The Singapore government announced, on 26 March 2020, that it is setting aside a further S$48.4 billion as part of a Supplementary Budget to support businesses, workers and families during the unprecedented crisis posed by the coronavirus pandemic.
The package focuses on three key areas: to save jobs, support workers and protect livelihoods; to help businesses overcome immediate challenges; and to strengthen economic and social resilience.
Among other measures, income tax payments for both companies and self-employed persons will be automatically deferred for three months to ease cash flow concerns for businesses.
Companies with Corporate Income Tax payment due in April, May and June 2020 will have the payments deferred to July, August and September 2020. This is on top of the corporate income tax benefits – interest-free instalments and income tax rebates – announced in February’s Budget.
Self-employed persons who have their personal income tax payments due in May, June and July 2020 will have them deferred to August, September and October 2020.
There is no need for companies or self-employed persons to make any application. The Inland Revenue Authority of Singapore (IRAS) will not make any GIRO deductions during the months that income tax payments are deferred.
Deputy Prime Minister and Finance Minister Heng Swee Keat told parliament: “This is a landmark package, and a necessary response to a unique situation.” He named it as the “Resilience Budget” to reflect Singapore’s determination to remain resilient in the face of these challenges.
Sovereign is here to support your business, our experienced team can guide you through these difficult times.