Budget 2026 touches nearly every grant and incentive that Singapore SMEs use. This hub provides a single reference for all changes, when they take effect, and where to find the detailed guide for each.
What Changed in Budget 2026?
| Source | Detail | Effective | |
|---|---|---|---|
| CIT Rebate 40% + S$1,500 cash grant | B-1 (A) | Max S$30K rebate; S$1,500 for companies with local employees in CY 2025 | YA 2026 / 2Q CY2026 |
| MRA → 70% support, then transitions to EDGE | B-1 (B)(i) | 70% for SMEs from 1 Apr 2026; MRA applications accepted through 29 Sep 2026, EDGE applications start 30 Sep | 1 Apr 2026 / 29-30 Sep 2026 |
| Internationalisation grants → 70% SME / 50% non-SME | B-1 (B)(ii) | BAG + GIA enhanced till 2029 | 1 Apr 2026 |
| EFS loan caps lifted (Fixed Assets + Trade) | B-1 (B)(iii) | Borrower/group caps removed; S$50M overall kept | 1 Apr 2026 |
| DTDi auto-deduction S$150K → S$400K | B-1 (B)(iv) | Higher cap for automatic deduction | YA 2027 |
| EIS: new AI activity (S$50K cap, 400%) | C-1 (D) | 5th qualifying category for AI expenditures | YA 2027 – YA 2028 |
| PSG: wider AI-enabled solutions | C-1 (E) | Wider digital and AI-enabled solution coverage; IMDA pre-approved AI solutions increasing from 30% to 50% | 2026 rollout |
| TeSA expanded to non-tech | C-1 (G) | Accountancy, legal sectors first | TBC |
| LQS raised to S$1,800 | Workforce | Local Qualifying Salary for WP/S Pass quota | Jul 2026 |
| EP minimum → S$6,000, S Pass → S$3,600 | Workforce | Higher salary thresholds for foreign work passes | 2027 |
| PWCS and Senior Employment Credit extended | Workforce | Wage co-funding and senior worker offsets continued | Budget 2026 |
| Champions of AI programme | C-1 | EnterpriseSG and DISG programme for enterprise-wide AI transformation | 2026 rollout |
| Startup SG Equity → S$1B expansion | B-1 | Scope expanded to growth-stage companies (previously early-stage only) | Budget 2026 |
| Anchor Fund → S$1.5B second tranche | B-1 | Co-investment with Temasek for growth-stage companies | Budget 2026 |
How Does the CIT Rebate and Cash Grant Work?
Budget 2026 provides a one-off 40% Corporate Income Tax rebate for YA 2026, capped at S$30,000 per company. On top of that, companies with at least one local employee in CY 2025 receive a S$1,500 cash grant — including loss-making firms with no tax payable.
Both are auto-disbursed in 2Q 2026. There is no application form and no BGP submission. The CIT rebate applies to all companies with tax payable; the cash grant requires the local employee condition.
For a full breakdown of how much you receive at different tax levels, see the detailed guide: Budget 2026 CIT Rebate & Cash Grant.
Which Internationalisation Grants Were Enhanced?
Three areas received significant upgrades effective 1 April 2026:
Market Readiness Assistance (MRA) provided 70% support for SMEs (up from 50%) from 1 April 2026, with applications accepted through 29 September 2026. From 30 September, overseas-expansion activities are supported under EDGE, at up to 70% for SMEs and up to 50% for non-SMEs.
BizAdapt Grant (BAG) and Global Innovation Alliance (GIA) both move to 70% SME / 50% non-SME support levels, valid through 2029. These support overseas expansion activities including market entry, pilot projects, and cross-border innovation programmes.
Double Tax Deduction for Internationalisation (DTDi) raises the automatic deduction cap from S$150,000 to S$400,000 from YA 2027, reducing paperwork for companies with moderate overseas marketing spend.
For detailed comparisons and decision matrices:
What Changed for AI and Innovation?
Enterprise Innovation Scheme (EIS) adds a 5th qualifying activity for AI expenditures: a 400% tax deduction on the first S$50,000 of AI-related spending per Year of Assessment, for YA 2027 and YA 2028. This covers AI software, cloud AI services, and AI consultancy — but excludes general IT hardware.
Productivity Solutions Grant (PSG) is being expanded to cover wider AI-enabled solutions. IMDA will increase the proportion of pre-approved AI-enabled solutions from 30% to 50%, and the GenAI Navigator helps SMEs identify tools matched to business needs. Current PSG pre-approved solutions remain available through BGP.
Both measures complement the existing EIS categories (R&D, IP registration, innovation projects, training) and provide stacking opportunities with the CIT rebate.
For full details and qualifying criteria:
How Do the EFS Financing Changes Help SMEs?
The Enterprise Financing Scheme (EFS) removes individual borrower and group-level caps for two loan types:
- EFS Fixed Assets — for equipment, machinery, and factory purchases
- EFS Trade Loan — for trade financing and inventory
The overall S$50M programme cap per borrower across all EFS loan types remains unchanged. The change takes effect from 1 April 2026 and makes it easier for growing companies to access larger individual loans without hitting sub-caps.
For full EFS loan type details, see: Enterprise Financing Scheme.
What Changed for Startups and Growth Capital?
Startup SG Equity receives a S$1 billion expansion, broadening its scope from early-stage startups to growth-stage companies. This means more mature startups that have moved past seed funding can now access government co-investment alongside private VCs.
The Anchor Fund launches a S$1.5 billion second tranche, maintaining its co-investment structure with Government and Temasek to back high-potential growth companies in Singapore.
