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Singapore Budget 2020: A One-Page Executive Summary
The Lanturn Team
There has been a lot of buzz around Singapore Budget 2020, especially in a time where many businesses are reeling from the economic impacts of COVID-19. Here’s what’s on the table!
Singapore Budget 2020 – Short term relief
Corporate Income Tax Rebate of 25% of tax payable for YA2020.
Cap of $15,000 for each company applies.
Rental Waivers for Commercial Tenants in Government-owned / managed facilities
Eligible tenants/lessees may include providers of commercial accommodation, retail, F&B, recreation, entertainment, healthcare, and more.
No GST increase till beyond 2021. But will still be raised to 9% by 2025.
Jobs: Retention and Progression
Employers will receive an 8% cash grant on the gross monthly wages of each Singaporean and PR employee for the months of October to December 2019
A monthly wage cap of $3,600 per employee applies.
No action needed. The grant is computed based on CPF contribution data.
Employers can expect the JSS payment from IRAS by 31 July 2020.
Preparing for better days: Up-skilling and Refurbishments
One-off SkillsFuture top-up
Singaporeans aged ≥ 25 to get a top-up** of $500 from 1st Oct 2020.
Singaporeans aged 40-60 will receive an additional $500 top-up**
**Top-ups will expire in 5 years.
New SkillsFuture Enterprise Credit scheme to defray up to 90% of out-of-pocket costs of business transformation, job redesign, and skills training.
A cap of $10,000 per company applies.
More than 35,000 firms, mostly SMEs, are expected to benefit.
Enhanced Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL)
Maximum loan quantum increased from $300,000 to $600,000.
The government’s risk-share enhanced to up to 80%
Applicable for SMEs borrowing from Participating Financial Institutions.
Starts in March 2020, and is available for one year till March 2021.
Enhanced Corporate Tax Treatments
Companies paying their Corporate Income Tax via GIRO can automatically enjoy an additional two months of interest-free installments when they file their Estimated Chargeable Income (ECI) within 3 months from their Financial Year End. This applies to companies that:
File their ECI from 19 February 2020 to 31 December 2020;
Filed their ECI before 19 February 2020, and have ongoing installment payments to be made in March 2020.
Up to $100,000 of the unabsorbed capital allowances and trade losses for YA2020 to be carried back up to three immediate preceding YAs, instead of one preceding YA;
Option to accelerate the write-off of acquisition costs for plant and machinery in FY2020 (i.e. incurred for YA2021) over two years
Option to accelerate the deduction of costs incurred on renovation and refurbishment in FY2020 (i.e. incurred for YA2021) in one year.
On the whole, the measures are meant to encourage up-skilling and refurbishment in most industry sectors.
Sustainability & Climate Change – Singapore to phase out internal combustion engine vehicles by 2040
Added support for Deep-tech startups
Additional S$300 million under the Startup SG Equity co-investment scheme
Specifically: Pharmbio and Medtech, advanced manufacturing, agri-food tech
While the measures and packages presented are not as generous as businesses could’ve hoped, the government has certainly stepped up and the support will go a long way in helping businesses survive the harsh market conditions.
Jack Ma has given some
But if you’d like more candid recommendations from our accounting team, why not join us for a
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