SINGAPORE: Shares of Grab Holdings Limited traded higher on Tuesday (Feb 20) after a 50 per cent corporate income tax rebate for Singapore companies in the 2025 assessment year was announced as part of Budget 2025.
According to Benzinga, Grab’s stock rose as investor confidence grew following the government’s efforts to support businesses with tax incentives. As a major ride-hailing and delivery platform in Southeast Asia, Grab is expected to benefit from the tax relief as it expands and manages rising costs.
Prime Minister Lawrence Wong stated that the rebate, capped at S$40,000 per company, will help businesses with cash flow needs as they adjust to structurally higher costs, according to The Business Times.
PM Wong, who is also Finance Minister, said in his Budget 2025 speech: “Higher prices … affect our businesses, many of whom are grappling with the higher cost of rent and labour.”
All active firms employing at least one local worker in 2024 will receive a minimum benefit of S$2,000, even if they are not profitable, Channel News Asia reported.
The Ministry of Finance stated that eligible companies will automatically receive the rebate from the second quarter of 2025.
Analysts have reacted positively to the announcement, noting that it builds on past government efforts and could help businesses invest in technology, workforce development, and productivity. Some experts, however, pointed out that the rebate may benefit profitable companies more, while those operating at a loss may see limited relief. /TISG