Posted on

Rental Relief for SME Tenants in Private Non-Residential Properties

For SME tenants (i.e. with not more than $100 million in annual turnover) with qualifying leases or licences commencing before 25 March 2020, the Government will provide a new cash grant to offset their rental costs as stated in Table 1.

SME property owners who run a trade or business on their own property will also be eligible for the new cash grant. Vacant property and land under development will not be eligible.

Implementation of the New Government Cash Grant

The new government cash grant will be disbursed automatically by IRAS to the qualifying property owners.

The amount of grant will be calculated based on the Annual Values of properties for 2020, as determined by IRAS at 13 April 2020.

For property owners whose properties are only partially let out, or whose properties are let out to both SME and non-SME tenants under a single property tax account, they will not automatically receive the government cash grant.

In such instances, the property owner should submit an application to IRAS, and provide supporting documents, including proof of SME tenants within its property. IRAS will pro-rate the government cash grant accordingly.

Posted on

Fortitude Budget 2020

Job Support Scheme ("JSS")

Current Treatment

The temporary enhancement to  the JSS for the month of April 2020 will raise the wage support to 75% in that month. This will apply to the first S$4,600 of gross monthly wages paid to local workers (Singapore Citizens and Permanent Residents) in all sectors.

The first JSS payout (“Payout 1”) has been brought forward to  April 2020.

For April 2020 payment, the government will give an Cash Grant of up to 75% of Oct 2019 wages. Subsequently, the Cash Grant in July 2020 will be adjusted downwards by 50% of Oct 2019 wages.

New Treatment

Extended for 1 more month to cover wages paid in August 2020, bringing a total coverage to 10 months of wages. The support for August 2020 wages will be paid out in October 2020 (see Table 1 for an overview of the JSS payment schedule).

  • 25% to 75% of the first $4,600 of wages for each local employee

Only employers who are not  allowed to resume operations will continue to receive 75% support for wages paid to local employees, during the period for which they are not allowed to resume operations, or until August 2020, whichever is earlier. Pro-ration will be applied if operations resume in the middle of the month.

Increased support for some affected sectors (e.g. aerospace, retail, marine and offshore) from 25% to 50% or 75%

SGUnited Jobs

Current Treatment

10,000 jobs will start with the public sector recruiting for long-term roles in essential services such as social services, early childhood education and infocomm technology.

Temporary jobs to handle the increase in Covid-19-related operations will also be available in roles such as health declaration assistants and temporary management support officers.

Private sector job opportunities will also be identified together with the Singapore Business Federation and other trade associations and chambers. 

There will be a series of SGUnited Jobs Virtual Career Fair (VCFs) upcoming up.Details of the VCF is available here: mycareersfuture.sg

New Treatment

40,000 jobs aimed to be created in 2020 of which about 15,000 openings will be in the public sector. These consist of a variety of long-term and short-term roles, to meet future and immediate needs. 

The public sector is bringing forward agencies’ hiring plans, creating jobs in new capabilities and functions, and creating short-term jobs arising from COVID-19 operations. The public sector will also provide two-year positions to local jobseekers and train them in key capability areas, to eventually place them in relevant private sector jobs.

The relevant Government agencies will work with businesses to create about 25,000 jobs. To help jobseekers continue to access good longer-term job opportunities, agencies will also work with programme partners to scale up the capacity of career conversion programmes, including the Adapt and Grow programmes, to more than 14,000 places this year, especially in growth sectors such as Infocomm & Technology and Financial Services.

SGUnited Traineeships and Mid-Career Traineeships

Current Treatment

Workforce Singapore (WSG) will co-share manpower costs with enterprises that offer up to 8,000 traineeships targeted at local first-time jobseekers this year.

Firms that offer traineeships targeted at local first-time job seekers this year can receive funding from government agency Workforce Singapore (WSG) under this SGUnited Traineeships programme.

These will include science and technology stints in research and development labs, deep-tech start-ups, accelerators and incubators, said DPM Heng.

Participants will receive an allowance co-funded by the Government and firm they are attached to.

New Treatment

Given the strong interest from businesses and public agencies, the Government aims to more than double the number of traineeships available for our young locals this year, from 8,000 to 21,000. Of these, there will be new traineeship positions in our R&D sector, including our universities, A*STAR research institutes, AI Singapore, and local deep-tech startups through SG Innovate. Recent and new graduates can apply for these opportunities on MyCareersFuture.sg from 1 June 2020 onwards.

To cater to the needs of mid-career individuals, we will create a new SGUnited Mid-Career Traineeships programme, to facilitate about 4,000 more traineeships for unemployed midcareer jobseekers looking to gain meaningful industry-relevant work experience and boost employability for future job opportunities. This will be on top of the 21,000 opportunities under the SGUnited Traineeships. More details will be provided in due course.

Overall, both programmes aim to facilitate about 25,000 traineeship opportunities for our young locals and experienced professionals.

SGUnited Skills

Current Treatment

Not applicable.

New Treatment

The SGUnited Skills (SGUS) programme is a full-time training programme ranging from 6 to 12 months. The programme will comprise certifiable courses delivered by companies and the Continuing Education Training (CET) Centres, including Institutes of Higher Learning. The training courses are designed in partnership with the industry, and can include companies co-delivering and co-designing the programme with training providers. Trainees will also have the chance to apply the skills learnt during the programme, through opportunities like workplace immersions and industry projects.

Trainees will also benefit from employment facilitation efforts offered by training providers. To facilitate transition to employment as and when job opportunities are present, the SGUS programme will be conducted in a modular format.

Trainees will also receive a training allowance of $1,200 per month for the duration of the programme, to cover basic subsistence expenses. Course fees will be highly subsidised, to keep SGUS affordable. Individuals can use their SkillsFuture Credit to offset the course fees.

More details on the SGUS programme will be provided by the Ministry of Education. 

Hiring Incentive

Current Treatment

Employers who hire local workers aged 40 and above through eligible reskilling programmes. For each eligible worker hired, the employer would receive 20% salary support for six months, capped at $6,000 in total. Eligible reskilling programmes were the Professional Conversion Programmes (PCPs), Place-and-Train (PnT) programmes for rank-and-file workers, and career transition programmes by Continuing Education and Training (CET) centres.

New Treatment

the Hiring Incentive will be enhanced to cover local workers of all ages, with increased support for those aged 40 and above. We will also expand the list of eligible reskilling and training programmes. The enhanced Hiring Incentive will be applicable to any hire from eligible reskilling programmes from 27 May onwards. A summary of the enhancements to the Hiring Incentive is in Table 2. 

Foreign Worker Levy Waiver & Rebate

Current Treatment

  • Waiver of monthly Foreign Worker Levy (FWL) due in April 2020 to help firms with cash flow
  • FWL rebate of $750 in April 2020 from levies paid this year, for each Work Permit or S Pass holder

New Treatment

Extended by up to 2 months for businesses that are not allowed to resume operations after the circuit breaker.

  • 100% waiver and $750 rebate in June 2020
  • 50% waiver and $375 rebate in July 2020 

As at 27 June 2020, construction firms will also be eligible for Foreign Worker Levy rebates of $90 per month for each work permit holder, from August 2020 to December 2021.

Deferment of Higher CPF Contribution Rates

Current Treatment

Not applicable.

New Treatment

To help businesses manage costs in these challenging times, the Government will defer the planned increase in CPF contribution rates for senior workers by one year, from 1 January 2021 to 1 January 2022. The CPF Transition Offset scheme will similarly be deferred until after the higher contribution rates take effect.

Expanding Rental Relief for SMEs

Current Treatment

  • 1-month rental waiver for office, industrial, and agriculture tenants of Government agencies.
  • Laws to ensure property owners pass on Property Tax rebate to tenants.

New Treatment

$2 billion in cash grants to help SME tenants with rental costs

Including the Property Tax Rebate for 2020, Government will:

  • Offset 2 months’ rental for qualifying SME tenants of commercial properties
  • Offset 1 month’s rental for qualifying SME tenants of industrial and office properties

Rental Relief for Government Tenants

Current Treatment

Stallholders at hawker centres and markets managed by the National Environment Agency (NEA) will be given three months’ worth of rental waiver, with a minimum waiver of $200.

Commercial tenants in other government-owned or managed facilities will be provided with two months’ worth of rental waivers. 

