Businesses
- Jobs Credit
Employers will receive a 12% cash grant on the first $2,500 of each month’s wages for each employee on their CPF payroll.
The Jobs Credit is for one year, and employers will receive the Jobs Credit in four payments: March, June, September and December 2009. - SPUR
Course fee subsidies for PMET-level courses that are eligible for SPUR will be increased from 80% to 90%, the same subsidy level as rank-and-file level courses. This includes all Specialist and Advanced Diplomas offered by the polytechnics.
Selected tertiary courses at UniSIM and the three publicly funded universities will be included under SPUR - Workfare Income Supplement (WIS)
The Government will give low-income workers a temporary WIS Special Payment to supplement their pay and encourage them to stay employed. The WIS Special Payment will provide low-income workers with an additional 50% of the WIS payments that they will receive over the course of this year.
The Government will also relax the work eligibility criteria of the WIS Special Payment, in order to enable more low-wage workers, particularly those with less regular employment, to benefit. - Government Hiring
18,000 public sector jobs (including Government-supported jobs outside of the Government in areas such as childcare, tertiary education, and restructured hospitals) are expected to be available over the next two years. - Special Risk-Sharing Initiative
The New Bridging Loan Programme (BLP)
Loan Insurance Scheme - Plus (LIS+)
Trade Credit Insurance Programme (TCIP) - Enhancement to existing credit measures
For loans made under Local Enterprise Finance Scheme, the Government will increase its risk-share for loans made to local non-SMEs, from 50% to 80%. This will be similar to the Government risk-share for LEFS loans made to SMEs.
For loans made under the Micro Loan Programme, the Government will increase its risk-share, from 80% to 90%.
The Government will increase the maximum loan quantum for the Internationalisation Finance Scheme per borrower group, from $15 million to $50 million. - Other credit related measures
To encourage banks to continue making adequate loan impairment provisions and bolster their financial strength to underpin continued lending in the downturn, the Government will extend the tax deduction on loss provisions made pursuant to MAS Notice 612, as well as other equivalent MAS notices for finance companies and merchant banks, for a further three Years of Assessment. - Property Tax Rebate
The Government will provide a 40% property tax rebate for industrial and commercial properties for 2009. The Government strongly urges landlords to pass on the benefits of this rebate to their tenants. - Rental Rebates
JTC, HDB, and SLA will provide a 15% rental rebate to their tenants and land lessees, exceeding the savings due to the property tax rebate. JTC, HDB, and SLA will be releasing the details of these concessions separately on 22 January 2009. The rental rebate will also be extended to stallholders who are paying market rents in markets and food centres managed by NEA. - Enhancements to Loss Carry-back scheme
The loss carry-back relief system will be enhanced for Years of Assessment 2009 and 2010. The cap on losses that can be claimed against past taxable income is increased to $200,000 from $100,000. Businesses will also be allowed to claim losses against the taxable income of their preceding three Years of Assessment, instead of just the immediate preceding year as under the current scheme. - Tax exemption on Remittance of Foreign-Sourced Income
The Government will temporarily expand the scope of the Foreign-Sourced Income Exemption scheme to cover all foreign-sourced income, and not just foreign-sourced dividends, branch profits and service income. The Government will also temporarily lift the conditions that are currently required for foreign-sourced income to be exempted from tax when remitted to Singapore. With these temporary enhancements, businesses will be exempt from tax on the foreign-sourced income that they remit between 22 Jan 2009 to 21 January 2010 (both dates inclusive), provided that the remitted income is earned on or before 21 January 2009. - Transport Rebates and Concessions
A 30% road tax rebate for goods vehicles, buses and taxis for one year. This rebate will take effect on 1 July 2009.
A 20% concession in port dues to be granted to all harbour craft (except pleasure craft for personal use) which will help local companies engaged in commercial activities within Singapore’s port waters. This concession will be for one year and will take effect on 1 April 2009.
An increase in aircraft landing fee rebate from 15% to 25% for 2009.
