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IRAS – Extended Filing Deadline [Updated]

Due to the extended Circuit Breaker to 1 June 2020, IRAS is providing an automatic extension of deadlines for tax filing for individuals and businesses.

Tax TypeOriginal Filing DeadlineExtended Filing Deadline
[New]
Income Tax for Individuals (including sole
proprietors and partnerships)		18 Apr 202031 May 2020
Income Tax for Trusts, Clubs and
Associations		15 Apr 202030 Jun 2020
[Updated]
Estimated Chargeable Income (ECI) for
companies with Financial Year ending
Jan 2020		30 Apr 202030 Jun 2020
[Updated]
Estimated Chargeable Income (ECI) for
companies with Financial Year ending
Feb 2020		31 May 202030 Jun 2020
[Updated]
GST Returns for accounting period ending
Mar 2020		30 Apr 202011 May 2020
S45 Withholding Tax Forms due in Apr 202015 Apr 202015 May 2020
Tax Clearances for foreign employee in
Apr 2020		–30 Jun 2020
[Updated]
Tax Clearance for foreign employees
due in May 2020		–30 Jun 2020
[Updated]

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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. 

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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

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Extension of Deadline for Holding Annual General Meetings and Filing Annual Returns

In light of the COVID-19 situation, some companies may have difficulties holding their Annual General Meetings (AGMs) and filing their Annual Returns (ARs).

For listed and non-listed companies whose AGMs are due during the period 16 April 2020 to 31 July 2020

ACRA will grant a 60-day extension of time for all listed and non-listed companies whose AGMs are due during the period 16 April 2020 to 31 July 2020. 

Companies that had previously been granted extension of time to hold their AGMs within this period will also be given a further 60 days of extension from the last date of extension. 

The AR filing due dates for the period 1 May 2020 to 31 August 2020 for all listed and non-listed companies will also be extended for 60 days. There is no need for these companies to apply for the extension of time with ACRA.

For listed and non-listed companies whose AGMs are due during the period 1 to 15 April 2020

ACRA will also not impose any penalties on listed and non-listed companies whose AGMs are due during the period 1 April to 15 April 2020 if they hold the AGM within 60 days of the due date. Their AR filing due dates will also be extended for 60 days. There is no need for these companies to apply for the extension of time.

Temporary Measures for Conduct of Meetings

ACRA and MAS are working with other relevant government agencies to propose legislative amendments to provide legal certainty in relation to the conduct of meetings, for companies implementing safe distancing measures. The proposed provisions are scheduled to be tabled in Parliament on or about 7 April 2020. Details of the approved provisions will be updated on this page when available.  

In the interim, ACRA, MAS and SGX RegCo have issued a joint updated guidance to guide companies on the measures they could adopt in the holding of AGMs and general meetings amid the COVID-19 situation until the proposed legislative amendments have been passed in Parliament in April 2020. 

Please click on the following links for more information:

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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)
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IRAS Extends Tax Filing Deadlines

As part of its support for taxpayers in light of the latest measures to manage the COVID-19 situation, the Inland Revenue Authority of Singapore (IRAS) is providing an automatic extension of deadlines for tax filing for individuals and businesses:

Tax Type Original Filing Deadline Extended Filing Deadline
Income Tax for Individuals (including sole proprietors and partnerships)18 Apr 202031 May 2020
Income Tax for Trusts, Clubs and Associations15 Apr 202031 May 2020
Estimated Chargeable Income (ECI) for companies with Financial Year ending Jan 202030 Apr 202031 May 2020
GST Returns for accounting period ending Mar 202030 Apr 202011 May 2020
S45 Withholding Tax Forms due in Apr 202015 Apr 202015 May 2020
Tax Clearances for foreign employee in Apr 2020 -1 additional month
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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.

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Singapore Budget 2020 affecting companies

Jobs Support Scheme ("JSS")

Current Treatment

Not applicable

New 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. 

Enhancement to Wage Credit Scheme ("WCS")

Current Treatment

Under WCS, the Government will co-fund a part of wage increases given to Singaporean employees earning a gross monthly wage of up to $4,000.

  • 2013 to 2015: 40% cap at $4,000
  • 2016 to 2018: 20% cap at $4,000
  • 2019: 15% cap at $4,000
  • 2020: 10% cap at $4,000

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

Payouts will be given to employers by 31 Mar of the payout year.

New Treatment

The monthly wage ceiling will be raised from $4,000 to $5,000 for qualifying wage increases given in 2019 and 2020.

  • 2013 to 2015: 40% cap at $4,000
  • 2016 to 2018: 20% cap at $4,000
  • 2019: 20% cap at $5,000
  • 2020: 15% cap at $5,000

Government co-funding levels will also be raised for 2019 and 2020 qualifying wage increases by five percentage points, to 20% and 15% respectively. 

Corporate Income Tax ("CIT") Rebate 

Current treatment

YA2019: 20% of tax payable, capped at $10,000

New treatment

YA2020: 25% of tax payable, capped at $15,000

Automatic extension of interest-free instalments of 2 months for payment of CIT on Estimated Chargeable Income (“ECI”) filed within 3 months from the companies’ financial year-end (“FYE”)

Current Treatment

Tax payable on first ECI e-Filed within

  • 1 months from year end: 10 months
  • 2 months from year end: 8 months
  • 3 months from year end:  6 months
  • After 3 months from year end: No instalments allowed

New 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 instalments allowed

Increase the number of YAs for which the current year unabsorbed capital allowances (“CA”) and trade losses for a YA (collectively referred to as “qualifying deductions”) may be carried back 

Current Treatment

“Qualifying Deductions” (“QD”) can be carried back for one YA immediately preceding that YA in which the CAs are granted or the trade losses incurred capped at $100,000.