Other Non-Residential Tenants. Government agencies such as JTC, SLA, HDB, URA, BCA, NParks, and PA will provide half a month’s worth of rental waiver to eligible tenants of other non-residential premises who do not pay Property Tax. Eligible tenants/lessees may include those in premises used for
industrial or agricultural purpose, or as an office, a business or science park, or a petrol station.

New Treatment

Additional 2 months of rental waivers for commercial tenants and hawkers. The total rental waiver will now be four months for commercial tenants. Stallholders in hawker centres and markets managed by Government
agencies will get a total of five months of rental waivers. 

For industrial, office, and agricultural tenants of Government agencies, one more month of rental waiver will be provided. A total of two months of rental waiver will be received.

Financing Support for Promising Startups

Current Treatment

  • Enterprise Financing Scheme – SME Working Capital Loan
  • Enterprise Financing Scheme – Trade Loan
  • Loan Insurance Scheme
  • Temporary Bridging Loan Programme (TBLP)

New Treatment

$285 million of additional financing support for promising startups by co-investing with the private sector

  • On top of $300 million set aside under the Unity Budget for deep-tech startups

Adopting e-Payments

Current Treatment

Not applicable.

New Treatment

Bonus of $300 per month over 5 months to encourage adoption of e-payments by stallholders in 

  • Hawker centres
  • Wet markets
  • Coffee shops
  • Industrial canteens

Digital Resilience Bonus

Current Treatment

  • E-invoicing Registration Grant
  • Advanced Digital Solutions
  • SMEs Go Digital

New Treatment

Eligible businesses can receive a payout of up to $5,000 if they adopt PayNow Corporate and e-invoicing, as well as business process or e-commerce solutions.

Businesses which already have basic digital capabilities, should deepen their digital transformation. We will help them make use of advanced digital tools in an integrated way. 

  • The Digital Resilience Bonus will have an additional tier of $5,000 for F&B and retail businesses which also incorporate advanced solutions.

National Innovation Challenges

Current Treatment

Not applicable.

New Treatment

Encourage partnership with the private sector for industry-led solutions to reopen Singapore safely

Covid-19 Support Grant (CSG)

Current Treatment

The scheme eligibility criteria are as follows:

  • Singapore Citizens or Permanent Residents, aged 16 years and above,
  • who are presently unemployed due to retrenchment or contract termination as a result of the economic impact of the COVID-19 situation, and meet all of the following:
  • Had a monthly household income of not more than $10,000, or per capita household income not more than $3,100 per month prior to unemployment;
  • Lives in a property with an annual value of not more than $21,000; and
  • Not currently receiving ComCare Short-to-Medium Term Assistance(SMTA) or ComCare Interim Assistance.
  • The applicant must have been employed as a full-time, or part-time permanent, or contract staff prior to unemployment.

Successful applicants will receive a monthly cash grant of S$800, for three months.

The scheme will be open for application from May 2020 to September 2020.

Individuals who are eligible may submit their application at their nearest Social Service Office,

New Treatment

Support for Singaporeans and PRs who:

  • Have lost their jobs;
  • Are placed on no-pay leave; or,
  • Face significantly reduced salaries

Up to $800 per month for 3 months for eligible recipients

Solidarity Utilities Credit

Current Treatment

New Treatment

  • One-off $100 Solidarity Utilities Credit for each household with at least one Singapore Citizen
  • Covers all property types
  • Will be credited in households’ July or August 2020 utilities bills with SP Group
  • Larger households with five or more members get more, and can receive up to $1,000 in U-Save rebates this year

For Students and Seniors - Fostering Digital Inclusion

Current Treatment

Not applicable.

New Treatment

For Students

  • Accelerated timeline for all secondary school students to own a digital learning device

For Seniors

  • Seniors Go Digital movement to build digital literacy through one-to-one coaching and small-group learning
  • Financial support for lower-income seniors to own digital devices

Enhanced Fund-Raising (EFR) Programme​​

Current Treatment

Totalisator Board (TB) provides 40% matching on donations raised by charities, capped at $100,000 per fund-raising project. For example, an eligible charity project which raises $10,000 will receive $4,000 in matching grants from TB. This applies to all modes of donations, including those through approved digital platforms such as Giving.sg or the websites of the individual charities.

New Treatment

  • Dollar-for-dollar matching on eligible donations raised between 1 April 2020 to 31 March 2021, capped at $250,000 matching per charity
  • Additional $100 million top-up to strengthen support for charities
To be eligible, the charity must be registered with the Commissioner of Charities. Qualifying donations are those raised through approved fund-raising projects commencing from 1 April 2020 to 31 March 2021 (both dates inclusive). In addition, the fund-raising project should not have benefited from other Government matching funds, such as the Cultural Matching Fund or the Bicentennial Community Fund.

Invictus Fund

Current Treatment

Not applicable.

New Treatment

The Invictus Fund was set up by the National Council of Social Service (NCSS) to channel donations to SSAs which deliver critical social services to vulnerable groups during COVID19. The Invictus Fund is supported by donations raised through Community Chest, which
receives 20% matching from the Bicentennial Community Fund.

As at 22 May 2020, $6.2 million has been raised for the Invictus Fund. 171 SSAs applied for the Invictus Fund in the first round of applications.


The Government will provide a top-up of $18 million to the Invictus Fund to enhance support for SSAs which continue serving their beneficiaries during this period. 

Construction Support Package

Construction Restart Booster

A $525.8 million construction restart booster will be made available to help construction firms, which have to incur additional compliance costs unique to the sector in order to resume works safely. This funding will co-share contractors’ costs in procuring additional material/equipment to comply with COVID-Safe Worksite requirements (e.g. additional portable toilets, PPEs, masks, barricades). The funding will be given to construction projects regardless of whether they have restarted or are pending restart, as these compliance costs would eventually be incurred.

Co-funding salaries of Safe Management Officers (SMOs)

Contractors are required to deploy SMO(s) to ensure that safe management measures are implemented at construction worksites. Even though the SMO position can be taken up by an existing employee rather than as a new hire, Government will set aside $48 million to co-fund 50% of salaries of SMOs who are Singapore citizens or permanent residents for six months from September 2020 to February 2021, provided that the firms adhere to COVID-Safe Worksite practices.

Co-sharing of prolongation costs for public sector projects

Government Procurement Entities (GPEs) will co-share the prolongation costs for public sector construction contracts and tenders which closed before 1 June 2020. This will add up to $793 million. GPEs will co-share 50% of the prolongation cost, capped at 1.8% of contract sum. Main contractors for public sector construction projects may submit claims for the following prolongation cost for delays which are accompanied by certified Extensions of Time (EOTs) due to COVID-19:

a)    Rental of plant and equipment by main contractors and the sub-contractors;
b)    Other project-related costs such as vector control, insurance, etc.

In these challenging times, developers undertaking private sector projects should also likewise adopt similar practices to co-share prolongation costs with contractors for private sector projects.

Extension of Advance Payment for public sector projects

As some construction projects have not fully resumed work yet, the Government will extend advance payment to firms working on public sector projects. Main contractors of public sector projects were earlier granted advance payments for the months of April and May 2020. GPEs will now extend advance payment up to the point when the projects have obtained approval to restart, subject to a total advance payment cap of 5% of the project’s awarded contract sum or $10M, whichever is lower. Main contractors will be required to pass on a portion of the advance payment to their sub-contractors within two weeks of receiving the payment certificate from GPEs.

Extension of Government subsidies for COVID-19 tests

As part of BCA’s COVID-Safe Workforce criteria, employers should ensure that their employees undergo periodic swab tests to safeguard the health and safety of their employees as required. This includes all construction work permit holders and S Pass holders (except for those working in company office premises) and Singapore Citizens/ Permanent Residents/ Employment Pass holders working on construction sites. The Government had earlier announced that it would pay for the periodic swab test for construction work permit holders and S-pass holders, up to August 2020. The Government will now continue to bear the costs of COVID-19 testing for the construction sector until 31 March 2021, to help ensure a safe restart of the construction sector.

Posted on

How to pass property tax rebate from property owner to tenant

Resilience Budget on property tax

As part of the Resilience Budget announced on 26 Mar 2020, qualifying nonresidential properties (“qualifying properties”) will be granted up to 100% of property tax rebate for the period of 1 Jan 2020 to 31 Dec 2020.

For most properties that are eligible for 100% property tax rebate, this is equivalent to slightly more than one month’s rental.

