Singapore Budget 2020 Assistance for SMEs Amidst the COVID-19 Outbreak

The COVID-19 Pandemic has heavily influenced the income streams of companies in Singapore. Those affected more because of the outbreak are mostly small-medium enterprises (SMEs) with limited funds and strict budgetary management requirements. 

The government has introduced various schemes and incentives to help companies cope with the effects of Coronavirus. We will look at some government-funded programs that help firms in lessening their burdens:

Finances and Loans

Grants such as Digital Resilience Bonus, Enterprise Development Grant (EDG), Productivity Solutions Grant (PSG), SG Together Enhancing Enterprise Resilience (STEER) Programme, Enterprise Financing Scheme – SME Working Capital Loan (EFS WCL), etc. are all parts of the Singapore budget 2020 highlights. Get financial relief with the Salary Support Scheme. This scheme helps local businesses to retain and expand their workforce at a lower cost. Read more about the Salary Support Grants in Singapore at CZ Consultancy. 

Tax Rebates

The Corporate Tax Rebate will be 25% for the year 2020, capped at S$15,000. However, this doesn’t apply to a non-resident company that has to pay a final withholding tax.

There will be a waiver of up to 100% taxes for commercial properties. Companies such as stores, restaurants, hotels, etc. will get 100% returns. Depending on the nature of the business, other firms will get either 60% or 30% off.

Tenants Support

The government has also decided to pay rents to help SME Tenants in Singapore. Authorities will provide funds to landlords, and the landlord will pass it on to the company operating in their premises.

The period is two months for private properties, and four months for government-owned estates. Furthermore, the landlord will need to waive an additional two months rent if the company on the premises hasn’t made much profits.

NO Increase in Government Fees

There won’t be any increase in the government fees from April 2020 to 31 March 2021. This will benefit both companies and citizens.

The government has decided to not increase the Passport Renewal Fees, School Fees, Flat Application Charges, Business License and Permit Fees, Inspection Fees, Work Pass Application fees, Company Registration Charge, etc.

In addition to the above schemes, there are specialized programs for FinTechs, managing cash flow, debt, and insurance, and assistance with legal contracts.