On 18 February 2020, the Inland Revenue Authority of Singapore (IRAS) has published an overview of tax changes in the Budget Statement for the Financial Year 2020. Some of the main changes for businesses are summarized as follows:
- Employers will receive an 8% cash grant on the gross monthly wages of each local employee for the months of October 2019 to December 2019, subject to a monthly wage cap of $3,600 per employee.
- In Budget 2020, the government co-funding ratios for wage increases in 2019 and 2020 will be raised from the current 15% and 10%, to 20% and 15% respectively. The qualifying gross wage ceiling will also be raised to $5,000 for both years, up from the current $4,000.
- To help companies with cash flow, a CIT Rebate of 25% of tax payable, capped at $15,000, will be granted for Year of Assessment 2020.
- Companies paying their CIT by GIRO can automatically enjoy an additional 2 months of interest-free installments, when they file their ECI within 3 months from their FYE.
- Under the enhanced carry-back relief scheme for YA2020, qualifying deductions for year of assessment 2020 may be carried back up to 3 immediate preceding year of assessments, capped at $100,000 of qualifying deductions and subject to conditions.
- the Double Tax Deduction for Internationalization (DTDi) scheme will be extended till 31 December 2025.