Owners of qualifying properties are required to unconditionally and fully pass on to their tenant(s) the rebate for the property tax account that is attributable to the rented property, by either reducing or offsetting current or future rentals or through a payment to their tenant(s), within the prescribed time frame.

Prescribed Amount of Rebate for Passing on – Where the Whole Property is Leased or Licensed to Single Tenant

There are two options for the property owner to fulfil his obligation in passing on the prescribed amount of rebate to his tenant(s), Option 1A and Option 2A.

Option 1A

The owner must pass on to a tenant the total of the sums calculated for each month of the year 2020 in which the tenant rents the property.

PTR / 12 X D/D(Month)

“PTR” is:
(a) the rebate amount for the property before any change in circumstances occurs;
(b) Zero, if there is no rebate amount mentioned in (a); 

“D” is the number of days in the month for which the tenant is a prescribed lessee or prescribed licensee of the property;

“D(Month)” is the number of days in the month

Option 2A

The property owner may choose to pass on the whole of the rebate amount of the property to:
(a) The tenant of the property on 3 April 2020;
(b) If there is no tenant as mentioned in (a) for the property, the first tenant  of the property in the period between 4 April 2020 and 31 July 2020 (both dates inclusive); or
(c) If there is no tenant of the property, in paragraphs (a) or (b), then only Option 1A applies.

Prescribed Amount of Rebate for Passing on – Where Part of Property is Leased or Licensed to Tenant or Different Parts of the Property are Leased or Licensed to Different Tenants

There are two options for the property owner to fulfil his obligation in passing on the prescribed amount of rebate to his tenant(s), Option 1B and Option2B.

The property owner has to adopt the same option, either Option 1B or Option 2B, in respect of the different parts of the property.

Option 1B

The owner must pass on to a tenant the total of the sums calculated for each month of the year 2020 in which the tenant is such a lessee or licensee.

𝑁𝑅 × 10% × 𝑃𝑇𝑅(%) × 𝐷/𝐷(𝑀𝑜𝑛𝑡ℎ)

“D” is the number of days in the month for which the tenant is a prescribed lessee or prescribed licensee of the part of the property;
“D(Month)” is the number of days in the month;
“NR” is the net rent* payable by the tenant for the part of the property for the month;
“PTR(%)” is the rate of the property tax rebate granted for the part of the property

*This net rent is the rent, licence fee or similar payment payable by the prescribed lessee or prescribed licensee of the property or part of the property to the owner of the property under the lease or licence agreement between the prescribed lessee or prescribed licensee and the owner which (a) Includes the following amounts payable under the agreement:
(i) any amount determined by the gross turnover (GTO)** of any business carried on by the lessee or licensee at the property or part of the property;
(ii) fees for repair, insurance, maintenance and upkeep of the property or part of the property, and property tax payable by the owner; but
(b) Excludes the following amounts payable under the agreement:
(i) any amount in respect of the provision of services (e.g. cleaning,
refuse disposal and advertising and promotion) by the owner to the lessee or licensee; and (ii)any goods and services tax.

Where for any month, the month amount plus previous months cumulative amount determined using Option 1B for every tenant  would together exceed the rebate amount for the property, the amount of that rebate amount less the previous months cumulative amount is to be passed on to each tenant on a proportionate basis if there is more than one subject tenant; or the tenant in whole, if there is only one tenant

Option 2B

The property owner may choose to pass on the rebate for each part of the property as follows:
(a) Where the part of the property is granted a property tax rebate of 100% or 60%, an amount of at least 1.2 x AR
(b) Where the part of the property is granted a property tax rebate of 30%, an amount of at least 0.36 x AR
to the tenant as follows:

(i) The tenant of the part of the property on 3 Apr 2020;
(ii) If there is no tenant as mentioned in paragraph 9.17(i) for the part of the property, the first tenant of that part in the period between 4 Apr 2020 and 31 Jul 2020 (both dates inclusive); or
(iii) If there is no tenant of the property, in paragraphs 9.17(i) or (ii), then only Option 1B applies. 

“AR”’ is the average net rent* per month payable by the tenant for the part of the tenant’s lease or licence that falls in the period starting on 1 Jan 2020 and the last day of the month immediately before the month in which the owner passes on or begins to pass on the benefit (both days inclusive). If the duration of the lease or licence in the period 1 Jan 2020 and the last day of the month in which the owner passes on or begins to pass on the rebate (both days inclusive) is less than one month, the net rent payable for that part of the month must be used to determine a proportionate amount for the whole month, which is then to be treated as the average net rent per month for the period.

Where the sum total of the amounts determined for all such tenants of the property would exceed the rebate amount for the property, then the amount of rebate must be passed to those tenants on a proportionate basis.

 

 

Posted on

Support Measures during extended Circuit Breaker period until 1 June 2020

On 21 April 2020, the Multi-Ministry Taskforce announced that it would extend the circuit breaker period until 1 Jun 2020 (inclusive).

Supporting Workers and Businesses

The Government will extend the 75% JSS on the first $4600 of gross monthly wages for local employees across all sectors for another month, i.e. in the month of May 2020. This enhanced payout for May 2020 will be disbursed by end-May 2020 via PayNow or having existing GIRO arrangements with IRAS. Other employers will start receiving their cheques in early-June. The Government encourage all employers to sign up for PayNow to receive payouts faster.

Similar to the arrangement for April, the 75% subsidy for May 2020 will first be computed and disbursed based on November 2019 wages, thereby ensuring speedy disbursement. Subsequently, we will adjust future JSS payouts to account for actual wages paid in May 2020, relative to November 2019. 

Employers who put local employees on mandatory no-pay-leave or retrench them will not be entitled to the enhanced JSS payout for those employees.

Jobs Support Scheme ("JSS") to cover Shareholder-Directors

The Government has extended the Jobs Support Scheme, to cover wagers of employees of a company who are also shareholders and directors of the company. 

This support is only applied to companies that were registered on or before 20 April 2020, and for the wages of shareholder-directors with Assessable Income of $100,000 or less for Year of Assessment 2019. The May 2020 and subsequent JSS payouts will include support for qualifying shareholder-directors. The May 2020 payout will also include back-payment for companies with qualifying shareholder-directors whose wages were excluded from the first JSS payout in April 2020.

Foreign Worker Levy Waiver and Rebate extended by 1 month

The Government will extend the Foreign Worker Levy (FWL) waiver and FWL rebate by one month, to ease labour costs of firms that employ foreign workers in this period. 

As with the initial introduction of the waiver and rebate, this assistance will support firms with workers who are unable to work due to the circuit breaker and/or Stay Home Notice (SHN) measures. Firms should use the assistance for their workers’ wages and subsistence needs. MOM will provide further details. 

Posted on

Budget Summary 2020

A summary of Unity, Resilience and Solidarity Budget 2020.

Jobs Support Scheme ("JSS")

The temporary enhancement to  the JSS for the month of April 2020 will raise the wage support to 75% in that month. This will apply to the first S$4,600 of gross monthly wages paid to local workers (Singapore Citizens and Permanent Residents) in all sectors.

The first JSS payout (“Payout 1”) has been brought forward to  April 2020.Employers, who are on PayNow or have a Giro account with IRAS, will receive their payment in mid-April. Other employers will start to receive their cheques
the following week.

Self-Employed Person Income Relief Scheme ("SIRS")

As part of the Solidarity Budget, the Ministry of Manpower (MOM) will enhance the Self-Employed Person (SEP) Income Relief Scheme (SIRS) to  broaden support for SEPs affected by Covid-19 and tide them through this period of economic uncertainty. Eligible SEPs will receive three quarterly cash payouts of $3,000 each in May, July and October. 

1. WIth the two key enhancements, Singaporean SEPs who meet all of the following criteria will be eligible for SIRs:

    • Started work as an SEP on or before 25 March 2020
    • Currently earn a Net Trade Income (NTI) of not more than $100,000.;
    • If SEP also has employment (i.e. dual status worker), the income earned as an employee must be not more than $2,300/month;
    • Live in a property with an AV not more than $21,000; and
    • Do not own two or more properties.

2. For married Singaporean SEPs, the following additional criteria apply::

    • The individual and spouse together do not own two or more properties; and
    • The Assessable Income of his/her spouse does not exceed $70,000.

