SUPPLEMENTARY BUDGET 2020
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SUPPLEMENTARY BUDGET 2020
On 26 March 2020, a “Resilience Budget”, supplemental to Budget 2020 was announced by the
Minister of Finance, Mr Heng Swee Kiat to provide additional relief measures as the country grapples
with an unprecedented crisis fuelled by the COVID-19 pandemic.
To meet these challenges, a landmark S$48 billion worth of measures was rolled out to support
businesses and households in additions to the $6.4 billion committed earlier in Budget 2020. The total
of $55 billion which equates to 11% of the country’s GDP is targeted at:
Helping businesses to overcome the immediate challenges.
Save jobs, supporting workers and protecting livelihoods.
Strengthen economic and social resilience.
At Acutus, we are pleased to present you with these exclusive highlights to assist you in understanding
the various initiatives that were unveiled.
Embracing Growth ImperativeSUPPORTING SECTOR DIRECTLY AFFECTED BY COVID-19
A. The Aviation Sector:
75% wage subsidy for the first $4,600 of gross monthly wages per local employee.
S$350 million Enhanced Aviation Support Package to fund measures such as rebates
on landing and parking charges, rental relief for airlines, ground handlers and cargo
agents in order to retain a minimum level of connectivity to the world.
B. The Tourism Sector:
75% wage subsidy for the first $4,600 of gross monthly wages per local employee.
S$90 million set aside to aid the rebound of the tourism industry at the appropriate
time.
C. Food Services Sector:
50% wage subsidy for the first $4,600 of gross monthly wages per local employee,
applicable to licensed food stalls (including hawker stalls) and shops.
D. Land Transport Sector:
Special Relief Fund (SRF) payments to taxi main hirers and eligible Private Hire Car
(PHC) drivers of $300 per vehicle per month from March till September 2020.
Point-to-Point (P2P) operator licence fee waivers will be extended for another 6
months.
One-time waiver of $100 PHC vehicle outward conversion fee from May to September
2020.
One-year road tax rebate for all private buses.
Nine-month waiver for Class 2 Bus Service Licence fees from April to December
2020.
E. Maritime Sector:
50% port dues concession for passenger vessels from March to December 2020.
Additional 35% rebate on counter rental and overnight berthing for regional ferry
operators.
100% waiver of public licence fees for passenger terminal operators for a year.
Embracing Growth ImperativeSUPPORTING BUSINESSES
A. Deferment of income tax payments – Companies / Individuals:
Automatic 3 month deferment of corporate / individual income tax payment due in
months April to June 2020 / May to July 2020.
B. 1 year freeze on all government fees and charges, from April 2020 to 31 March 2021.
C. Property tax rebates:
The property tax rebate previously announced in the Singapore Budget 2020 was
enhanced as follows:
Enhanced
Property Tax Payable for Rebate
Rate
Accommodation and function room components of hotels and
-
service apartments
Premises that are used or intended to be used for Meetings,
-
Incentive Travel, Conventions and Exhibitions (MICE)
- Changi Airport;
- Singapore Cruise Centre;
100%
- Marina Bay Cruise Centre Singapore; and
- Tanah Merah Ferry Terminal.
Premises that are used or intended to be used for specified
purposes including retail, food and beverage, sports and
-
recreation, medical clinic, hospital, nursing home, purpose-built
workers’ dormitory, tourist attraction
- Marina Bay Sands; and
60%
- Resorts World Sentosa.
- Other non-residential properties 30%
Note: For further details, refer to https://www.iras.gov.sg/irashome/Property/Property-owners/Working-
out-your-taxes/Property-Tax-Reliefs/
D. Enhanced rental waivers for tenants in Government-owned/managed non-residential facilities:
Rental waiver of up to 3 months for stallholders in hawker centres and markets, with a
minimum waiver of $200 per month.
Rental waiver of up to 2 months for commercial and other non-residential tenants in
Government properties.
Rental waiver of 0.5 months for all other non-residential tenants of Government
agencies.
Embracing Growth ImperativeCREDIT SUPPORT
A. Enterprise Financing Scheme:
The following enterprise financing facilities administered by Enterprise Singapore to
assist businesses are:
1. SME Working Capital Loan – to finance daily operational cashflow needs
Enhancement
Increased cap to S$1 million
Risk-share increased to 80%
SMEs may request for a deferment of principal repayment for one
year, subject to assessment by participating financial institutions.
