IRAS Corporate Tax Rebate Eligibility, Amount, Status and Timeline!

Singapore businesses seize the opportunity with IRAS Corporate Income Tax (CIT) Rebate, offering up to S$52,500 for YA 2024. Lighten your tax burden and boost your cash flow for economic stimulation.

IRAS Corporate Tax Rebate

The IRAS Corporate Income Tax (CIT) Rebate offers a welcome boost to your finances, with up to S$52,500 potentially waiting to be claimed for the Year of Assessment (YA) 2024. 

This initiative, designed to lighten the tax burden and stimulate economic activity, could be a significant injection of cash flow for your company.

Beyond the base rebate, companies that employed at least one local employee in 2023 (meeting the “local employee condition”) are also eligible for the CIT Rebate Cash Grant.

IRAS Corporate Tax Rebate Eligibility

To claim the IRAS Corporate Tax Rebate for Year of Assessment (YA) 2024 (covering income earned in 2023), your company needs to meet the following eligibility criteria:

  • Filed all required tax returns: Ensure you have submitted all necessary forms to IRAS on time, including Form C-S/ Form C-S (Lite)/ Form C.
  • Chargeable income below S$1 million: This applies to your company’s taxable income after allowable deductions and expenses.
  • Registered business entity: You must be a registered business in Singapore, including registered business trusts and variable capital companies.
  • Automatic application: The rebate is automatically computed and applied by IRAS based on your tax return information, so no separate application is required.
  • Local employee condition: Companies that meet the “local employee condition” (made CPF contributions to at least one local employee in 2023) are eligible for the CIT Rebate Cash Grant, regardless of their chargeable income. 
  • ZThis grant is automatically dispersed by IRAS in the third quarter of 2024.

IRAS Corporate Tax Rebate Amount

Rebate amount in Year of Assessment (YA) 2024 (income earned in 2023):

Rebate Calculation:

IRAS Corporate Tax Rebate

The rebate is calculated based on a tiered system:

  • First S$10,000 of chargeable income: 75% rebate
  • Next S$90,000 of chargeable income: 50% rebate

Maximum Rebate:

This tiered calculation leads to a maximum potential rebate of S$52,500, reached when your chargeable income falls within the 

following range:

  • Chargeable Income Range: S$10,000 – S$100,000
  • The rebate amount is capped at S$52,500, regardless of your chargeable income exceeding S$100,000.
  • The rebate is not taxable income and should not be included in your chargeable income declaration.
  • If your chargeable income is below S$10,000, you still receive a rebate calculated at 75% of your entire income.

CIT Rebate Cash Grant: 

  • Companies that meet the “local employee condition”(having made CPF contributions to at least one local employee in 2023) are eligible to receive a $2000 grant, regardless of their chargeable income. 
  • This grant is automatically disbursed by IRAS in the third quarter of 2024, regardless of the company’s chargeable income.

Other Tax Reliefs: Explore other tax reliefs and deductions offered by IRAS if your income exceeds S$1 million.

IRAS Corporate Tax Rebate Status

Since the IRAS Corporate Tax Rebate is applied automatically, there’s no specific “status” to check as such. However, you can confirm whether the rebate was applied and determine the final tax amount due. Here’s how to do it online:

Access the myTax Portal:

  • Visit the IRAS website: https://www.iras.gov.sg/
  • Select “myTax Portal” and login using your Singpass or Singpass Foreign user Account (SFA).

View Your Corporate Tax Filing Status:

  • On the myTax Portal dashboard, select “View Corporate Tax Filing Status.”
  • Choose the relevant Year of Assessment (YA) – in this case, YA 2024.

Review Your Notice of Assessment (NOA):

  • Upon selecting the year, you’ll access your NOA. This document showcases your final tax assessment after considering the applied rebates and taxes due.
  • Look for the line item mentioning “CIT Rebate” or “Tax Relief Claimed.” This amount reflects the rebate applied based on your eligible income.

Verify Other Taxable Income:

  • Ensure that all your taxable income has been accurately declared in your tax return. Any discrepancies might affect the rebate calculation.

Contact IRAS if needed:

  • If you have concerns about the rebate amount or tax assessment, contact IRAS through their website or hotline for further clarification.

IRAS Corporate Tax Rebate Timeline

While there’s no specific “application” and waiting period for the rebate itself, here’s an overview of the overall process:

  • File your Form C-S/ Form C-S (Lite)/ Form C: This should be done within the stipulated time frame as per your company’s filing due date.
  • IRAS Processes Your Return: IRAS assesses your return and considers any applicable tax reliefs or rebates,including the Corporate Tax Rebate.
  • Receive Your NOA: Once your assessment is complete, IRAS will issue your NOA electronically through your myTax Portal account. You’ll see the final tax amount due, which takes into account the applied rebate.

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