deductions and exemptions you qualify for. Use the table below to see which one applies to you.
| Type | What it reduces | Who it is for | Singapore example | How you get it |
|---|---|---|---|---|
| Tax relief | Your assessable income, before tax is calculated | Individuals who are tax residents | Earned Income Relief, CPF Relief | Claimed in your Income Tax Return; IRAS may carry over last year’s claims |
| Tax deduction | The income your business is taxed on | Companies and the self-employed | Business expenses; Enterprise Innovation Scheme 400% deductions | Claimed in your tax computation |
| Tax exemption | The part of income that is taxed | Qualifying new companies | Start-up Tax Exemption: 75% of the first S$100,000, 50% of the next S$100,000 | Applied when the company files its return |
| Tax rebate | The tax payable itself | Companies; individuals when IRAS grants one | YA 2026 CIT Rebate: 50% of tax payable, up to S$40,000 | Automatic: IRAS applies it |
| Tax credit | Tax payable, by tax already paid abroad | Companies with foreign income | Foreign Tax Credit | Claimed in the tax return |
What is tax relief in Singapore?
For individuals: tax relief in Singapore is an amount IRAS lets a tax resident subtract from their income before tax is calculated. It lowers the income that is taxed, and only tax residents can claim it. IRAS tax relief covers items such as earned income, CPF contributions and life insurance.
Income tax relief Singapore residents claim is deducted first, and the IRAS tax brackets then apply to what is left. A company does not claim personal reliefs, so it lowers its tax through deductions, exemptions and rebates instead.
Here is an illustrative example. If you are a Singapore Citizen under 55 earning S$60,000 and claim S$1,000 of Earned Income Relief plus S$12,000 of compulsory CPF Relief (the 20% employee contribution), tax is worked out on S$47,000, not S$60,000.
Residency matters. IRAS says only a tax resident can claim, which includes non-citizens who are in Singapore for more than 183 days in a year.
What is the difference between a tax relief, deduction, exemption, rebate and credit?
A tax relief reduces an individual’s assessable income. A tax deduction subtracts allowable business expenses from a business’s income, and a tax exemption leaves part of the income untaxed. A tax rebate cuts the tax bill itself, and a tax credit offsets tax already paid, such as foreign tax.
So each one works at a different stage: before tax is calculated, while income is computed, or after tax is worked out. The table above shows who each applies to and how you get it.
A quick way to choose is to ask who you are and where the saving happens:
- If you are an employee or self-employed individual, start with reliefs, which cut the income you are taxed on.
- If you run a company, look at deductions and exemptions first, which cut the profit you are taxed on.
- If the saving shows up as a lower tax bill, you are looking at a rebate, or a credit for tax paid abroad.
- If you are a company director or SME founder, you file as two separate taxpayers: your company claims business deductions, the Start-up or Partial Tax Exemption and the 50% CIT Rebate on its corporate return (Form C-S), while you claim up to S$80,000 in personal reliefs on your director’s salary and SRS contributions on your personal return (Form B1).
How to apply for tax relief in Singapore?
For individuals: you claim most tax reliefs when you file your Income Tax Return on myTax Portal, which you log in to with Singpass. IRAS also pre-fills some details, and your tax bill can use reliefs approved in your previous assessment year. Check each IRAS tax relief’s conditions before you claim.
Not every relief requires a manual form. IRAS separates them into two groups:
- Granted automatically by IRAS: Earned Income Relief, compulsory CPF Relief, CPF Cash Top-up Relief, Supplementary Retirement Scheme (SRS) Relief and NSman Relief are auto-included based on records from your employer, the CPF Board and SRS operators.
- Claimed or updated manually on myTax Portal: First-time claims or changes for Parent Relief, Spouse Relief, Qualifying Child Relief (QCR), Working Mother’s Child Relief (WMCR) and Life Insurance Relief must be entered when you file.
Here is how to apply for tax relief, step by step, based on IRAS filing guidance:
- Complete any voluntary CPF cash top-ups or SRS contributions by 31 December of the preceding year so they count towards the current assessment year.
- Log in to myTax Portal with your Singpass between 1 March and 18 April.
- Check your pre-filled income and auto-included relief claims.
- Add or amend any manual family or insurance relief you are entitled to.
- Submit your Income Tax Return by 18 April, then check your Notice of Assessment and use Amend Tax Bill within 30 days if a claim is wrong.
How to claim tax deductions in Singapore, and how do they work?
For companies and the self-employed: a tax deduction lets you subtract allowable business expenses from your income, so you pay tax only on the profit left. Tax deductions in Singapore cover costs you incur to earn that income, and you claim them in your tax computation when you file.
Here is how to claim tax deductions without losing any. IRAS treats expenses as deductible when they are incurred to produce income, so the paper trail matters, and a lost receipt often means a lost deduction.
IRAS gives an example. A business with S$80,000 income and S$15,000 of expenses, of which S$5,000 is deductible, is taxed on S$75,000. The other S$10,000 is non-deductible. IRAS also separates revenue expenses, such as salaries, rent and utilities, from capital expenses, which are not deducted this way.
- Keep every invoice and receipt for business spending.
- Keep business and personal spending in separate accounts.
- Record expenses in your books through the year, not at year-end.
- Have your accountant apply the deductions in your tax computation.
For more examples, read our guide to tax deductions for small businesses. Freelancers can also see tax for freelancers and the self-employed.
How to get tax credits as an SME in Singapore?
For companies: Singapore has few tax credits in the strict sense, because a tax credit offsets tax you have already paid. The main one is the Foreign Tax Credit for tax paid overseas on the same income. Most SMEs save tax through the CIT Rebate and enhanced deductions instead.
