Financial Support Schemes to Help Businesses Cope with COVID-19

The COVID-19 pandemic has affected jobs and livelihoods. To provide relief and assistance to Singaporeans, the Government has introduced various support schemes to get through this difficult time.

In addition, to help you run your business in the midst of a pandemic situation, you can use ERP Software to streamline your business processes & drive your company’s growth significantly.

Financial Support Schemes

Jobs Support Scheme (JSS)

• Firstly, to help employers retain workers, the Government will co-finance the first $4,600 of the gross monthly salary paid to each local employee for 10 months, with payments in April, May, July and October 2020
• Companies are not permitted to continue operations to get 75% wage support until August 2020 or when they are allowed to reopen, whichever is earlier
• For other qualification months, the Government will pay:

• 75% for the aviation, tourism, man-made environment, aerospace and MICE organizers sectors
• 50% for the food service, retail, arts & entertainment, marine & offshore and land transportation sectors
• 25% for all other companies

Enhance Wage Credit Scheme (WCS)

An additional $500 million for employees’ increases, in addition to $600 million disbursed in March 2020.

Deferment of Income Tax Payments

Automatically defer income tax payment for 3 months, for companies and self-employed persons (SEPs).

• Companies: the tax due from April to June 2020 is payable only from July to September 2020

Property Tax Rebate for 2020

• 100% rebate for eligible commercial property
• 60% rebate for Integrated Resorts
• 30% rebate for other non-residential properties
• Laws to ensure property owners pass on Property Tax deductions to tenants

Rental Waivers

• 5-month rental waiver for kiosk owners in hawker centers and markets, with a minimum waiver of $200 per month
• 4-month rental waiver  for commercial tenants in government-owned/managed residences
• 2-month rental waiver for non-resident tenants in government-owned/managed residences

Government Cash Grants for SME Tenants in Private Properties

Automatically disbursed to eligible property owners from the end of July 2020.

• Cash grant of ~ 0.8 month rent for eligible commercial property owners
• Cash grant of ~ 0.64 month rent for eligible non-residential property owners, e.g. industrial and office properties

Corporate Income Tax Rebate

Corporate Income Tax Rebate for YA2020.

• 25% of tax payable, a maximum of $ 15,000 per company

Foreign Worker Levy (FWL) Waiver

Extended by up to 2 months for businesses that are not permitted to continue operations after the circuit breaker.

• 100% waiver and $750 rebate in June 2020
• 50% waiver and $375 rebate in July 2020

Deferment of Higher CPF Contribution Rates

Increase in CPF contribution rates for senior workers who are suspended for 1 year, from 1 January 2021 to 1 January 2022.

Government Grants 

Enterprise Development Grant (EDG)

• The EDG is aimed for helping Singapore businesses grow and transform. This grant supports projects that help you increase business, innovate, or expand overseas
• The EDG funds qualifying project costs, such as third party consultancy fees, software and equipment, and internal labor costs
• Meanwhile, The maximum support level will be raised to 80% from 1 April 2020 to 31 December 2020
• For companies that are most severely affected by COVID-19, the maximum support level can be increased to 90% on a case-by-case basis

Note: As an ERP software consultant, we will be more than happy to help our users go through all the processes needed to apply for the Enterprise Development Grant.

Productivity Solutions Grant (PSG)

• The PSG supports businesses that want to adopt IT solutions and equipment to improve business processes
• The grant supports sector-specific solutions (e.g. retail, food, logistics, precision engineering, construction and landscaping industries) and adoption of solutions that cut across industries, such as in the areas of customer management, data analysis, financial management, and inventory tracking
• The maximum funding support level will be raised to 80% from 1 April 2020 to 31 December 2020

Market Readiness Assistance (MRA)

• Small and medium enterprises (SMEs) will receive an international boost with the MRA grant to help bring their businesses overseas
• Eligible SMEs will receive up to 70% of the eligible costs, limited to S$100,000 per company per new market from 1 April 2020 to 31 March 2023 which includes:

• Distant market promotion (maximum S$20,000)
• Overseas business development (maximum S$50,000)
• Overseas market settings (maximum S$30,000)
• One activity in one foreign market/application (e.g. market entry, or participation in a trade show)

Enterprise Leadership for Transformation (ELT)

• The ELT is a one-year program that supports business leaders from SMEs that promise to develop business growth capabilities, which will be launched in Q3 2020
• Eligible companies can qualify for up to 90% funding of the program costs

Skills Future Enterprise Credit (SFEC)

The SFEC encourages entrepreneurs to invest in the company transformation and the capabilities of their employees. As a result, eligible entrepreneurs will receive a one-time credit of S$ 10,000 to cover up to 90% of the expenses incurred for qualifying costs for supportable initiatives, exceeding and above the level of support of the existing schemes.

Conclusion

In conclusion, to create such a scheme, the Government needs accurate information and data regarding the situation. Therefore, the Government can use an ERP Software for Government Institution to automate their administration and operational processes, increases information transparency in real-time, and ensures data security. 

Experience the free demo right now, seize the opportunity today!

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