Care and Support Package

All Singaporeans aged 21 and above this year will receive a one-off Solidarity Payment of S$600 in cash. This will be done by bringing forward S$300 from the earlier announced enhanced Care and Support – Cash, and the Government topping up an additional S$300.

Most eligible citizens will receive their Solidarity Payment by 14 April 2020.

Eligible citizens will be notified of their payment via SMS, from 15 April 2020.

The other cash payouts that were earlier announced in the Resilience Budget under the enhanced Care and Support Package will be paid out in June 2020 (brought forward from August and September 2020).

These include:

  1. Remaining enhanced Care and Support – Cash of S$300 and S$600, for lower- and middle-income adult Singaporeans;
  2. Additional enhanced Care and Support – Cash of $300 for Singaporean parents with at least one Singaporean child aged 20 and below this year; and
  3. PAssion Card Top-up of S$100 for all Singaporeans aged 50 and above this year.
    This will be paid out in cash instead of through physical redemption, in consideration of safe distancing.

Cash Flow & Credit Support for Employers

To support enterprises, the Government will be helping employers with cash flow and credit:

  • Waiver of monthly Foreign Worker Levy (FWL) due in April 2020 to help firms with cash flow
  • FWL rebate of $750 in April 2020 from levies paid this year, for each Work Permit or S Pass holder
  • Laws to ensure property owners pass on Property Tax rebate to tenants.
  • 1-month rental waiver for office, industrial, and agriculture tenants of Government agencies
  • Government’s risk share raised from 80% to 90% for EFS-Trade Loan, EFS-SME Working Capital Loan, and Temporary Bridging Loan Programme (applies to loans initiated from 8 April 2020 till 31 March 2021)

Self-Employed Person Training Support Scheme

The training allowance is increased to S$10.00 an hour with effect from 1 May 2020.

Workfare Income Supplement Scheme ("WIS")

The Workfare Special Payment is increased to S$3,000, which will be paid over two equal payments of S$1,500 each, in July and October 2020.

COVID-19 Support Grant

The scheme eligibility criteria are as follows:

  • Singapore Citizens or Permanent Residents, aged 16 years and above,
  • who are presently unemployed due to retrenchment or contract termination as a result of the economic impact of the COVID-19 situation, and meet all of the following:
  • Had a monthly household income of not more than $10,000, or per capita household income not more than $3,100 per month prior to unemployment;
  • Lives in a property with an annual value of not more than $21,000; and
  • Not currently receiving ComCare Short-to-Medium Term Assistance(SMTA) or ComCare Interim Assistance.
  • The applicant must have been employed as a full-time, or part-time permanent, or contract staff prior to unemployment.

Successful applicants will receive a monthly cash grant of S$800, for three months.

The scheme will be open for application from May 2020 to September 2020.

Individuals who are eligible may submit their application at their nearest Social Service Office,

Deferment of Income Tax Payments for Companies

All companies with Corporate Income Tax (CIT) payments due in the months of April, May and June 2020 will be granted an automatic three-month deferment of these payments. 

The CIT payments deferred from April, May, and June 2020 will instead be collected in July, August, and September 2020 respectively.

No application is required.

Deferment of Personal Income Tax (PIT) Payments for Self-Employed Persons (SEPs)

All SEPs are to file their personal income tax (PIT) returns for YA 2020 by 18 April 2020. SEPs will be granted an automatic three-month deferment of their PIT payments due in the months of May, June and July 2020. The PIT payments deferred from May, June, and July 2020 will instead be collected in August, September, and October 2020 respectively.

Rental Waivers for Tenants in Government-Owned / Managed Non-Residential Facilities

Stallholders at hawker centres and markets managed by the National Environment Agency (NEA) will be given three months’ worth of rental waiver, with a minimum waiver of $200.

Commercial tenants in other government-owned or managed facilities will be provided with two months’ worth of rental waivers. 

Other Non-Residential Tenants. Government agencies such as JTC, SLA, HDB, URA, BCA, NParks, and PA will provide half a month’s worth of rental waiver to eligible tenants of other non-residential premises who do not pay Property Tax. Eligible tenants/lessees may include those in premises used for
industrial or agricultural purpose, or as an office, a business or science park, or a petrol station.

Enhanced Property Tax Rebate for Non-Residential Properties

For the tourism sector:

  • Property Tax Rebate of 100% for the year 2020, for the accommodation and function room components of licensed hotels and serviced apartments, and prescribed Meetings, Incentives, Conventions, and Exhibitions (MICE) venues.
  • International cruise and regional ferry terminals will receive a 100% Property Tax Rebate, and
  • the Integrated Resorts will receive a 60% Property Tax Rebate.

For the aviation sector:

  • 100% Property Tax Rebate for Changi Airport

For other non-residential properties:

  • 30% Property Tax Rebate

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) provides supports projects under 3 categories:

Core Capabilities

Projects under Core Capabilities help businesses prepare for growth and transformation by strengthening their business foundations.

Productivity

Projects under Innovation and Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency.

Market Access

Projects under Market Access support Singapore companies that are willing and ready to venture overseas.

From 1 April 2020 to 31 December 2020, the support level will be raised from up to 70% to up to 80%. For enterprises that are most severely impacted by COVID19, the maximum support level will be further raised to 90% on a case-by-case basis.

Productivity Solutions Grant (PSG)

From 1 April 2020 to 31 December 2020, the maximum support level will be raised from 70% to 80%.

SMEs Go Digital

The SMEs Go Digital programme aims to help SMEs use digital technologies and build stronger digital capabilities to seize growth opportunities in the digital economy. 

From 1 April 2020 to 31 December 2020, the scope of pre-approved digital solutions will be expanded to cover:

  1. Online collaboration tools;
  2. Virtual meeting and telephony tools;
  3. Queue management systems; and
  4. Temperature screening solutions.

The list of digital solutions fro PSG can be found on the Tech Depot

(www.smeportal.sg/content/tech-depot/en/home.html).

SMEs that are looking for visitor registration and contact tracing tools can access free trials provided by the tech industry 

(https://www.imda.gov.sg/bizgodigital).

Stabilisation and Support Package (SSP) - Course fee subsidy

Under the Stabilisation and Support Package (SSP), SSG is providing 90% course fee subsidies and absentee payroll (AP) rates for employers in sectors directly affected by the COVID-19 outbreak (i.e. air transport, tourism, retail, and food services), when they sponsor their workers for eligible courses. 

These enhancements will last for three months.

SG Together Enhancing Enterprise Resilience (STEER)

STEER supports funds set up by the Trade Associations and Chambers (TACs) or industry groupings, with the aim of helping businesses tide over the challenges arising from COVID-19, and to push on with transformation efforts in preparation for economic recovery. 

From 1 April 2020, Enterprise Singapore will match S$1 for every S$2 raised by such industry-led funds, up to S$1 million per fund.

E-invoicing Registration Grant

Businesses registered on the nationwide e-invoicing network on or before 31 December 2020 will receive a one-time grant of S$200. Businesses can register through more than 50 Peppol-ready accounting and ERP solutions. Once registered on the nationwide e-invoicing network, businesses will be able to send and receive e-invoices through the network.

Businesses incorporated on or before 25 March 2020 and registered on the network on or before 31 December 2020 will automatically receive their grant via PayNow Corporate.

There is no need to apply for the grant.

Advanced Digital Solutions

IMDA and Enterprise Singapore will provide up to 80% funding support for enterprises to adopt advanced digital solutions from 1 May 2020 to 31 December 2020.

Examples include:

  1. Advanced security and facilities management systems for buildings – cluster guarding, digital concierges, sensors and analytics for energy management and predictive maintenance, smart toilet systems, and mobile robots for security and/or cleaning. These solutions will help enterprises balance the need to minimise physical contact among staff, with the increased demand for security, cleaning and maintenance. It will also help to integrate security,
    cleaning and maintenance for more seamless facilities management.
  2. Integrated Business-to-Business (B2B) systems to facilitate end-to-end
    transactions between buyers and sellers.     These would help enterprises transit from  manual/paper transactions to electronic transactions by covering interlinked transactions such as e-procurement, e-invoicing, e-payments, and inventory management.

Enterprise Financing Scheme – SME Working Capital Loan

Maximum loan quantum: S$1,000,000

Maximum repayment
period: 5 years

Government’s risk-share: 80%.

