Staying up to date with Singapore tax updates 2026 is essential for individuals and businesses. The Inland Revenue Authority of Singapore (IRAS) and Budget 2025 introduced several major changes that continue to impact 2026. Here’s what you need to know to stay compliant and maximize your tax benefits.
📌 Important Note: This article covers tax changes announced in Budget 2025. The 60% individual tax rebate and 50% corporate tax rebate applied to Year of Assessment (YA) 2025 (income earned in 2024, filed in 2025). For YA 2026 filing (income earned in 2025, due by November 30, 2026), these rebates may differ—check Budget 2026 announcements for updates.
Tax Updates for Individuals
1. 60% Tax Rebate for Residents (YA 2025)
All Singapore tax residents received a 60% rebate on income tax for the Year of Assessment 2025, capped at $200. This one-time tax relief (commemorating SG60) helped reduce overall tax bills for income earned in 2024.
2. Higher Relief for Dependants
The qualifying income threshold for dependant relief increased to $8,000 (previously $4,000). This covers spouse relief, parent relief, qualifying child relief, Working Mothers Child Relief (WMCR), CPF cash top-up relief, and grandparent caregiver relief. This change makes it easier for more families to claim relief.
3. Fixed Working Mothers Child Relief (WMCR)
For children born or adopted from January 1, 2024, WMCR is a fixed amount:
- $8,000 for the first child
- $10,000 for the second child
- $12,000 for the third and subsequent children
4. Simplified Filing Process
Over 1.9 million Singapore taxpayers now benefit from the No-Filing Service (NFS), including many self-employed individuals, making tax season easier than ever.
Tax Updates for Businesses
1. 50% Corporate Income Tax Rebate (YA 2025)
Active companies received a 50% rebate on corporate income tax, up to $40,000 for Year of Assessment 2025 (income earned in 2024, filed in 2025). Qualifying businesses with at least one local employee in 2024 also received a minimum $2,000 cash grant. Check Budget 2026 for YA 2026 rebate announcements.
2. Renovation & Refurbishment (R&R) Cap
R&R deductions are capped at $300,000 for the 2025–2027 period, with claims now including designer and professional fees (excluding structural works).
3. Land Intensification Allowance and Section 13W Enhancements
- The shareholding threshold for LIA is now more than 50%.
- Section 13W includes preference shares and group-level shareholding assessment.
- The sunset clause has been removed for certain exemptions.
4. Share-Based Awards Deductions from YA 2026
Companies can claim tax deductions for employee share-based awards settled with newly issued shares, starting from Year of Assessment 2026.
5. Key Filing Deadline
Corporate tax returns for YA 2026 are due by 30 November 2026. Late filings may result in penalties up to $5,000. Mark your calendar!
GST Updates in Singapore 2026
- GST remains at 9% in 2026.
- Businesses forecasting over $1 million turnover can defer GST registration by up to two months (available since July 2025).
- Some regulatory fees are now GST-exempt, but related input tax cannot be claimed.
Key Takeaways
- Individuals and businesses benefited from significant tax rebates in YA 2025 (filed in 2025).
- Higher thresholds for dependant relief make family support easier.
- Corporate tax and GST changes require timely compliance.
- YA 2026 filing deadline is November 30, 2026—stay on track to avoid penalties.
- Stay updated with IRAS resources and consult a tax professional for detailed guidance.
Act now: Review your tax situation, update your records, and ensure timely filing for YA 2026. For more details, visit the IRAS website or contact Terra Advisory Services.
Disclaimer: This article summarizes major tax updates from Budget 2025 and does not constitute professional tax advice. Tax policies may change with Budget 2026. Please consult IRAS or a tax consultant for specific guidance.