On March 26 2020, Deputy Minister Heng Swee Keat announced in Parliament details of the Resilience Budget.
In total, the government is committing close to S$55 billion, or 11% of our GDP, to help Singaporeans in what is predicted to be a long drawn battle with COVID-19.
How does the budget other measures affect business owners and property investors?
25% CORPORATE TAX REBATE
Business owners will be eligible for a 25% corporate tax rebate at a maximum cap of $15,000. Application is not required and IRAS will compute and process the rebate automatically.
ENHANCED JOB SUPPORT SCHEME
Employers now receive 25% cash grant on wages of each local employee which Central Provident Fund (CPF) contributions were made. The monthly salary cap will be up to $4600. For F&B, employers will receive 50% of the monthly wages per local employee. Application is not required. IRAS will notify eligible employers.
ENHANCED PROPERTY TAX REBATE FOR NON-RESIDENTIAL PROPERTIES
There will be a 30% rebate for offices (including those located within an office building), industrial and commercial buildings, shophouses or science park until 31 Dec 2020. There will be no GIRO deduction for a period ranging from May to August 2020.
Update: As of 3rd April 2020, 4pm, PM Lee stated that they will legislate to require landlords to pass on property tax rebates fully to their tenants.
FOR RESIDENTIAL HOME OWNERS
Individuals can ask their banks and insurers to defer repayment of property loans. They can defer either principal payment or both principal and interest payments on their residential property loans until 31st Dec 2020.
Applicants need not show that they had been hit by COVID-19 to obtain approval. Lenders will approve the request for deferment if applicant is not in arrears for more than 90 days as at 6 April 2020.