Interest rate: Subject to assessment by Participating Financial Institutions (PFIs)

Principal Payment Deferment: SMEs may request for deferment of principal repayment for 1 year, subject to assessment by PFIs

Enterprise Financing Scheme – Trade Loan

The Enterprise Financing Scheme – Trade Loan supports Singapore-based enterprises’ trade financing needs, which include the financing of short-term import, export, and guarantee needs.

Maximum loan quantum: $10,000,000 per borrower group,

Maximum repayment
period: 1 year

Government’s risk-share: 80%.

Interest rate: Subject to assessment by Participating Financial Institutions (PFIs)

Loan Insurance Scheme (LIS)

The Loan Insurance Scheme helps SMEs secure short-term trade loans by having commercial insurers co-share loan default with Participating Financial Institutions. A portion of the insurance premium paid by SMEs to insurers is supported by the Government.

Maximum loan quantum insured: Subject to assessment by Commercial Insurers and Participating Financial Institutions

Maximum insured period: 1 year

Government’s subsidy on
insurance premium: 80%

Temporary Bridging Loan Programme (TBLP)

The Loan Insurance Scheme helps SMEs secure short-term trade loans by having commercial insurers co-share loan default with Participating Financial Institutions. A portion of the insurance premium paid by SMEs to insurers is supported by the Government.

Sector Coverage: All sectors

Maximum loan quantum: S$5,000,000 per borrower group

Maximum repayment
period: 5 years

Government’s risk-share: 80%

Interest rate: Capped at 5% per annum

Principal Payment Deferment: Enterprises may request for deferment of principal repayment for 1 year, subject to assessment by PFIs

Government fees and charges

All government fees and charges are freeze. i.e. No incremental of fees and charges.

All agencies will continue to collect fees and charges.

Temporary Relief Fund

Some families may require help urgently may apply for Temporary Relief Fund in the month of April, to provide them with immediate financial assistance.

This will be available at Social Service Offices and Community Centres.

SGUnited Traineeships programme

Workforce Singapore (WSG) will co-share manpower costs with enterprises that offer up to 8,000 traineeships targeted at local first-time jobseekers this year.

Firms that offer traineeships targeted at local first-time job seekers this year can receive funding from government agency Workforce Singapore (WSG) under this SGUnited Traineeships programme.

These will include science and technology stints in research and development labs, deep-tech start-ups, accelerators and incubators, said DPM Heng.

Participants will receive an allowance co-funded by the Government and firm they are attached to.

SGUnited Jobs Initiative

10,000 jobs will start with the public sector recruiting for long-term roles in essential services such as social services, early childhood education and infocomm technology.

Temporary jobs to handle the increase in Covid-19-related operations will also be available in roles such as health declaration assistants and temporary management support officers.

Private sector job opportunities will also be identified together with the Singapore Business Federation and other trade associations and chambers. 

There will be a series of SGUnited Jobs Virtual Career Fair (VCFs) upcoming up. More details of subsequent runs of the SGUnited Jobs VCF will be made available at a later date.

https://vcf.mycareersfuture.sg/vcf

Posted on

Solidarity Budget 2020

Jobs Support Scheme ("JSS")

Current Treatment

Employers will receive a cash grant on the gross monthly wages of each local employee (applicable to Singapore Citizens and Permanent Residents only) of :

  • 50% for food and service industry, 
  • 75% for the aviation and tourism sectors, and 
  • 25% for rest of the industry for the months of October 2019 to July 2020,

subject to a monthly wage cap of S$4,600 per employee.   

Employers do not need to apply for the JSS. The grant will be computed based on CPF contribution data.   

Employers can expect to receive the JSS payment from the Inland Revenue Authority of Singapore (IRAS) by May 2020.

Wages paid to business owners will not be eligible for the grant. 

New Treatment

The temporary enhancement to  the JSS for the month of April 2020 will raise the wage support to 75% in that month. This will apply to the first S$4,600 of gross monthly wages paid to local workers (Singapore Citizens and Permanent Residents) in all sectors.

The first JSS payout (“Payout 1”) has been brought forward to  April 2020.

For April 2020 payment, the government will give an Cash Grant of up to 75% of Oct 2019 wages. Subsequently, the Cash Grant in July 2020 will be adjusted downwards by 50% of Oct 2019 wages.

Care and Support Package

Current Treatment

All Singaporeans aged 21 years and above in 2020 will receive a one-off Care and Support – Cash payout of S$900, S$600 or S$300, depending on their income.

Those who own more than one property will receive S$300, regardless of their income.

Parents, with at least one Singaporean child aged 20 and below in 2020, will each receive an additional S$300 in cash.

New Treatment

All Singaporeans aged 21 and above this year will receive a one-off Solidarity Payment of S$600 in cash. This will be done by bringing forward S$300 from the earlier announced enhanced Care and Support – Cash, with the Government topping up an additional S$300.

Most eligible citizens will receive their Solidarity Payment by 14 April 2020.

Eligible citizens will be notified of their payment via SMS, from 15 April 2020.

The other cash payouts that were earlier announced in the Resilience Budget under the enhanced Care and Support Package will be paid out in June 2020 (brought forward from August and September 2020).

These include:

  1. Remaining enhanced Care and Support – Cash of S$300 and S$600, for lower- and middle-income adult Singaporeans;
  2. Additional enhanced Care and Support – Cash of $300 for Singaporean parents with at least one Singaporean child aged 20 and below this year; and
  3. PAssion Card Top-up of S$100 for all Singaporeans aged 50 and above this year.
    This will be paid out in cash instead of through physical redemption, in consideration of safe distancing.

Self-Employed Person Income Relief Scheme ("SIRS")

Current Treatment

Eligible self-employed persons will receive S$1,000 a month for nine months.

New Treatment

More SEPs will qualify for SIRS

  • Automatic inclusion for SEPs who also earn a small income from employment work
  • Enhanced Annual Value of property criterion of $21,000, up from $13,000 previously

Eligible SEPs will receive three quarterly cash payouts of $3,000 each in May, July, and October 2020. Other criteria remain unchanged.

Cash Flow & Credit Support for Employers

Current Treatment

Not applicable.

New Treatment

To support enterprises, the Government will be helping employers with cash flow and credit:

  • Waiver of monthly Foreign Worker Levy (FWL) due in April 2020 to help firms with cash flow
  • FWL rebate of $750 in April 2020 from levies paid this year, for each Work Permit or S Pass holder
  • Laws to ensure property owners pass on Property Tax rebate to tenants.
  • 1-month rental waiver for office, industrial, and agriculture tenants of Government agencies
  • Government’s risk share raised from 80% to 90% for EFS-Trade Loan, EFS-SME Working Capital Loan, and Temporary Bridging Loan Programme (applies to loans initiated from 8 April 2020 till 31 March 2021)
Posted on

Resilience Budget 2020

Jobs Support Scheme ("JSS")

Current Treatment

Employers will receive an 8% cash grant on the gross monthly wages of each local employee (applicable to Singapore Citizens and Permanent Residents only) for the months of October 2019 to December 2019, subject to a monthly wage cap of $3,600 per employee.   

Employers do not need to apply for the JSS. The grant will be computed based on CPF contribution data.   

Employers can expect to receive the JSS payment from the Inland Revenue Authority of Singapore (IRAS) by 31 July 2020.

Wages paid to business owners will not be eligible for the grant. 

New Treatment

The cash grant will be increased to 50% for food and service industry, 75% for the aviation and tourism sectors, and 25% for rest of the industry.

The monthly qualifying wage ceiling is increased from S$3,600 to S$4,600.

The Jobs Support Scheme is extended for another two quarters, till the end of 2020.

Employers will receive a total of three tranches of payouts, in May, July, and October this year.

The gated attraction must have more than 30% visitorship from tourists, and be classified under one of the following SSIC codes:

  •  SSIC 91021: Museums;
  •  SSIC 91022: Art galleries (excluding retail);
  •  SSIC 91029: Preservation of historical sites, buildings, artefacts and paintings, cultural villages and other related activities n.e.c.;
  • SSIC 91030: Botanical and zoological gardens and nature reserve activities;
  •  SSIC 93201: Amusement theme parks;
  •  SSIC 93209: Other amusement and  recreation activities n.e.c. (including recreation parks/beaches and recreational fishing).
The food shops and food stalls must be classified under one of the following SSIC Codes:
 
  •  SSIC 56: Food and Beverage Service Activities;
  •  SSIC 68104: Letting and operating of self-owned or leased food courts, coffee shops and eating houses (with mainly rental income).
Licensees registered as individuals will also be included if they make mandatory CPF contributions for their employees.