Together with the existing RIE2030 commitment of S$37 billion (~1% of GDP annually), these measures signal a stronger pipeline from startup to scale-up.
For details on Startup SG Equity changes: Budget 2026 Startup SG Equity Expansion.
Who Benefits from the TeSA Expansion?
The TechSkills Accelerator (TeSA) programme expands beyond technology roles to cover non-tech sectors, starting with accountancy and legal. The aim is to help non-tech workers develop practical AI capabilities for role-specific workflows.
IMDA aims to launch the accountancy and legal AI fluency programmes in 1H 2026, with further details on training partners, application processes, and course duration shared during rollout.
When Does Each Change Take Effect?
| Changes | |
|---|---|
| 2Q 2026 | S$1,500 cash grant auto-disbursed to companies with local employees in CY 2025 |
| YA 2026 | 40% CIT rebate (capped S$30K) applies to tax payable |
| 1 Apr 2026 | MRA 70%, BAG/GIA 70% SME, EFS borrower caps removed |
| YA 2027 | DTDi auto-deduction raised to S$400K; EIS AI activity begins (400% on S$50K) |
| YA 2028 | EIS AI activity final year |
| Jul 2026 | LQS raised to S$1,800; PWCS and Senior Employment Credit extended |
| 2027 | EP minimum salary S$6,000; S Pass minimum S$3,600 |
| 2026 AI rollout | PSG AI-enabled solutions expansion; TeSA non-tech programmes; Champions of AI programme |
Business Refresh Package: EDGE and More
In March 2026, Enterprise Singapore announced the Business Refresh Package with additional enhancements beyond Budget 2026:
- EDGE — a new unified grant that replaced PSG, EDG, and MRA from 30 September 2026 (up to S$100K/year for all Singapore businesses)
- EEG extended one year to 31 March 2027
- EFS-Green extended five years to 31 March 2031
- EFS-M&A domestic support made permanent
- EVM and HEPG heartland programmes increased to 70% support
For full details: Business Refresh Package 2026 | EDGE Grant | EDGE vs PSG, EDG and MRA
What Should You Do?
- For immediate relief — ensure PayNow Corporate is set up to receive the S$1,500 cash grant in 2Q 2026. No application needed
- For internationalisation — MRA applications are accepted through 29 September 2026; from 30 September apply under EDGE, which supports SMEs at up to 70% and non-SMEs at up to 50%
- For AI adoption — start tracking AI spending now for EIS AI claims (YA 2027). Check the PSG catalogue and IMDA GenAI Navigator for pre-approved AI-enabled tools before scoping EDG or EIS claims
- For financing — if your growth needs exceed old EFS individual caps, approach Participating Financial Institutions for larger Trade or Fixed Assets loans from 1 April 2026
Frequently Asked Questions
Do I need to apply for the CIT rebate or cash grant?
No. Both are automatic. The 40% CIT rebate is applied to your YA 2026 tax assessment, and the S$1,500 cash grant is auto-disbursed in 2Q 2026 to companies with at least one local employee in CY 2025.
Which changes require a BGP application?
MRA, EDG, PSG, and BAG/GIA still require BGP applications. The CIT rebate, cash grant, DTDi auto-deduction, EIS, and EFS do not go through BGP.
Can I benefit from multiple changes at once?
Yes. These measures are designed to stack. For example, a company could receive the CIT rebate, claim EIS AI deductions, apply for MRA at 70%, and use EFS for trade financing — all simultaneously.
When should I act?
The CIT rebate and cash grant are automatic (2Q 2026). MRA/BAG/GIA/EFS changes take effect 1 April 2026 — apply after that date. EIS AI starts YA 2027 but track expenses from 2026.
Which Guides Cover Each Change in Detail?
Cost Relief
- Budget 2026 CIT Rebate & Cash Grant — full breakdown, examples at different tax levels
Internationalisation
- Budget 2026 Internationalisation Grants — MRA, BAG, GIA old-vs-new comparison
- Budget 2026 Expansion Grants Decision Matrix — which grant fits your overseas plans
- MRA Budget 2026 Changes — MRA-specific walkthrough
- DTDi Budget 2026 Changes — DTDi auto-deduction details
AI & Innovation
- Budget 2026 AI & Innovation Grants — EIS AI activity, PSG AI, CIT interaction
- EIS Budget 2026 AI Changes — EIS qualifying criteria deep dive
Workforce & Hiring
- Budget 2026 Workforce & Hiring Costs — LQS, EP, S Pass thresholds, PWCS, Senior Employment Credit
AI Programmes
- Champions of AI Programme — EnterpriseSG and DISG programme for enterprise-wide AI transformation
- Budget 2026 AI Grants Decision Matrix — which AI grant fits your needs
- Budget 2026 AI Skills & Free Tools — SkillsFuture AI courses and free premium tools
- National AI Missions Singapore 2026 — four national AI mission sectors
Startup & Growth Capital
- Budget 2026 Startup SG Equity Expansion — S$1B expansion to growth-stage companies
Financing
- Enterprise Financing Scheme — all EFS loan types and caps
- Budget 2026 EFS Higher Loan Caps — borrower cap removal details
Where Can You Find the Official Budget Documents?
- Budget 2026 Statement — Ministry of Finance
- Annex B-1: Enterprise Support — CIT rebate, MRA, DTDi, EFS, BAG/GIA details
- Annex C-1: Innovation & AI — EIS AI, PSG, TeSA changes
- Annex H-1: Support Measures — cash grant details
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