Extension of the special tax exemption for Compressed Natural Gas (CNG) vehicles until December 2011. From 2012 onwards, the CNG special tax will be removed and replaced with a CNG duty of $0.20 per kilogramme of CNG. - Government Fee Freeze
The Government will extend the freeze on Government Fees and Charges to December 2009. This will include fees charged on all Government provided services, charges in public carparks, and all license fees. (Regulatory charges, such as those in the transport sector and the development charges applied in the property market, will not be frozen. The Government fee freeze is not applied to fees charged by non-government entities, such as the universities, restructured hospitals and town councils.) - Measures for Property Developers
Defer property tax for commercial developers for land approved for development for up to two years. Land approved for development refers to land with a valid Provisional or Written Permission granted by the URA. The property tax deferral will take effect from 22 January 2009 or the date of Provisional or Written Permission, whichever is later. The deferral will lapse on 21 January 2011, or at Temporary Occupation Permit (TOP), or date of transfer of the land, whichever is the earliest.
Allow a one-year extension of the project completion period for private residential projects. This would give flexibility to developers to phase out their projects in the current uncertain market conditions.
Allow re-assignment of Government Land Sales (GLS) sites and private land owned by foreign housing developers for applications made by 22 January 2010.
Extend the period for developers to dispose of all residential units from two years to four years. Developers may also rent out unsold residential units for a maximum of four years to mitigate holding costs. - Deferment of Increase in Assessment Rate for Hotels
The Government will defer the increase in assessment rate for hotel rooms, which was due to increase to 25% on 1 January 2009, by one year. - Corporate Income Tax (CIT) Rate Cut
The Government will reduce the CIT rate from 18% to 17%. This reduction will take effect from the Year of Assessment 2010. - Accelerated Capital Allowance (CA)
The Government will allow plant and machinery acquired during the financial years ended 2009 and 2010 to qualify for an accelerated write-down. This temporarily accelerated write-down will allow businesses to write down the costs of these newly acquired plants and machinery within two years with 75% of the write-down taking place in the first year of CA claim alone. - Writing Down of Renovation and Refurbishment Expenses
The Government will introduce a tax framework for qualifying corporate amalgamations. This framework will alleviate the tax cost associated with corporate amalgamations. A public consultation will be held in February 2009 to seek views on this new tax framework for qualifying corporate amalgamations. - Enhancements to and Streamlining of Fund Management Incentives
Currently, there are conditions such as the fund cannot be 100% beneficially owned by resident investors and there are limits placed on the holdings by resident corporate investors in these funds. The Government will now remove all these limits on qualifying funds so that they can accept investments freely from resident corporates, in addition to resident individuals.
This enhancement of the fund management incentives will also apply to qualifying funds that are constituted in the form of Limited Partnerships. A qualifying fund is one which, amongst other conditions, has at least $50 million under management at the point of application for the tax incentive. Fund managers may apply for the scheme with effect from 1 April 2009. Both the existing and enhanced fund management incentives will also be subject to review after five years. MAS will release the details by April 2009. - Recovery of GST for Qualifying Local Funds
The Government will allow qualifying funds that are managed by a prescribed fund manager in Singapore to recover a substantial portion of the GST incurred on prescribed expenses. This change will be in place from 22 January 2009 to 31 March 2014 (both dates inclusive). MAS will release the details by April 2009. - Expansion of Scope of Tax Exemption under Fund Management and Trust Incentives
The enhancements will take effect from 22 January 2009. MAS will release the details by April 2009. - Enhancements to Headquarter Services (FSI-HQ) Scheme
The Government will enhance the FSI-HQ scheme by granting withholding tax exemption on interest payable on qualifying loans taken by an FSI-HQ company. The Government will also subsume the current tax incentive scheme for provision of these processing services under the FSI-HQ scheme, thus allowing FSI-HQs to enjoy incentivised income from their provision of high value-added processing services. These enhancements will be effective from 22 January 2009 to 31 December 2013 (both dates inclusive). MAS will release the details by April 2009. - Extension and Enhancement of Commodity Derivatives Traders (CDT) scheme
The Government will extend the CDT scheme (which is due to expire on 26 February 2009) and subsume it under a new Derivatives Market (Commodity Derivatives Trader) award under the Financial Sector Incentive scheme. The Government will also lift existing counterparty restrictions for trades carried out on exchanges under this scheme. These changes will be effective from 27 February 2009 to 31 December 2013 (both dates inclusive). MAS will release the details by April 2009. - Zero-Rating for the Aerospace Industry
The Government will expand the scope of qualifying aircraft to include all aircraft, including private aircraft, which is wholly used or intended to be wholly used for international transportation of goods and passengers. This is in line with the zero-rating of international transportation.To ease GST compliance costs for the MRO industry, zero-rating is also extended to cover the sale, maintenance or repair services of aircraft components or systems, as long as they form part of a qualifying aircraft. A new scheme will be introduced to facilitate the import of aircraft components or systems for qualifying aircraft without GST.
