New Corporate Income Tax (CIT) Rebate and CIT Rebate Cash Grant for YA2024

In Budget 2024, Singapore’s IRAS announced a Corporate Income Tax (CIT) rebate and a CIT Rebate Cash Grant to help companies manage rising costs. This initiative aims to provide financial relief and support to businesses during economic challenges.

Key Features of the CIT Rebate for YA2024

1. Rebate Percentage and Cap

• CIT Rebate: 50% of the corporate tax payable, capped at $40,000.
• CIT Rebate Cash Grant: $2,000 cash payout for companies meeting the local employee condition (having at least one local employee in 2023).

2. Eligibility Criteria

• Available to all tax-paying companies, whether resident or non-resident.
• Companies must file their income tax returns for YA2024.

3. Automatic Application

• No separate application needed; the rebate is automatically granted based on the corporate income tax payable.

CIT Rebate Cash Grant

• Purpose: Support smaller companies that would otherwise receive little or no CIT Rebate.
• Eligibility: Companies must have made CPF contributions to at least one local employee (excluding shareholders who are directors) in 2023.
• Automatic Grant: Eligible companies will receive the cash grant by Q3 2024. This grant is non-taxable.

Special Arrangements

• Centralized Hiring and Secondment: Companies can qualify under these arrangements if they meet certain conditions and can provide supporting documentation.
• Appeals: Companies that do not receive the cash grant by Q3 2024 but meet the conditions can appeal via myTaxMail by November 30, 2024.

CIT Rebate Specifics

• Application: Applies to income taxed at a concessionary rate but not to income subject to final withholding tax.
• Exclusion from Returns: Chargeable income in tax returns should not include the CIT Rebate. IRAS will automatically compute and allow the rebate based on submitted returns.

Conclusion

The CIT rebate and CIT Rebate Cash Grant provide significant financial support to businesses in Singapore, particularly SMEs. By meeting eligibility criteria and filing timely tax returns, companies can benefit from reduced tax liability and additional financial relief, helping them navigate economic challenges more effectively.

For detailed information, visit the IRAS official page.