Self-Employed Person Income Relief Scheme ("SIRS")

Current Treatment

Not applicable.

New Treatment

Eligible self-employed persons will receive S$1,000 a month for nine months.

*Will be updated when MOM release details.

Self-Employed Person Training Support Scheme

Current Treatment

Announced on 3 March 2020, it gives all freelancers a training allowance of S$7.50 an hour when they attend courses under the SkillsFuture Series, as well as selected sector-specific training programmes.

New Treatment

The training allowance is increased to S$10.00 an hour with effect from 1 May 2020.

Workfare Income Supplement Scheme ("WIS")

Current Treatment

You will qualify for WIS if you:

  • are a Singapore Citizen;
  • are 35 years old or above on 31 December of the work year (all persons with disabilities would qualify for WIS); and
  • earn a gross monthly income of not more than S$2,300 for the month worked.

You will receive additional 20% of total annual WIS payments received for work done in 2019, with a minimum payment of $100. The highest WSP payout would have been S$720.

New Treatment

The Workfare Special Payment is increased to S$3,000, which will be paid over two equal payments of S$1,500 each, in July and October 2020.

COVID-19 Support Grant

Current Treatment

Not applicable.

New Treatment

The scheme eligibility criteria are as follows:

  • Singapore Citizens or Permanent Residents, aged 16 years and above,
  • who are presently unemployed due to retrenchment or contract termination as a result of the economic impact of the COVID-19 situation, and meet all of the following:
  • Had a monthly household income of not more than $10,000, or per capita household income not more than $3,100 per month prior to unemployment;
  • Lives in a property with an annual value of not more than $21,000; and
  • Not currently receiving ComCare Short-to-Medium Term Assistance(SMTA) or ComCare Interim Assistance.
  • The applicant must have been employed as a full-time, or part-time permanent, or contract staff prior to unemployment.

Successful applicants will receive a monthly cash grant of S$800, for three months.

The scheme will be open for application from May 2020 to September 2020.

Individuals who are eligible may submit their application at their nearest Social Service Office,

Care and Support Package

Current Treatment

All Singaporeans aged 21 years and above in 2020 will receive a one-off Care and Support – Cash payout of S$300, S$200 or S$100, depending on their income.

Those who own more than one property will receive S$100, regardless of their income.

Parents, with one or more Singaporean children aged 20 years and below in 2020, will each receive an additional $100 in cash.

New Treatment

The one-off Care and Support – Cash payout that was announced at Budget 2020 will be tripled for all Singaporeans aged 21 and above in 2020.

Each eligible citizen will receive S$900, S$600, or S$300, depending on their income.

Those who own more than one property will receive S$300, regardless of their income.

Parents, with at least one Singaporean child aged 20 and below in 2020, will each receive an additional S$300 in cash.

Deferment of Income Tax Payments for Companies

Current Treatment

Tax payable on first ECI e-Filed within

  • 1 months from year end: 12 months
  • 2 months from year end: 10 months
  • 3 months from year end:  8 months
  • After 3 months from year end: No installments allowed

New Treatment

All companies with CIT payments due in the months of April, May, and June 2020 will be granted an automatic three-month deferment of these payments. 

The CIT payments deferred from April, May, and June 2020 will instead be collected in July, August, and September 2020 respectively.

No application is required.

Deferment of Personal Income Tax (PIT) Payments for Self-Employed Persons (SEPs)

Current Treatment

Not applicable.

New Treatment

All SEPs are to file their personal income tax (PIT) returns for YA2020 by 18 April 2020. SEPs will be granted an automatic three-month deferment of their PIT payments due in the months of May, June, and July 2020. The PIT payments deferred from May, June, and July 2020 will instead be collected in August, September, and October 2020 respectively.

Rental Waivers for Tenants in Government-Owned / Managed Non-Residential Facilities

Current Treatment

Stallholders at hawker centres and markets managed by the National Environment Agency (NEA) will be given one month’s worth of rental waiver, with a minimum waiver of $200.

Commercial tenants in other government-owned or managed facilities will be provided with half a month’s worth of rental waiver. 

These include facilities owned or managed by agencies such as the Housing Board, People’s Association, National Parks Board, JTC, Urban Redevelopment Authority, Singapore Tourism Board and Sentosa Development Corporation.

New Treatment

Stallholders at hawker centres and markets managed by the National Environment Agency (NEA) will be given three months’ worth of rental waiver, with a minimum waiver of $200.

Commercial tenants in other government-owned or managed facilities will be provided with two months’ worth of rental waivers. 

Other Non-Residential Tenants. Government agencies such as JTC, SLA, HDB, URA, BCA, NParks, and PA will provide half a month’s worth of rental waiver to eligible tenants of other non-residential premises who do not pay Property Tax. Eligible tenants/lessees may include those in premises used for
industrial or agricultural purpose, or as an office, a business or science park, or a petrol station.

Enhanced Property Tax Rebate for Non-Residential Properties

Current Treatment

For the tourism sector:

  • Property Tax Rebate of 30% for the year 2020, for the accommodation and function room components of licensed hotels and serviced apartments, and prescribed Meetings, Incentives, Conventions, and Exhibitions (MICE) venues.
  • International cruise and regional ferry terminals will receive a 15% Property Tax Rebate, and
  • the Integrated Resorts will receive a 10% Property Tax Rebate.

For the aviation sector:

  • 15% Property Tax Rebate for Changi Airport

 

New Treatment

For the tourism sector:

  • Property Tax Rebate of 100% for the year 2020, for the accommodation and function room components of licensed hotels and serviced apartments, and prescribed Meetings, Incentives, Conventions, and Exhibitions (MICE) venues.
  • International cruise and regional ferry terminals will receive a 100% Property Tax Rebate, and
  • the Integrated Resorts will receive a 60% Property Tax Rebate.

For the aviation sector:

  • 100% Property Tax Rebate for Changi Airport

For other non-residential properties:

  • 30% Property Tax Rebate

Enterprise Development Grant (EDG)

The Enterprise Development Grant (EDG) provides supports projects under 3 categories:

Core Capabilities

Projects under Core Capabilities help businesses prepare for growth and transformation by strengthening their business foundations.

Productivity

Projects under Innovation and Productivity support companies that explore new areas of growth, or look for ways to enhance efficiency.

Market Access

Projects under Market Access support Singapore companies that are willing and ready to venture overseas.

Current Treatment

Currently, the maximum support level is 70%, until 31 March 2023.

New Treatment

From 1 April 2020 to 31 December 2020, the support level will be raised from up to 70% to up to 80%. For enterprises that are most severely impacted by COVID19, the maximum support level will be further raised to 90% on a case-by-case basis.

Productivity Solutions Grant (PSG)

The PSG provides support to enterprises in their transformation journey through funding support for the adoption of off-the-shelf productivity solutions and equipment that have been pre-approved by the Government.

Current Treatment

Currently, the maximum support level is 70%, until 31 March 2023.

New Treatment

From 1 April 2020 to 31 December 2020, the maximum support level will be raised from 70% to 80%.

SMEs Go Digital

The SMEs Go Digital programme aims to help SMEs use digital technologies and build stronger digital capabilities to seize growth opportunities in the digital economy. 

Current Treatment

Not applicable.

New Treatment

From 1 April 2020 to 31 December 2020, the scope of pre-approved digital solutions will be expanded to cover:

  1. Online collaboration tools;
  2. Virtual meeting and telephony tools;
  3. Queue management systems; and
  4. Temperature screening solutions.

The list of digital solutions fro PSG can be found on the Tech Depot

(www.smeportal.sg/content/tech-depot/en/home.html).

SMEs that are looking for visitor registration and contact tracing tools can access free trials provided by the tech industry 

(https://www.imda.gov.sg/bizgodigital).

Stabilisation and Support Package (SSP) - Course fee subsidy

Current Treatment

SkillsFuture Singapore (SSG) provides course fee subsidies (70% to 90%) and absentee payroll for a wide range of approved courses to support employers in sending their employees for training.

New Treatment

Under the Stabilisation and Support Package (SSP), SSG is providing 90% course fee subsidies and absentee payroll (AP) rates for employers in sectors directly affected by the COVID-19 outbreak (i.e. air transport, tourism, retail, and food services), when they sponsor their workers for eligible courses. 

