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5 Essential Things Businesses Need to Know From Singapore Budget 2020
Upon assimilating the details of Budget 2020, Corporate Services Singapore discusses its business-related highlights for companies in Singapore to take heed.
1) No Increase In GST By 2021
The first highlight of Budget 2020 is there will be no increase in GST 2021. The rise was previously planned to take place between 2021 and 2025. Nevertheless, the tax for broad-based consumption, which is imposed on almost every good and service in the country, will need to be raised by 2025.
2) Support To Defray Salary Costs
The second highlight of Budget 2020 is the support that companies in Singapore will receive to defray salary costs during this challenging period. The Wage Credit Scheme and new Jobs Support Scheme, which helps support enterprises and ensure that the employees stay employed, will obtain enhancement.
"Singapore government will offset up to eight percent of Singapore citizens and permanent resident workers' salary, capped at 43,600 for every worker each month, for three months," added Hans.
3) Support For Businesses' Cash Flow
Hans also mentioned the role of Budget 2020 in supporting the cash flow of businesses in Singapore. "The Stabilisation and Support Package comprises of economy-wide measures to aid companies with their cash flow during the tough economic time and ongoing virus outbreak," he stated.
For the tax year of assessment 2020, relevant Singapore authorities will grant every company a corporate income tax rebate at a rate of twenty-five percent of chargeable income, which is capped at $15,000. The said rebate will cost the government approximately $400 million and can benefit every tax-paying company.
4) Additional Support For Industries Most Affected By Coronavirus Outbreak
Another key highlight of Budget 2020 is the government's additional support for industries most affected by Coronavirus. "Five industries heavily affected by the coronavirus outbreak, namely, tourism, aviation, food, retail, and point-to-point transportation services, will get extra support as per the Adapt and Grow Initiative for the operating expenses and cash flow, including retaining and reskill employees," said Hans.
5) Support For The Growth And Transformation Of Singapore's Economy
Last but not least, Budget 2020 will provide support for the growth and transformation of Singapore's economy with over $8 billion allocations.
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