New Treatment

“Qualifying Deductions” (“QD”) for YA2020 can be carried back for three YA  (i.e YA2017) capped at $100,000.

Provide an option to accelerate the write-off of the cost of acquiring plant and machinery (“P&M”)

Current Treatment

A taxpayer who incurs capital expenditure on the acquisition of P&M in the basis period can claim Capital Allowances (CA) over

Section 19A

  • 100% Write-Off in One Year
  • Write-Off Over Three Years

Section 19

  • Write-Off Over the Prescribed Working Life of the Asset

New Treatment

A taxpayer who incurs capital expenditure on the acquisition of P&M in the basis period for YA2021 (i.e. financial year (“FY”) 2020) will have an option to accelerate the write-off of the cost of acquiring such P&M over 2 years.

The rates of accelerated CA allowed are as follows:

a) 75% of the cost incurred to be written off in the first year (i.e. YA2021); and,
b) 25% of the cost incurred to be written off in the second year (i.e. YA2022).

Provide an option to accelerate the deduction of expenses incurred on renovation and refurbishment (“R&R”)

Current Treatment

A taxpayer which incurs qualifying expenditure on R&R during the basis period for the purposes of its trade, profession or business can claim Section 14Q deduction  over three consecutive YAs starting from the year in which the R&R expenditure is incurred, i.e. 1/3 of the R&R expenditure can be claimed in each of the three YAs.

The amount of R&R costs that qualify for tax deduction as a business expense is capped at $300,000 for every relevant three-year period, starting from the year in which the R&R costs are incurred.

 

New Treatment

A taxpayer which incurs qualifying expenditure on R&R during the basis period for YA2021 (i.e. FY2020) for the purposes of its trade, profession or business will have an option to claim R&R deduction in 1 YA (i.e. accelerated R&R deduction).

The amount of R&R costs that qualify for tax deduction as a business expense is capped at $300,000 for every relevant three-year period, starting from the year in which the R&R costs are incurred.

Extend the Mergers & Acquisitions (“M&A”) scheme

Current Treatment

Under the M&A scheme, an M&A allowance will be granted to a company that acquires another company during the period 1 Apr 2010 to 31 Dec 2020 (both dates inclusive). The M&A allowance will be allowed on a straight line basis over five years and the allowance cannot be deferred. Companies must meet certain conditions to remain eligible for M&A allowance for each Year of Assessment (YA) during the five-year write-down period.

  • 1 Apr 2016 to 31 Dec 2020:  The M&A allowance is 25% of the value of acquisition, , subject to a maximum amount of $10 million for all qualifying share acquisitions in the basis period for each YA. Maximum M&A allowance for each YA will be reached with an acquisition of $20 million in that YA.
  • 1 Apr 2015 to 31 Mar 2016: The M&A allowance is 25% of the value of acquisition, , subject to a maximum amount of $5 million for all qualifying share acquisitions in the basis period for each YA. Maximum M&A allowance for each YA will be reached with an acquisition of $20 million in that YA.
  • 1 Apr 2010 to 31 Mar 2015: The M&A allowance is at 5% of the value of acquisition, subject to a maximum amount of $5 million for all qualifying share acquisitions in the basis period for each YA. Maximum M&A allowance for each YA will be reached with an acquisition of $100 million in that YA.

New Treatment

The M&A scheme will be extended to cover qualifying acquisitions made on or before 31 December 2025.

The scheme will remain unchanged for acquisitions made on or after 1 April 2020, except for the following:

  1. Stamp duty relief will lapse for instruments executed on or after 1 April 2020; and
  2. No waiver will be granted for the condition that the acquiring company must be held by an ultimate holding company that is incorporated in and is a tax resident of Singapore. This will apply for acquisitions made on or after 1 April 2020.
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Singapore corporate tax exemptions caa 18 Feb 2020

Partial tax exemption for companies (from YA 2020)

Chargeable income% exempted from TaxAmount 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 TaxAmount 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 TaxAmount 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 TaxAmount exempted from Tax
First $100,000@100%=$100,000
Next $200,000@50%=$100,000
Total $300,000 =$200,000

YA 2020
Companies will be granted a 25% Corporate Income Tax Rebate capped at $15,000.

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

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Government Grants – SkillsFuture Earn and Learn Programme

The SkillsFuture Earn and Learn Programme offers Employers a grant of up to S$15,000 per individual employed under the programe.

Background

The SkillsFuture Earn and Learn Programme is a work-learn programme that gives fresh graduates (within three years of graduation or Operationally Ready Date for National Servicemen) from polytechnics and the Institute of Technical Education (ITE) a head-start in careers related to their discipline of study. It provides them with more opportunities, after graduation, to build on the skills and knowledge they acquired in school, and better supports their transition into the workforce.

Participating employers can recruit local fresh talent, within three years of graduation or the Operationally Ready Date for National Servicemen and prepare them to take up suitable job roles. Participants in the programme can look forward to a structured career progression pathway within the organisation.

Benefits for the Employers

You will be able to groom and retain suitable talent with the relevant skills and aptitude to meet the needs of your company.

You will also receive a grant of up to $15,000 per individual placed in the SkillsFuture Earn and Learn Programme to defray the costs of developing and providing structured on-job-training and to encourage them to set out career progression pathways.

* Terms and Conditions apply

To sign up, please visit ELP portal.