COVID-19: Support, Schemes and Guidelines for Small Businesses in Singapore

Posted by Team Finaxar on Apr 14, 2020 7:35:00 PM

Support, Schemes and Guidelines For Small Businesses In Singapore

With the outbreak of COVID-19, here is a comprehensive list of grants and support from the government, which your business can make use of:

 

1. Support for manpower costs

Job Support Scheme (JSS)

75% wage subsidy for the first $4,600 of April salary for all sectors (and 25% for subsequent months). Read more here. For the subsequent months, it will follow a structure as seen below:

Job Support Scheme (JSS)

 

Waiver and Rebate for foreign worker levy

There will be a waiver of foreign worker levy due in April 2020. There is no need to apply and the waiver will apply automatically.

If you are a business employer who has at least paid up to December 2019’s foreign workers’ levy in full (which amount was due in January 2020), you will be eligible for a flat rate of $750 for each S Pass or Work Permit holder in your employment as at 29 February 2020. Read more here. There is no need to apply and the rebate will be done automatically. Check your rebate via CPF.

 

2. Lease or Licence Agreement

Lease or Licence Agreement

Temporary Relief for Inability to Perform Contractual Obligations

COVID-19 has had an impact on contracts relating to commercial undertakings (e.g. construction projects), commercial and industrial tenancies and individual consumer transactions (e.g. bookings for events). Individuals or companies who are unable to meet their obligations may have to pay damages or forfeit deposits. Otherwise, stable businesses may be sued and face lengthy litigation or possible insolvency. To complement the financial measures announced in the Resilience Budget, the Bill provides temporary and targeted protection for businesses and individuals who are unable to fulfil certain contractual obligations because of COVID-19. Read more here.

 

Rental Waiver for Tenants 

To help alleviate costs for businesses located in Government-owned / managed nonresidential facilities, the following tenants will qualify for rental waivers: Stallholders at hawker centres, commercial tenants and non-residential tenants. Read more here.

 

3. Taxes and fees

Taxes and fees

 

Government fees freeze

The fee freeze announced as part of the Resilience Budget means that fees and charges for government-provided services will not be increased for one year, from 1 April 2020 to 31 March 2021. Fees and charges will continue to be collected during this period, but at the current rates. Read more here.

 

Extension of tax filing deadline

As part of its support for taxpayers in light of the latest measures to manage the COVID-19 situation, the Inland Revenue Authority of Singapore (IRAS) is providing an automatic extension of deadlines for tax filing for individuals and businesses. Read more here.

 

Corporate income tax rebate

There will be a rebate of 25% for the year 2020, u to $15,000 per company. The rebate will be done automatically and there is no need to apply. Read more here.

 

Deferment of tax

There will be an automatic deferment of income tax payments for 3 months, companies will pay income tax for the financial year 2019 profits from July 2020 instead of April 2020. Application is not needed as it will be done automatically.

 

Property tax rebate

As part of the Resilience Budget announced on 26 Mar 2020, qualifying non-residential properties (“qualifying properties”) will be granted property tax rebate for the period of 1 Jan 2020 to 31 Dec 2020. 

Under the Resilience Budget, owners of qualifying properties will be granted rebates of up to 100% on their property tax payable. Read more here.

 

4. Loans and Insurance

Loans and Insurance

Loans

TBLP, EFS-WCL and EFS-TL:

As announced in the Solidarity Budget on 6 Apr 2020, the Government will enhance the TBLP further with 90% risk share. The enhancement will apply to new applications initiated from 8 April 2020 until 31 March 2021. All businesses are eligible, subject to credit assessment by participating institutions. Read more here.

In addition, the Government will enhance the EFS-WCL further with 90% risk share. The enhancement will apply to new applications initiated from 8 April 2020 until 31 March 2021. Enterprises under this scheme may also apply for up to 1-year deferral of principal repayment to help them reduce their monthly cash outflow. Read more here.

Finally, the Enhanced EFS-TL aims to provide enterprises with better access to trade financing amidst the current environment of slower business activities and longer payment cycles. Read more here.

Contact your participating financial institution to apply.

 

Insurance

The Enhanced LIS helps SMEs secure short-term trade loans by having commercial insurers to co-share loan default with Participating Financial Institutions (PFIs). A portion of the insurance premium paid by SMEs to Insurers is currently supported by the Government. As announced in the Resilience Budget on 26 Mar 2020, the Government will increase insurance premium subsidy support for LIS from 50% to 80%. This enhancement is to help SMEs across all industries reduce trade financing costs, and will apply to applications initiated from 1 April 2020 until 31 March 2021. Read more here. Apply to your insurer.

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Finaxar supports SMEs with working capital loans that would meet their immediate business needs. Know more about our product line: Finaxar Credit LineReceivables Financing and Purchase Financing.

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