2. SME Fixed Assets Loan – To finance the investment of domestic and overseas
fixed assets
3. Venture Debt Loan – To finance the growth of innovative enterprises using
Venture Debt and Warrants.
4. Trade Loan – To finance trade needs.
Enhancement
Increased cap to S$10 million
Risk-share increased to 80%
Valid for 1 year from April 2020
5. Project Loan – To finance the fulfilment of secured overseas projects.
6. Mergers & Acquisitions Loan – To finance the acquisition of target enterprises
with the intent of internationalisation.
Interest rates on loans will depend on the risk assessment of the Participating Financial
Institutions (PFI).
To qualify for the EFS, an enterprise needs to fulfil the following criteria:
Be a business entity that is registered and physically present in Singapore
Have at least 30% local equity held directly or indirectly by Singaporean(s)
and/or Singapore PR(s), determined by the ultimate individual ownership.
Have a Maximum Borrower Group revenue cap of S$500 million for all
companies.
Embracing Growth ImperativeB. Temporary Bridging Loan Programme (TBLP)
The TBLP, which was introduced in Budget 2020, is offered by Enterprise Singapore
and provides access to working capital for business needs.
The Government will provide 80% risk-share on these loans.
The TBPL started in March 2020 and is available until 31 March 2021.
To qualify for the TBLP, an enterprise needs to fulfil all of the following criteria:
Be a business entity that is registered and physically present in Singapore
Have at least 30% local equity held directly or indirectly by Singaporean(s)
and/or Singapore PR(s), determined by the ultimate individual ownership.
With these enhancements
Eligible enterprises may borrow up to S$5 million under the TBLP with the
interest capped at 5% p.a.
The programme has expanded from the tourism sector to all sectors from April
2020 onwards.
Eligible enterprises under the TBLP may also apply up to 1 year deferral of
principal repayment, subject to assessment by Participating Financial
Institutions.
To qualify for the TBLP, an enterprise needs to fulfil the following criteria:
Be a business entity that is registered and physically present in Singapore
Have at least 30% local equity held directly or indirectly by Singaporean(s)
and/or Singapore PR(s), determined by the ultimate individual ownership.
C. Loan Insurance Scheme (LIS)
The LIS, administered by Enterprise Singapore, allows enterprises to secure short-term
trade financing loans from Participating Financial Institutions (PFI).
Enterprises can apply for the LIS to secure short-term trade financing for the purpose
of:
Inventory/stock financing facility
Structured pre-delivery working capital
Factoring/bill or invoice or accounts receivable discounting with recourse
Overseas Working Capital Loan
Banker’s Guarantee
Embracing Growth ImperativeC. Loan Insurance Scheme (LIS) (continued)
Companies applying for the LIS need to fulfil the following criteria:
Be a business entity that is registered and physically present in Singapore, and
At least 30% local equity held directly or indirectly by Singaporean(s) and/or
Singapore PR(s), determined by the ultimate individual ownership, and
Group revenue of up to S$100 million or maximum employment of 200
employees.
With these enhancements:
The LIS insurance premium will be increased from 50% to 80%
The validity will be from April 2020 to March 2021
CAPABILITY GRANTS
A. Productivity Solutions Grant (PSG)
The PSG, administered by Enterprise Singapore, supports companies keen on adopting
IT solutions and equipment to enhance business processes.
These solutions have been pre-scoped by various government agencies such as
Enterprise Singapore, National Environmental Agency (NEA) and Singapore Tourism
Board (STB).
Companies applying for the PSG need to fulfil the following criteria:
Registered and operating in Singapore
Purchase/lease/subscription of the IT solutions or equipment must be used in
Singapore
Have a minimum of 30% local shareholding (for selected solutions only)
With these enhancements
The maximum support level will be raised from 70% to 80% from 1 April
2020 to 31 December 2020.
The expanded scope of solutions to help enterprises implement COVID-19
business continuity measures are
i. Online collaboration tools
ii. Virtual meeting and telephony tools
iii. Queue management systems
iv. Temperature screening solutions
The list of readily adoptable solutions can be found on Tech Depot.