These enhancements will last for three months.

SG Together Enhancing Enterprise Resilience (STEER)

STEER supports funds set up by the Trade Associations and Chambers (TACs) or industry groupings, with the aim of helping businesses tide over the challenges arising from COVID-19, and to push on with transformation efforts in preparation for economic recovery. 

Current Treatmement

Under the programme, Enterprise Singapore matches S$1 for every S$4 raised by such industry-led funds, up to S$1 million per fund.

New Treatment

From 1 April 2020, Enterprise Singapore will match S$1 for every S$2 raised by such industry-led funds, up to S$1 million per fund.

E-invoicing Registration Grant

Current Treatment

Not applicable.

New Treatment

Businesses registered on the nationwide e-invoicing network on or before 31 December 2020 will receive a one-time grant of S$200. Businesses can register through more than 50 Peppol-ready accounting and ERP solutions. Once registered on the nationwide e-invoicing network, businesses will be able to send and receive e-invoices through the network.

Businesses incorporated on or before 25 March 2020 and registered on the network on or before 31 December 2020 will automatically receive their grant via PayNow Corporate.

There is no need to apply for the grant.

Advanced Digital Solutions

IMDA and Enterprise Singapore will provide up to 80% funding support for enterprises to adopt advanced digital solutions from 1 May 2020 to 31 December 2020.

Current Treatment

Not applicable.

New Treatment

Examples include:

  1. Advanced security and facilities management systems for buildings – cluster guarding, digital concierges, sensors and analytics for energy management and predictive maintenance, smart toilet systems, and mobile robots for security and/or cleaning. These solutions will help enterprises balance the need to minimise physical contact among staff, with the increased demand for security, cleaning and maintenance. It will also help to integrate security,
    cleaning and maintenance for more seamless facilities management.
  2. Integrated Business-to-Business (B2B) systems to facilitate end-to-end
    transactions between buyers and sellers.     These would help enterprises transit from  manual/paper transactions to electronic transactions by covering interlinked transactions such as e-procurement, e-invoicing, e-payments, and inventory management.

Enterprise Financing Scheme – SME Working Capital Loan

Current Treatment

Maximum loan quantum: S$600,000

Maximum repayment period: 5 years

Government’s risk-share: 80%.

Interest rate: Subject to assessment by Participating Financial Institutions (PFIs)

Principal Payment Deferment: Not Applicable

New Treatment

Maximum loan quantum: S$1,000,000

Maximum repayment
period: 5 years

Government’s risk-share: 80%.

Interest rate: Subject to assessment by Participating Financial Institutions (PFIs)

Principal Payment Deferment: SMEs may request for deferment of principal repayment for 1 year, subject to assessment by PFIs

Enterprise Financing Scheme – Trade Loan

The Enterprise Financing Scheme – Trade Loan supports Singapore-based enterprises’ trade financing needs, which include the financing of short-term import, export, and guarantee needs.

Current Treatment

Maximum loan quantum: S$5,000,000 per borrower group,

Maximum repayment
period: 1 year

Government’s risk-share: 70%.

Interest rate: Subject to assessment by Participating Financial Institutions (PFIs)

New Treatment

Maximum loan quantum: $10,000,000 per borrower group,

Maximum repayment
period: 1 year

Government’s risk-share: 80%.

Interest rate: Subject to assessment by Participating Financial Institutions (PFIs)

Loan Insurance Scheme (LIS)

The Loan Insurance Scheme helps SMEs secure short-term trade loans by having commercial insurers co-share loan default with Participating Financial Institutions. A portion of the insurance premium paid by SMEs to insurers is supported by the Government.

Current Treatment

Maximum loan quantum insured: Subject to assessment by Commercial Insurers and Participating Financial Institutions

Maximum insured period: 1 year

Government’s subsidy on
insurance premium: 70%

New Treatment

Maximum loan quantum insured: Subject to assessment by Commercial Insurers and Participating Financial Institutions

Maximum insured period: 1 year

Government’s subsidy on
insurance premium: 80%

Temporary Bridging Loan Programme (TBLP)

The Loan Insurance Scheme helps SMEs secure short-term trade loans by having commercial insurers co-share loan default with Participating Financial Institutions. A portion of the insurance premium paid by SMEs to insurers is supported by the Government.

Current Treatment

Sector Coverage: Tourism enterprises

Maximum loan quantum: S$1,000,000 previously

Maximum repayment
period: 5 years

Government’s risk-share: 80%

Interest rate: Capped at 5% per annum

Principal Payment Deferment: Not applicable

New Treatment

Sector Coverage: All sectors

Maximum loan quantum: S$5,000,000 per borrower group

Maximum repayment
period: 5 years

Government’s risk-share: 80%

Interest rate: Capped at 5% per annum

Principal Payment Deferment: Enterprises may request for deferment of principal repayment for 1 year, subject to assessment by PFIs

Government fees and charges

Current Treatment

Not applicable.

New Treatment

All government fees and charges are freeze. i.e. No incremental of fees and charges.

All agencies will continue to collect fees and charges.

Temporary Relief Fund

Current Treatment

Not applicable.

New Treatment

Some families may require help urgently may apply for Temporary Relief Fund in the month of April, to provide them with immediate financial assistance.

This will be available at Social Service Offices and Community Centres.

SGUnited Traineeships programme

Current Treatment

Not applicable.

New Treatment

Workforce Singapore (WSG) will co-share manpower costs with enterprises that offer traineeships targeted at local first-time jobseekers this year.

*Will be updated when MOM release details.

Posted on

Singapore Budget 2018 affecting GST

GST on imported Services

With effect from 1 Jan 2020, GST will be levied on imported services, via the following:

(a) Reverse charge regime for Business-to-Business (“B2B”) supplies of imported services; and

(b) Overseas vendor registration regime for Business-to-Consumer (“B2C”) supplies of imported digital services.

Reverse Charge Regime

Changes in GST Act due to Budget 2018 introduces the concept of Reversal Charge Regime and Reversal Charge (RC) Business. 

RC Business is a person who is subject to reverse charge.

If you are a GST-registered person who procures services from overseas suppliers, you are an RC Business when: 

(a) You are not entitled to full input tax credit; or 

(b) You belong to a GST group that is not entitled to full input tax credit.

Full input tax credit test

You would not be entitled to full input tax credit, if you fall under either of the following circumstances:

(a) You carry out non-business activities (i.e. provide free or subsidised services) ; or

(b) You fail the De Minimis Rule under regulation 28 of the GST (General) Regulations at the end of any prescribed accounting period, except if:

(1) You make only exempt supplies listed in regulation 33 of the GST (General) Regulations (“regulation 33 exempt supplies”) and the nature of your business is not one of those listed in regulation 34 of the GST (General) Regulations (“regulation 34 business”); or

(2) Any provision in the GST legislation grants you the right to claim your input tax in full.

The De Minimis Rule is satisfied if the total value of all exempt supplies made does not exceed:

(a) an average of S$40,000 a month; and
(b) 5% of the total value of all taxable and exempt supplies made in that period.

If you are a non-GST registered person who procures services from overseas suppliers, you would be liable for GST registration by virtue of the reverse charge rules if you satisfy the following conditions:

(a) Your imported services which are within the scope of reverse charge exceed S$1 million in a 12-month period (under either the retrospective or prospective basis); and

(b) You would not be entitled to full input tax credit if you were GST registered.

If a non-GST registered person becomes registered or liable for registration by virtue of the reverse charge rules, he must comply with the responsibilities and obligations of a GST-registered person.

Imported services

RC Businesses must account for GST on all imported services other than:  

(a) services that fall within the description of exempt supplies under the Fourth Schedule to the GST Act; 

(b) services that qualify for zero-rating under section 21(3) of the GST Act had the services been made to them by a taxable person belonging in Singapore; 

(c) services that are directly attributable to taxable supplies (this exclusion is only applicable to RC Businesses that are not prescribed a fixed input tax recovery rate or on special input tax recovery formula); and 

(d) the salaries, wages and interest cost components, including their proportionate mark-up in accordance with transfer pricing policy, of cost allocations in inter-branch and intra-GST group transactions

Overseas vendor registration regime for Business-to-Consumer (“B2C”) supplies of imported digital services

If you belong outside Singapore, you are required to register for GST in Singapore if you:

(a) have an annual global turnover exceeding $1 million; and

(b) make B2C supplies of digital services to customers in Singapore exceeding $100,000.

