The Inland Revenue Authority of Singapore (IRAS) has confirmed an extension of the Year of Assessment (YA) 2025 Corporate Income Tax (CIT) Rebate cash grant, introducing a critical “active company” requirement tied to the grant’s disbursement.
To qualify for the rebate cash grant, companies must now be deemed “active” and must have met the stipulated local employee condition specifically at the time the cash grant is disbursed. IRAS has published explicit clarifications outlining circumstances under which a company will not be regarded as an “active company”:
- Lack of Business Activity: The company is not carrying on any trade or business, including the activity of holding investments.
- Liquidation Status: The company is currently in liquidation.
- Receivership: The company is under receivership concerning all of its properties.
- Cessation via Amalgamation: The company has ceased to exist due to amalgamation with another company.
These clarifications directly align with the provisions of Clause 40 within the draft Finance (Income Taxes) Bill 2025, reinforcing the legislative intent behind the eligibility criteria.
Key Implications: Companies anticipating the YA 2025 CIT Rebate cash grant must ensure they maintain “active” status as defined by IRAS, alongside meeting the local employee requirement, up to and including the point of disbursement. Entities falling into any of the four exclusionary categories listed above will not qualify for the grant.
Source: IRAS, 30 July 2025.