Embracing Growth ImperativeB. Enterprise Development Grant (EDG)
The EDG, administered by Enterprise Singapore, supports projects that help
enterprises upgrade their business, innovate or venture overseas, under three pillars:
1. Core Capabilities
Projects under Core Capabilities help businesses prepare for growth and
transformation by strengthening their business foundations. These should go
beyond basic functions such as sales and accounting.
2. Innovation and Productivity
Projects under Innovation and Productivity support companies that explore
new areas of growth, or look for ways to enhance efficiency. These could
include reviewing and redesigning workflow and processes. Companies could
also tap into automation and technologies to make routine tasks more efficient.
3. Market Access
Projects under Market Access support Singapore companies that are willing
and ready to venture overseas. Enterprises may tap into the EDG to help
defray some of the costs of expanding into overseas markets.
The grant funds qualifying project costs, namely third party consultancy fees, software
and equipment, and internal manpower cost.
1. Companies applying for the EDG need to fulfil the following criteria:
Registered and operating in Singapore
Be in a financially viable position to start and complete the project
Have a minimum of 30% local shareholding (for selected solutions
only)
2. With these enhancement
The maximum support level will be raised to 80% from April 2020 to
December 2020.
Enterprises that are most severely impacted by COVID-19, the
maximum support level may be raised to 90% on a case-by-case basis.
Unionised enterprises and e2i partners under the Labour Movement
are eligible to receive an additional 10% funding support, subject to
NTUC e2i’s assessment.
Embracing Growth ImperativeC. SG Together Enhancing Enterprise Resilience (STEER) Programme
The programme, administered by Enterprise Singapore, will support 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 the economic recovery.
Supportable uses of the fund include grants for business sustenance, business growth,
and capability upgrading.
Valid from 3 March 2020 to 2 March 2021.
With these enhancements
Enterprise Singapore will match S$1 for every S$2 raised by such industry-led
initiatives, up to S$1 million per fund from 1 April 2020.
D. SME Go Digital Programme
The SMEs Go Digital programme, administered by IMDA, aims to help SMEs use
digital technologies and build stronger digital capabilities to seize growth opportunities
in the digital economy.
Under the SMEs Go Digital programme, SMEs receive funding support for the
adoption of pre-approved digital solutions through the PSG.
With these enhancements
The scope of pre-approved digital solutions under PSG will be expanded to
help enterprises implement safe distancing and business continuity measures
from April to December 2020.
Businesses can enjoy up to 80% co-funding support to adopt more advanced
solutions to deepen their capabilities.
Embracing Growth ImperativeSUPPORTING WORKERS
A. The Job Support Scheme will be enhanced to cover 9 months of wages, covering the months
shown in the table below:
This will be paid in 2 additional tranches in July 2020 and October 2020 as follows:
JSS will cover CPF JSS will JSS will be
wages paid in: contributions provide paid out by
for the relevant support of: end of:
months must be
made by:
Tranche 1 October - 14 February 2020 25% of the May 2020
(Enhanced) December 2019 first $4,600 of
Tranche 2 February - April 14 May 2020 gross monthly July 2020
(New) 2020 wages per
local
Tranche 3 May - July 2020 14 August 2020 employee October
(New) 2020
The Wage Credit Scheme payout date has been brought forward to June 2020.
SELF-EMPLOYED PERSONS (SEPs)
A. Eligible SEPs will receive S$1,000 a month for 9 months under the SEP Income Relief
Scheme
B. The SEP Training Support Scheme will be extended to December 2020 and the hourly training
allowance will be increased to S$10 from May 2020.
C. Eligible SEPs will receive cash payout of S$3,000 under the Workfare Special Payment.
If you wish to understand more on the above, please contact:
Tax Measure
Ms Ang Poh Geok - Email: pohgeok.ang@acutus-ca.com
Mr Yong Zhi Xiong - Email: zhixiong.yong@acutus-ca.com
Advisory
Mr Jack Lam - Email: jack.lam@acutus-ca.com
Mr Gerald Tan - Email: gerald.tan@acutus-ca.com
DISCLAIMER: This article is issued exclusively for the general information of clients and staff of Acutus. The material should not be relied
upon without appropriate professional advice. Acutus will not be liable for any loss or damage arising out of or in connection with the
material contained in this publication.
© March 2020. This article is contributed by Acutus Tax Services Pte. Ltd. All rights reserved.
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