3 Things every company must know about Singapore 2015 Budget
Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam announced the 2015 budget for Singapore last Monday, 23 February 2015. During his talk, he said “Budget 2015 takes us into our future. Our aspirations are attainable. We can build a future that keeps social mobility alive in each new generation. A future that meets the aspirations of young and middle-aged Singaporeans, and enables us to realise the best in ourselves. And a future that provides greater assurance as we grow old.”
As we move along with the government’s initiative towards the betterment of our future, what benefits can the corporations and SMEs get from our 2015 budget? How will these help us in creating a better and sustainable future for our businesses? Here are some of the things on Singapore 2015 budget that that companies should know about our 2015 budget:
Total of $1.8 Billion for the extension of Wage Credit Scheme (WCS)
For the next two years, the government will co-fund 20% of the wage increases given to Singaporean employees that are earning $4,000 gross monthly wage. The businesses in Singapore are reorganising which leads to wage increases. Through the WCS, SMEs will be able to invest their resources in productivity initiatives and at the same time increase salaries of their employees.
Total of $800 Million for Corporate Income Tax Rebate
The corporate income tax rebate was extended until 2017. The cap for the rebate will be lowered from $30,000 to $20,000 per year. This reduction aims to support SMEs as the beneficiaries of the rebate. From 2013 up to this period, the companies were already receiving a 30% rebate of their payable tax.
Total of $240 Million for Companies that are Going Global
There will be three new actions that the government will do to support the companies that are venturing internationally. First, they will raise the support level for SMEs in all activities under International Enterprise Singapore’s grant schemes from 50% to 70% for three years.
Second, they will enhance the Double Tax Deduction for Internationalisation scheme. It will now cover salaries occurred for Singaporeans overseas. Co-sharing the risks and initial costs in venturing overseas and creating skilled jobs for Singaporeans will provide a greater support for the companies.
Lastly, a new tax incentive – the International Growth Scheme (IGS) will support the needs of larger companies for their globalisation efforts. They will enjoy 10% concessionary rate on the incremental income from qualifying activities.
Business owners must be updated with these initiatives which will allow their companies to grow. They should also maximize the support from the government and their capabilities to achieve success. Contact us and know how we can help you increase your productivity and success at work.