Singapore Business Grants
What's Changed and How to Qualify
Singapore's Budget this year set a new corporate tax rebate, and the government then raised it twice more before the year was out. At the same time, three of the best known Singapore business grants closed, replaced by a single new scheme. If your company hasn't looked at this since the Budget speech in February 2026, several of the figures you might remember have already changed.
This guide sets out the current corporate tax rebate, the separate SME Cash Grant paid later this year, and what replaces the EDG grant, the Productivity Solutions Grant and the Market Readiness Assistance grant. It also covers grants for SMEs in Singapore more broadly, and where foreign owned companies stand under each scheme, since eligibility isn't the same across all of them.
The 2026 corporate tax rebate
The government set the corporate tax rebate at 40 per cent of tax payable, capped at $30,000, at Budget 2026 on 12 February, with a minimum cash grant of $1,500 for companies that employed at least one employee who is a Singapore Citizen or Permanent Resident (“local”) in 2025.
On 7 April, in response to the economic impact of the Middle East situation, the government raised the corporate tax rebate again. It now stands at 50 per cent, capped at $40,000, with the minimum cash grant increased to $2,000.
The $40,000 cap covers the rebate and the cash grant combined. The $2,000 is a floor, so a company with only a small tax bill still receives it in full.
The cash grant only pays out if your company employs at least one local employee., A shareholder who is also a director isn't counted towards this unless they have a contract of employment. If your Singapore entity runs entirely on Employment Pass holders, you still receive the 50 per cent corporate tax rebate. You don't receive the cash grant.
How to receive the corporate tax rebate
You don't apply separately for the corporate tax rebate. IRAS applies it automatically once your company files its ECI, Form C-S or Form C. For a company with a 31 December year end, Form C-S or Form C is due by 30 November. Our guide to corporate tax in Singapore covers ECI and the filing process in more detail, if you want to see how the rebate fits into your wider tax timeline.
The cash grant, where you qualify, is also paid automatically. No separate application or form is needed for either. You can check your company's eligibility for other schemes any time on GoBusiness Singapore.
The SME Cash Grant
A second, separate payment, outside the main Singapore business grants above, was announced on 29 July 2026, as part of the government's second package of support measures this year. This is the SME Cash Grant, and it's easy to confuse with the corporate tax rebate cash grant, so it's worth keeping the two apart.
The SME Cash Grant pays $500 for each local employee, capped at $2,500 per company, and is paid out in November 2026. No application is required. Eligible companies need at least one local employee during the year, and sole proprietorships or partnerships with a local owner but no employees still receive a flat $500.
Unlike the corporate tax rebate's cash grant, which is a fixed minimum regardless of headcount, the SME Cash Grant grows with the number of local employees you have, up to the $2,500 cap.
EDG, PSG and MRA close. The EDGE grant takes over.
Three of the grants Singapore businesses have relied on for years came to an end on 29 September 2026. The EDG grant, the Productivity Solutions Grant and the Market Readiness Assistance grant all closed. From 30 September 2026, Enterprise Singapore's new EDGE grant takes their place.
If you've used, or planned to use, the EDG grant for a transformation project, or Market Readiness Assistance for overseas expansion, you'll now apply through the EDGE grant instead. What the EDGE grant offers:
Support of up to 70% of costs for SMEs, and up to 50 per cent for larger companies, with the exact rate depending on the activity.
A combined cap of $100,000 in support per year, across all activities, resetting each 1 April.
Coverage across eight business areas, including automation, digitalisation, business strategy, innovation, internationalisation and sustainability.
Support is paid on a reimbursement basis, so you pay first and claim once the work is complete. As with the old EDG grant, you need approval before you sign contracts, pay a deposit or start work. A project that begins too early loses its funding.
If you have an EDG, PSG or MRA application already submitted, it continues to be processed under the old terms. Anything not submitted by 29 September 2026 will now go through the EDGE grant system instead.
The EDG grant required at least 30% local shareholding for its standard funding rate. Whether the EDGE grant carries the same requirement isn't yet clear from Enterprise Singapore's published guidance. If your company is majority foreign owned, check this directly with Enterprise Singapore or through GoBusiness Singapore before planning a project around it.
Startup SG and the IP Development Incentive
Outside the main grants for SMEs in Singapore covered above, two further schemes are worth knowing. Startup SG supports early stage and growth stage companies, typically through a Private Limited entity with local shareholding, usually alongside co-investment or proof of traction. The Intellectual Property Development Incentive isn't a grant but a tax concession, offering rates of 5, 10 or 15 per cent on qualifying IP income such as royalties and licensing fees. Neither scheme has had a confirmed change announced for 2026 at the time of writing, so check current terms on GoBusiness Singapore or with Enterprise Singapore before relying on older figures.
Other 2026 measures
A few further changes from this year are worth a mention, even outside the main Singapore business grants most companies ask about.
The cap for Double Tax Deduction for Internationalisation claims without prior approval rises from $150,000 to $400,000 from Year of Assessment 2027. The Enterprise Innovation Scheme now gives a 400% tax deduction on AI related spending, up to $50,000 a year, for YA2027 and YA2028. Under the Enterprise Financing Scheme, the government's share of the risk on SME working capital and project loans rises from 50-70%, from September 2026 to March 2027.
Which of these applies to your business
With this many changes to Singapore business grants in one year, the quickest way through is to work out which parts actually apply to your company.
Did you employ a CPF paying local employee in 2025?
This decides whether you receive the $2,000 minimum cash grant alongside the corporate tax rebate.
Do you employ local staff now?
This decides your SME Cash Grant in November.
Is a project planned for the next 12 months?
Apply through the EDGE grant, and get approval, before anything starts.
Is your ECI or Form C-S / Form C filed on time?
The corporate tax rebate depends on it. More details here.
Is your company majority foreign owned?
Confirm EDGE's shareholding rules directly, since this isn't yet published clearly.
Most grants for SMEs in Singapore, and the corporate tax rebate itself, are built around these same few questions. Getting them right first saves time later.
Frequently asked questions
We only employ Employment Pass holders. Do we get the cash grant?
You are still eligible to receive the 50% corporate tax rebate. You are not eligible to receive the $2,000 cash grant, since that requires at least one local employee.
We already submitted an EDG grant application. What happens now?
If the EDG grant was submitted prior to 26 September 2026, it will continue to be processed under the existing terms. You don't need to resubmit through EDGE.
Is the SME Cash Grant the same as the corporate tax rebate's cash grant?
No. The corporate tax rebate's cash grant is a fixed $2,000 minimum, paid with your tax assessment. The SME Cash Grant is a separate payment of $500 per local employee, capped at $2,500, paid in November.
Do we need to apply for the corporate tax rebate?
No. IRAS applies it automatically once you file your ECI, Form C-S or Form C.
Are grants for SMEs in Singapore still open to foreign owned companies?
Some are, some aren't. The EDG grant required local shareholding for its standard rate, and it isn't yet confirmed whether the EDGE grant does too. Check directly with Enterprise Singapore or GoBusiness Singapore if your company is majority foreign owned.
Talk to us before you plan around any of this
The changes above cover most of what a Singapore company needs to know for 2026, but the detail that actually applies to you depends on your structure, your local headcount and what you have planned. We can go through your position and tell you plainly what you qualify for, and what you don't.
Book a free introductory call with CSLB Asia, and we'll connect you with one of the experts on our team.