IMPORTANT - Note from Editor:
The following is a compilation of initiatives by the Singapore Government. All information below is directly retrieved from the Budget 2020 website, with certain sections summarised by the Reapra team for brevity. To view the complete description of each measure, please refer to their respective links.
To ensure relevance for our readers, we are only providing measures relating to support for businesses. For the full listing of measures, please head over to the Budget 2020 website.
Known as Singapore’s Resilience Budget, the Supplementary Budget 2020 includes revised Government revenue and expenditure plans for the current financial year. It complements the Unity Budget presented on 18 February, and addresses the rapidly evolving COVID-19 situation and the impact on Singapore’s economy and society.
Enhanced Support for Businesses & Self-Employed
Addressing immediate challenges, the Resilience Budget will tackle the 3 Cs on business owners minds – cash flow, cost, and credit, in addition to offering help to specific sectors affected by COVID-19.
• Cashflow Support
• Sector-specific Support
• SMEs & Individuals
• Retaining & Retraining Workers
- Corporate Income Tax Rebate (CIT)
To help companies with cash flow, a CIT Rebate of 25% of tax payable, capped at $15,000 per company, will be granted for Year of Assessment (YA) 2020.
- Enhancement of Tax Treatments Under Corporate Tax Systems
2 additional months of interest-free instalments when companies file for ECI within 3 months from their year-end. This will help elevate tax liabilities and cashflows for the companies. On top of which, the companies can also apply for deferment of tax payments by 3 months.
Additional information can also be found on the IRAS website.
- Enterprise Financing Scheme - SME Working Capital Loan and Trade Loan [Enhanced]
The Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL), which is available to SMEs across all industries, will be enhanced for one year to help SMEs with their working capital needs. The Government will raise the maximum loan quantum to $1 million, and enhance the Government’s risk-share to 80% (from the current 50% to 70%) for SMEs borrowing from Participating Financial Institutions under the scheme. This will help provide additional runway for the companies to tide over the period of downturn.
- Loan Insurance Scheme [Enhanced]
The Loan Insurance Scheme (LIS) helps SMEs secure short-term trade loans by having commercial insurers co-share loan default with Participating Financial Institutions.The Government will increase support for the LIS insurance premium from 50% to 80% for one year, to help SMEs across all industries manage their trade financing costs.
- Temporary Bridging Loan Programme for All Sectors [Enhanced]
The TBLP will be expanded to all sectors from 1 April 2020. The maximum loan quantum will also be increased to $5 million, with the interest rate capped at 5% p.a. The Government will provide 80% risk-share on these loans.
- Property Tax Rebate for Non-Residential Properties [Enhanced]
Non-residential properties will be granted a rebate for Property Tax (PT) payable for the period 1 January 2020 to 31 December 2020.
- Rental Waivers for Tenants in Government-owned / managed Non-Residential Facilities [Enhanced]
The government will enhance rental waivers to commercial tenants (2 months waiver) and other non-residential tenants (half month waiver)
SMEs & Individuals
- Personal Income tax submission extension
There are extended filing deadlines for personal income tax, GST returns, ECI for companies with year end Jan 2020 and Foreign employee tax clearances to help with the disruptions of companies operations.
- SGUnited Traineeships
Co-fund wage costs of companies offering traineeships to first-time jobseekers (up to 8,000 traineeships)
Retaining and Retraining Workers
- Enhanced Jobs Support Schemes (JSS)
The JSS will be rolled out for business in the aviation, tourism and food service sectors. For every local worker employed, a total of up to 75% wage offset for the first $4,600 of monthly wages will be provided.
- Enhanced Wage Credit Scheme (WCS)
The Government will increase the level of co-funding for 2019 and 2020 to 20% and 15% respectively. The monthly wage ceiling will be increased to S$5,000.
- Enhanced Training Support
• Higher course fees subsidies of 90%, and
• Up to S$10 hourly for absentee payroll till June 2020
Updated 9 April 2020