Great news for SMEs!
SME and enterprises are expected to receive finance support towards automation transformation with more than $400 million in the next 3 years as you probably have heard from Singapore Budget 2016. We would expect much emphasis on technology adoption and innovation in the industries. Business owners can have a more convenient way in applying for government schemes once Singapore Business Grants Portal is ready in 4th Quarter 2016.
Areas of focus for financial support to business development as follow:
1. New Investment Allowance (100% for automation equipment)
2. Grant scale up automation projects (up to 50% project cost, capped at $1 million)
3. Improve SME to loans accessibility
4. International Enterprise (IE) Singapore, Spring to help businesses with overseas markets accessibility
5. Corporate Income Tax Rebate to be raised from usual 30% to 50% tax payable where rebate per year is up to $20,000 for YA2016 and YA2017.
6. SME Working Capital Loan to help SMEs to develop and grow with loans schemes up to $300,000 for each company
7. Extend Special Employment Credit up to 2019 to offset wages for older workers
Foreign Worker Levy & Work Permit Holders
8. One year deferment for levy increased for Work Permit Holders who are working in Marine and Process sectors
9. No changes to the levy for the Manufacturing sector
10. Increase levy for the Construction sectors and Services sectors
11. S Pass Levy for every sector to increase
Help With Financing and Tax Incentives to Support Scale-ups
12. Expand SME Mezzanine Growth Fund from current $100 million to $150 million
13. Merger & Acquisition (M&A) allowance increase to $40 million from the current $20 millioncap per YA
14. Upfront certainty of non-taxation of companies’ gains on equity investments extended until 31 May 2022
15. Extend Double Tax Deduction for Internationalisation scheme till 31 March 2020
Accounting services can be a great help needed by Singapore SME to gain insights and maximize the funds support. It’s definitely a good time to gear towards automation and implement innovation and technology in your business. For startups or SMEs looking for additional services besides company incorporation or corporate income tax matters, please contact our account consultants for more info where we can provide solutions to help in automating your current accounting process and management.