These changes will take effect from 1 April 2009. IRAS will release the details by March 2009.
- Suspension of GST and Duty on Goods Temporarily Removed from Zero-GST or Licensed Warehouses
The Government will, with effect from 1 April 2009, suspend GST and duty on goods (including wine) that are temporarily removed from a zero-GST or Licensed warehouse for auctions or exhibitions, even if the goods are sold during the auction or exhibition, provided that the goods are returned to the warehouses subsequently. Singapore Customs will release the details by March 2009. - Exemption of Duty to Facilitate Wine Trading Activities
The Government will exempt duty and provide GST relief for a specified quantity of wine for use at approved wine exhibitions and conference events with effect from 1 April 2009. Singapore Customs will release the details by March 2009. - Withholding Tax Exemption for Maritime Industry
The Government will extend the withholding tax exemption on interest payable on qualifying loans taken by shipping enterprises to acquire vessels which are registered with the Singapore Registry of Ships under the Block Transfer Scheme, subject to conditions. This extension will be for a further period of five years with effect from 1 January 2009. - Accelerated Writing-Down Allowance (WDA) for acquisition of Intellectual Property (IP) rights for Media and Digital Entertainment (MDE) content
The Government will enhance the current WDA incentive to allow MDE businesses to write down the costs of their qualifying IP rights for MDE content in two years, instead of five years. This accelerated write- down will apply for qualifying IP for MDE content acquired between 22 January 2009 and 31 October 2013 (both dates inclusive). - Test-Bedding Fund
The Government will put $200 million in a Test-Bedding Fund to make Singapore a “living lab” for companies and entrepreneurs to nurture new ideas, test innovative solutions and develop future global businesses. The fund will be managed by the Economic Development Board (EDB). - Taking the Lead in Innovation
In 2008, the Government set up the Core Innovation Fund to help private companies collaborate directly with government agencies to develop innovative solutions for public services. We will set aside $180 million in the fund over the next two years. In addition, the Government will be more proactive in seeking collaboration with the private sector, through the use of Calls-for-Collaboration (CFC). This will bring clusters of companies together to develop solutions for government agencies, businesses and the public.
Households
- Goods and Services Tax (GST) Credits and Senior Citizens’ Bonus
The Government will double the GST Credits and Senior Citizens’ Bonus that citizens will receive in 2009. This additional tranche will be paid on 1 March 2009
- Service and Conservancy Charges (S&CC) Rebates
The Government will provide an additional one month of S&CC Rebates to those living in a one-room to three-room HDB flats, who will therefore receive a total of three to 4.5 months for this year. Those in four-room HDB to Executive apartments will receive an additional half-month, or a total of one to two months of rebates. The additional S&CC rebate will be paid in April 2009.
- Rental Rebates
The Government will provide an additional month of rental rebates in 2009, to eligible households in public rental flats. The additional rebate, to be paid in March and December 2009, will supplement the existing rental rebates these low-income families are already receiving as part of the 2007 GST Offset Package.
- Personal Income Tax Rebate
The Government will give a personal income tax rebate of 20% (capped at $2,000) for tax-residents for Year of Assessment 2009. This will provide an immediate reduction in the tax payable for these individuals for last year’s income. - Instalment Option for Personal Income Tax Payment
The Government is allowing individual tax-residents who have lost their jobs in 2008 or lose their jobs in 2009 to pay their personal income taxes for year of assessment 2009 in monthly instalments of up to 24 months, up from the current 12 months allowed. Affected taxpayers can apply to IRAS for this extended instalment assistance. - Property Tax Rebate
The Government is providing a 40% property tax rebate for owner-occupied residential properties for 2009. - Removal of Tax on Net Annual Value of Property
The Government will remove this income tax on Net Annual Value of residential property with effect from Year of Assessment 2010. - Increase in Additional CPF Housing Grant
The maximum AHG quantum will be increased from $30,000 to $40,000. At the same time, the household income ceiling will be increased from $4,000 to $5,000. - Other measures
Utilities-Save (U-Save) Rebates: Eligible households will receive U-Save rebates of $70 to $210 in 2009.