Once registered for GST, you are required to charge and account for GST on B2C supplies of digital services made to customers in Singapore.

If you are an electronic marketplace operator

Under certain conditions, whether you are a local or an overseas operator of an electronic marketplace, you may be regarded as the supplier of the digital services made by the overseas suppliers through your marketplace.

In such cases, you are required to include the value of these services to determine your GST registration liability. If you are liable for GST registration or are already GST-registered, you are required to charge and account for GST on B2C supplies of digital services made through your marketplace to customers in Singapore on behalf of the overseas suppliers, in addition to digital services made by you directly to customers in Singapore.

To ease extra-territorial compliance burden, if you are an overseas operator, you will be registered under a simplified regime, with reduced registration and reporting requirements.

Update:

As of 16 February 2021, Budget 2021: 

GST to be extended to low-value and non-digital imports from 2023. The extension of the Goods and Services Tax to low-value imported goods and non-digital services follows from an earlier move to impose the same tax on imported digital services.

Posted on

Singapore Budget 2018 affecting companies tax

Corporate Income Tax (“CIT”) Rebate

Current treatment

For YA2018, CIT rebate is 20% of tax payable, capped at $10,000. 

New treatment

For YA2018, the CIT rebate will be enhanced to 40% of tax payable, with enhanced cap at $15,000. 

For YA2019, CIT rebate at a rate of 20% of tax payable, capped at $10,000.

Tax Deduction For Qualifying Expenditure On Qualifying Research And Development (“R&D”) Projects Performed In Singapore

Current treatment

Businesses that have incurred qualifying expenditure on qualifying R&D projects performed in Singapore can claim the following: 

a) 150% tax deduction for staff costs and consumables incurred, and 

b) 100% tax deduction for other qualifying expenditure. 

New treatment

Businesses that have incurred qualifying expenditure on qualifying R&D projects performed in Singapore can claim the following: 

a) 250% tax deduction for staff costs and consumables incurred, and 

b) 100% tax deduction for other qualifying expenditure. 

Period: YA2019 to YA2025.

Tax Deduction For Intellectual Property (IP) Registration Cost

Current treatment

100% tax deduction on such costs. 

Period: Until YA2020. 

New treatment

Increase in tax deduction from 100% to 200% for the first $100,000 of qualifying IP registration costs incurred for each YA. This change will take effect from YA2019 to YA2025.

Period: From YA2019 to YA2025

Tax deduction for costs on IP in-licensing

Current treatment

100% tax deduction on such costs. 

Period: Until YA2020. 

New treatment

Increase in tax deduction from 100% to 200% for the first $100,000 of qualifying IP registration costs incurred for each YA. This change will take effect from YA2019 to YA2025.

Period: From YA2019 to YA2025

Double Tax Deduction for Internationalisation (“DTDi”) scheme

Current treatment

200% tax deduction , on qualifying market expansion and investment development expenses, subject to approval from IE Singapore or STB. 

No prior approval is needed from IE Singapore or STB for tax deduction on the first $100,000 of qualifying expenses incurred on the following activities for each YA: 

a) Overseas business development trips/missions;

b) Overseas investment study trips/missions; 

c) Participation in overseas trade fairs; and 

d) Participation in approved local trade fairs.

New treatment

200% tax deduction , on qualifying market expansion and investment development expenses, subject to approval from IE Singapore or STB. 

No prior approval is needed from IE Singapore or STB for tax deduction on the first $150,000 of qualifying expenses incurred on the following activities for each YA: 

a) Overseas business development trips/missions;

b) Overseas investment study trips/missions; 

c) Participation in overseas trade fairs; and 

d) Participation in approved local trade fairs. 

This change will apply to qualifying expenses incurred on or after YA2019. 

IE and STB will release further details of the change by April 2018.

Start-Up Tax Exemption ("SUTE") scheme

Current treatment

A new company can, subject to conditions, qualify for, in each of the first three YAs: 

a) 100% exemption on the first $100,000 of normal chargeable income; and 

b) 50% exemption on the next $200,000 of normal chargeable income.

New treatment

A new company can, subject to conditions, qualify for, in each of the first three YAs: 

a) 75% exemption on the first $100,000 of normal chargeable income; and 

b) 50% exemption on the next $100,000 of normal chargeable income.

This change will take effect on or after YA2020 for all qualifying companies under the scheme. 

For example, if a qualifying company’s first YA is 2019, the current SUTE parameters will apply in YA2019 while the new parameters will apply in YAs 2020 and 2021.

Partial Tax Exemption (“PTE”) scheme

Current treatment

All companies (excluding those that qualify for the SUTE scheme) and bodies of persons, can qualify for, in each YA: 

a) 75% exemption on the first $10,000 of normal chargeable income; and

b) 50% exemption on the next $290,000 of normal chargeable income.

New treatment

All companies (excluding those that qualify for the SUTE scheme) and bodies of persons, can qualify for, in each YA: 

a) 75% exemption on the first $10,000 of normal chargeable income; and

b) 50% exemption on the next $190,000 of normal chargeable income.

All other conditions of the scheme remain unchanged. 

This change will take effect on or after YA2020 for all companies (excluding those that qualify for the SUTE scheme) and bodies of persons. 

Tax Deduction for Qualifying Donations

Current treatment

250% tax deduction for qualifying donations made to Institutions of a Public Character (“IPCs”) and other qualifying recipients 

Period: 1 January 2016 to 31 December 2018. 

New treatment

250% tax deduction for qualifying donations made to Institutions of a Public Character (“IPCs”) and other qualifying recipients 

Period: 1 January 2016 to 31 December 2021. 

Business and IPC Partnership Scheme (“BIPS”)

Current treatment

A qualifying person can, subject to conditions, enjoy a total of 250% tax deduction on qualifying expenditure such as wages incurred by him in respect of 

a) The provision of services by his qualifying employee to an IPC during that period; or 

b) The secondment of his qualifying employee to an IPC during that period.

Period: 1 July 2016 to 31 December 2018 

New treatment

A qualifying person can, subject to conditions, enjoy a total of 250% tax deduction on qualifying expenditure such as wages incurred by him in respect of 

a) The provision of services by his qualifying employee to an IPC during that period; or 

b) The secondment of his qualifying employee to an IPC during that period.

Period: 1 July 2016 to 31 December 2021

GST on imported services

Current treatment

GST is not applicable on imported services provided by an overseas supplier which does not have an establishment in Singapore.

New treatment

B2B imported services will be taxed via a reverse charge mechanism.

Only businesses that:

(i) make exempt supplies, or

(ii) do not make any taxable supplies need to apply reverse charge.

The reverse charge mechanism requires the local business customer to account for GST to IRAS on the services it imports. The local business customer can in turn claim the GST accounted for as its input tax, subject to the GST input tax recovery rules.

The taxation of B2C imported services will take effect through an Overseas Vendor Registration (OVR) mode.

This requires overseas suppliers and electronic marketplace operators which make significant supplies of digital services to local consumers to register with IRAS for GST.

Posted on

Singapore corporate tax exemptions caa 18 Feb 2018

Partial tax exemption for companies (from YA 2020)

Chargeable income % exempted from Tax Amount exempted from Tax
First $10,000 @75% =$7,500
Next $190,000 @50% =$95,000
Total $200,000 =$102,500

Tax exemption scheme for new start-up companies (where any of the first 3 YAs falls in or after YA 2020)

Chargeable income % exempted from Tax Amount exempted from Tax
First $100,000 @75% =$75,000
Next $100,000 @50% =$50,000
Total $200,000 =$125,000

Partial tax exemption for companies (YA 2010 to YA 2019)

Chargeable income % exempted from Tax Amount exempted from Tax
First $10,000 @75% =$7,500
Next $290,000 @50% =$145,000
Total $300,000 =$152,500

Tax exemption scheme for new start-up companies (where any of the first 3 YAs falls in YA 2010 to YA 2019)

Chargeable income % exempted from Tax Amount exempted from Tax
First $100,000 @100% =$100,000
Next $200,000 @50% =$100,000
Total $300,000 =$200,000
YA 2019 Companies will be granted a 20% Corporate Income Tax Rebate capped at $10,000. YA 2018 Companies will be granted a 40% Corporate Income Tax Rebate capped at $15,000