Here is how to get tax credits, and the schemes often mistaken for them:
- Foreign Tax Credit: a company can claim foreign tax credit for tax paid abroad against the Singapore tax payable on the same income. The credit is capped at the lower of the foreign tax paid and the Singapore tax on that income.
- Enterprise Innovation Scheme: this is an enhanced deduction, not a credit. The Enterprise Innovation Scheme gives 400% deductions on up to S$400,000 of qualifying spending a year for each of four activities, for YA 2024 to YA 2028. Eligible businesses can also convert up to S$100,000 of qualifying spending a year into cash at 20%.
- Progressive Wage Credit Scheme: this is government co-funding of wage increases, not a tax credit. Employers do not apply for the Progressive Wage Credit Scheme, and IRAS pays out in the first quarter of the following year (IRAS PWCS page).
For a wider list of company schemes, see our guide to tax incentives for businesses.
What tax exemptions can a company get?
For companies: a tax exemption leaves part of your income untaxed. Qualifying new companies get the Start-up Tax Exemption, which covers 75% of the first S$100,000 of chargeable income and 50% of the next S$100,000. It applies for the first three Years of Assessment.
That exempts up to S$125,000 of chargeable income a year, saving up to S$21,250 at the 17% headline corporate tax rate. Once those first three Years of Assessment end, or if a company does not meet the shareholding conditions for the start-up scheme, it moves automatically to the Partial Tax Exemption (PTE):
- 75% exemption on the first S$10,000 of normal chargeable income (S$7,500 exempt).
- 50% exemption on the next S$190,000 of normal chargeable income (S$95,000 exempt).
Under the Partial Tax Exemption, an established Singapore company can exempt up to S$102,500 of chargeable income each year, saving up to S$17,425 in tax before the CIT Rebate is applied. Our start-up tax exemption guide explains who qualifies and how the exemption is applied.
What is the tax rebate for 2026 in Singapore?
For YA 2026, every Singapore company receives a Corporate Income Tax Rebate of 50% of its tax payable, capped at S$40,000. Active companies with CPF contributions for at least one non-director local employee in 2025 also get a S$2,000 cash grant within that cap. IRAS applies both automatically, so you need not apply (IRAS rates and rebates).
Our guide to the corporate income tax rebate covers the cash grant in more detail.
As an illustration, a company with S$20,000 of tax payable gets a rebate of S$10,000 before any cash grant, so it pays S$10,000. The S$40,000 cap only bites for companies with tax payable above S$80,000.
For individuals: IRAS’s Personal Income Tax Rebate page lists 50% up to S$200 for YA 2024 and 60% up to S$200 for YA 2025. It lists no personal rebate for YA 2026, so do not plan around a tax rebate 2026 for individuals unless IRAS announces one.
What is the maximum tax relief Singapore allows, and which reliefs are most common?
For individuals: the most common forms of income tax relief in Singapore are Earned Income Relief, CPF Relief and Life Insurance Relief. The maximum tax relief Singapore allows is S$80,000 per Year of Assessment across all personal reliefs, so claims above that earn no extra benefit.
- Earned Income Relief: up to S$1,000 if you are below 55, S$6,000 at 55 to 59 and S$8,000 at 60 and above, limited to your taxable earned income. Higher amounts apply for persons with disabilities.
- CPF Relief for employees: covers your compulsory employee CPF contributions, up to the amount of those contributions, and voluntary MediSave contributions.
- Life Insurance Relief: nil if your compulsory CPF contributions are S$5,000 or more. Below that, you can claim the lower of S$5,000 less your CPF contributions, or your premiums paid up to 7% of the insured value.
- CPF Cash Top-up Relief: up to S$16,000 a year, which is S$8,000 for topping up your own account and S$8,000 for family members, for Singapore Citizens and Permanent Residents.
IRAS publishes the full list, so check the IRAS list of personal tax reliefs for others such as parent and child reliefs. Course Fees Relief lapsed from YA 2026.
How can Sleek help business owners with tax?
If you run a company, our qualified accountants prepare your ECI and Form C-S and apply the deductions and startup tax exemptions you are eligible for, then file on time with IRAS for a fixed fee. See our accounting and tax services or learn about ECI filing.
- You connect your accounting software or send your records.
- Your tax advisor computes your taxes and prepares your return, applying eligible deductions and exemptions.
- You review and approve, and Sleek files with IRAS.
To estimate your company’s bill first, try the corporate tax calculator. For more guides, browse the Sleek resources hub.
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FAQs on tax relief singapore
Can I claim tax relief and the start-up tax exemption at the same time?
Yes, if you are both an individual taxpayer and a company owner, because they apply to different taxpayers. Personal reliefs reduce your own income on your Income Tax Return. The start-up exemption applies to the company’s chargeable income on the company’s return.
Can students claim tax deductions?
Tax deductions apply to business expenses, so a student gets one only when running a business. A student with income, such as from a part-time job, can claim personal reliefs they qualify for, but only tax residents can. Course Fees Relief lapsed from YA 2026, so check IRAS for the reliefs that still apply.
How do I claim tax relief for donations?
Donations to approved institutions qualify for a 250% tax deduction, according to the IRAS tax explainer. Our guide to tax-deductible donations explains how to claim it.
Do I need to file an Income Tax Return to claim relief?
Generally, yes, if your total income last year was more than S$22,000, your self-employment net profit was more than S$6,000, or IRAS notified you (IRAS filing rules). If IRAS puts you under the No-Filing Service, you need not file. Your bill is then based on your auto-included income and last year’s relief claims.