Post-Secondary Education Account (PSEA) top-up: Young Singaporeans aged 7 to 20 will receive a top-up of $100 to $400 to their Post-Secondary Education Accounts (PSEA) in 2009.
- Public Transport Fund (PTF) Top-up
The Government will top-up the Public Transport Fund to $10 million to provide public transport vouchers for all low-income households who need help. - Financial Assistance Schemes for Education
The Ministry of Education (MOE) will enhance the financial assistance schemes for students in our schools, and introduce a Short-Term Study Assistance Scheme (SSAS) for students in our ITEs, polytechnics and autonomous universities. - Public Assistance Rate
The Government will increase the Public Assistance Rate for single-person households by $30 per month to $360 - Singapore Allowance
For government pensioners, the Government has decided to increase the Singapore Allowance by $20 per month to $240. - Citizens’ Consultative Committees (CCCs) ComCare Fund and Self-Help Groups (SHGs)
The Government is increasing funding to the CCC ComCare Fund to $7 million a year, for the next two years. It will also increase funding to SHGs to $9 million a year, for the next two years. - Increased Tax Deduction and Additional Grant for Government Funded Voluntary Welfare Organisations (VWOs)
The Government will increase the tax deduction for donations made in 2009 to Institutions of Public Character (IPCs) and other approved institutions from 200% to 250%.To support government-funded voluntary welfare organisations (VWOs), the Government will provide an additional $15 million in funding to them for one year (2009).
- Extending business measures to VWOs
The Government is extending the Jobs Credit provided to companies to all VWOs. - Extending Start-up Exemption to Companies Limited by Guarantee (CLGs)
The Government is extending the start-up tax exemption to Companies Limited by Guarantee. Under this exemption, qualifying start-ups can enjoy full tax exemption on their first $100,000 of chargeable income and 50% exemption for the next $200,000, for their first three Years of Assessment. This extension will take effect from Year of Assessment 2010.
- Expanding and Accelerating Public Sector Infrastructure Spending
The Government will increase public sector construction spending to between $18 billion and $20 billion in 2009. This is significantly higher than the $15 billion contracted in 2008 and $6 billion in 2007. - Developing Suburban Nodes and Rejuvenating Neighbourhoods
Investing in new regional commercial nodes such as Jurong Lake District, the new Kallang Riverside and Paya Lebar Central;
Rejuvenating our public housing neighbourhoods, including enlivening the public spaces within our estates and pushing ahead with ABC Waters Programme;
Linking together all parts of the island through a comprehensive road network and developing viable mass transit alternatives by expanding our rail networks;
Spending more on basic amenities such as our drainage and sewerage network. - Pushing Ahead on Sustainable Development
In total, the Government plans to spend $1 billion over the next five years on sustainable development initiatives. The funds will support programmes such as energy efficiency for industry and households, green transport, clean energy and the greening of our living spaces. - Enhancing School Education
Providing better facilities for an all-round education in every school, and accelerating some projects like the roll-out of indoor sports halls;
Enhancing both the size and quality of the teaching force; and
Bringing in allied educators into our schools to collaborate with teachers in providing better attention for every child. - Expanding healthcare capacity
Investing $4 billion over the next five years in healthcare infrastructure which will include the redevelopment of older hospitals, medical centres and a new hospital in the west, as well as seeing through existing projects like the Khoo Teck Puat Hospital in the north;
Building new community hospitals and boosting capabilities in treating chronic diseases (e.g. stroke, heart and kidney failure) and other age-related conditions (e.g. dementia);
Enhancing capabilities for long-term care (including rehabilitation, home care and palliative services after patients have been discharged from hospitals); and
Developing an electronic health records system that will be accessible by authorised medical practitioners at hospitals and polyclinics, and eventually extending to the community care sector.
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