1. S$1.3 billion Enterprise Assist Package deal to assist companies handle prices
Throughout his Price range 2024 speech in the present day (February 16), Deputy Prime Minister and Minister for Finance Lawrence Wong introduced an S$1.3 billion Enterprise Assist Package deal to assist companies in Singapore handle rising prices.
The Enterprise Assist Package deal contains a company earnings tax rebate, enhancements to the Enterprise Financing Scheme (EFS), and an extension of the SkillsFuture Enterprise Credit score. Right here’s a breakdown on the bundle:
(a) Company earnings tax rebate
Corporations will obtain a company earnings tax rebate of fifty per cent, capped at S$40,000, for 2024.
Companies that aren’t worthwhile, who’ve employed no less than one native worker in 2023, will obtain minimal money payouts of S$2,000.
(b) Enhancements to the EFS
The EFS will obtain three enhancements, together with a everlasting elevate of the utmost working capital mortgage quantum from S$300,000 to S$500,000 to assist small and medium-sized enterprises (SMEs) meet their elevated working capital and operational cashflow wants.
Other than this, the improved most commerce mortgage quantum of S$10 million shall be prolonged till Mar 31, 2025, to help companies’ internationalisation efforts amid world help chain disruptions.
The help for home building tasks below the EFS’ mission loans may also be prolonged till Mar 31, 2025, with a most mortgage quantum of S$15 million.
Moreover, the federal government has additionally prolonged help for inexperienced loans sunder the EFS to help native SMEs to undertake inexperienced options, in addition to enhancing the Power Effectivity Grant. The Power Environment friendly grant was first launched in 2022 for the Meals Companies, Meals Manufacturing and Retail Sectors, and shall be prolonged to incorporate extra industries such because the Manufacturing, Building, Maritime and Information Centres.
Corporations registered and working in Singapore with no less than 30 per cent native shareholding, no less than one native worker and a bunch annual gross sales turnover of no more than $500 million shall be eligible for help below the scheme.
(c) SkillsFuture Enterprise Credit score extension
The federal government may also be extending the SkillsFuture Enterprise Credit score by a yr to Jun 30, 2025.
Employers who’ve already obtained the credit score will be capable to apply it to supportable schemes past Jun 30, 2024, with claims to be submitted by Jun 30, 2025.
2. New SkillsFuture programme for mid-career employees
The federal government shall be introducing a brand new SkillsFuture Stage-Up Programme shall be launched for Singaporeans aged 40 and above to raised help these mid-career employees to retrain and achieve new abilities.
This features a S$4,000 top-up in SkillsFuture Credit score for chosen programs, subsidies for a second full-time diploma at chosen educational establishments, and a month-to-month coaching allowance – which shall be equal to 50 per cent of the employee’s common earnings within the final 12 months, capped at S$3,000 – for chosen full-time programs.
3. PACT scheme shall be enhanced to help SME and MNC collaboration
The Partnerships for Functionality Transformation (PACT) scheme may also be enhanced in additional areas, specializing in functionality coaching, internationalisation and company venturing.
The scheme was first launched in 2010 and helps collaboration between bigger corporations and SMEs in co-innovation and internationalisation tasks. Via the improved scheme, the federal government goals to assist extra Singaporean companies plug world provide chains, compete in markets overseas and develop to turn into trade leaders.
4. Decrease wage employees to get bigger payouts
As a part of the federal government’s enhancements to the Workfare Earnings Scheme, salaries for lower-wage employees shall be adjusted.
Decrease-wage senior employees will qualify for a most annual payout of S$4,900, up from S$4,200 in the present day. The increment will rely on their age and wage, and older employees and individuals with disabilities will obtain the best funds.
The federal government may also elevate the qualifying earnings cap from S$2,500 to S$3,000 for the Workfare Earnings Scheme to make sure that lower-wage employees will proceed to obtain advantages as their wages develop, which can profit round half 1,000,000 Singaporeans ranging from Jan 1, 2025.
5. Native Qualifying Wage for full-time employees shall be raised to S$1,600
The Native Qualifying Wage (LQS) for full-time employees shall be raised from S$1,400 to S$1,600 from July 1 this yr, and the minimal hourly fee may also be elevated from S$9 to S$10.50 per hour.
The LQS is the minimal wage that companies hiring overseas employees are required to pay their native employees, and the variety of native employees paid the LQS is then used to compute the agency’s overseas employee quota entitlement.
6. Co-funding ranges for the Progressive Wage Credit score Scheme shall be elevated
Employers who elevate the wages of lower-wage employees may also get extra help from the federal government by means of the Progressive Wage Credit score Scheme, the place the federal government co-funds the wage will increase of lower-wage employees with employers.
The federal government shall be rising the co-funding ranges shall be raised for 2024 to a most of fifty per cent, up from a most of 30 per cent.
7. CPF contributions to boost by 1.5 proportion factors from 2025
The Enhanced Retirement Sum shall be raised and the CPF contribution charges for these aged 55-65 will improve by 1.5 proportion factors from 2025 onwards.
Moreover, the Particular Accounts in CPF shall be closed for these aged 55 and above ranging from 2025 and past. All the funds accrued shall be transferred to the Retirement Sum and account holders can nonetheless benefit from the long-term rates of interest.
The CPF Transition Offset may also be supplied to employers for an additional yr, to cowl half of the rise in employer contributions for 2025 and cushion the impression on enterprise prices.
8. Momentary monetary help scheme for retrenched employees
Amid a spate of layoffs previously few years, the federal government is presently figuring out the parameters of a brief monetary help scheme to assist retrenched employees whereas they bear coaching or search for one other job.
The scheme shall be a part of a revamp and growth of the nation’s SkillsFuture programme, and extra particulars shall be revealed later this yr.
9. S$2 billion to be invested into monetary sector, S$3 billion into R&D, and S$1 billion into AI developments
The federal government will put an extra S$2 billion into the Nationwide Productiveness Fund and Monetary Sector Growth Fund.
With the extra funds, Singapore will introduce a brand new refundable tax credit score scheme that goals to help high-value and substantive financial actions to stay aggressive and entice investments.
Investments eligible for the Refundable Funding Credit score (RIC) scheme embrace these associated to the inexperienced transition, innovation and R&D.
The RIC shall be awarded by the Singapore Financial Growth Board and Enterprise Singapore, and is predicated on the qualifying expenditures incurred by a agency.
Corporations can rise up to 50 per cent of help on every qualifying expenditure class, together with manpower prices, skilled charges, supplies and consumables, freight and logistics prices, and capital expenditure.
Moreover, Singapore may also make investments S$3 billion in the direction of analysis and growth (R&D) and one other S$1 billion over 5 years to additional enhance the city-state’s synthetic intelligence (AI) capabilities.
10. Two elements below Pillar 2 of BEPS shall be launched
Underneath the Base Erosion and Revenue Shifting (BEPS) 2.0 initiative, which was launched final yr, Singapore will introduce the Earnings Inclusion Rule (IIR), the place multinational enterprises (MNEs) parented in Singapore are subjected to a minimal efficient tax fee of 15 per cent on the income made by their abroad subsidiaries.
On prime of this, the federal government may also implement the Home High-up Tax (DTT), which applies to the Singapore income of MNEs.
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