Some Highlights Of Budget 2021

Supporting For Business

Jobs Support Scheme (JSS)

• Extend support for
  1. Tier 1 sectors (Eg. Aviation, Aerospace, and tourism)
     • 30% for wages paid from Apr to Jun 2021, and 10% for wages paid from Jul to Sept 2021
  2. Tier 2 sectors (Eg. Retail, Arts and Culture, Food Services, and Build Environment)
     • 10% for wages paid from Apr to Jun 2021

• Continue support for firms in some other sectors till Mar 2021

Further Support for Specific Sectors

• Aviation - Extend cost relief

• Land transport - Driver Relief fund for taxi and private hire car drivers

• Arts & Culture and Sports - Resilience Packages

Jobs Growth Incentive’s (JGI)

• Extend JGI qualifying window to end of Sep 2021 and eligible for companies that hire locals between Mar 2021 to Sep 2021.
  1. For non-mature locals
     • Up to 12 months based on 25% of the first $5,000 of gross monthly income, from the month of hire
  2. For mature workers (aged 40 and above), persons with disabilities and ex-offenders
     • Up to 18 months based on 50% of the first $6,000 of gross monthly income
     • Eligible companies that had hired locals between Sep 2020 and Feb 2021 will enjoy enhanced support from Mar 2021

Wage Credit Scheme (WCS)

• Extended by 1 year to 2021. Government co-funding ratio at 15% and the qualifying gross wage ceiling at $5,000

High-Growth Enterprises

• Extend and Enhance Financing Scheme – Venture Debt Programme

• Increase cap on loan quantum from $5 million to $8 million

Mature Enterprises: Micro, SMEs and Large Enterprises

• New Emerging Technology Programme

• CTO-as-a-Service: access to professional IT consultancies

• Digital Leaders Programme

• Extend Enhanced Support Schemes to up to 80% to end of Mar 2022

Large Local Enterprises

• Local Enterprises Funding platform to support enterprises scale up and expand overseas

Tax Changes

Extension of scheme/ support:

• Enhancement to the carry-back relief scheme for YA 2020 will be extended to apply to qualifying deductions for YA 2021

• Option to accelerate the write-off of the cost of acquiring Plant and Machinery (“P&M”) will be extended to capital expenditure incurred in the basis period for YA 2022 (ie FY 2021)

• Option to claim Renovation and Refurbishment (“R&R”) deduction will be extended to qualifying expenditure incurred in the basis period for YA 2022 (ie FY 2021)

• Business and IPC Partnership Scheme (“BIPS”) will be extended to 31 Dec 2023

• Not-for-Profit Organisation (“NPO”) tax incentive will be extended to 31 Dec 2027

• 250% Tax Reduction for Qualifying Donations will be extended to 31 Dec 2023

Other changes:

• Double Tax Deduction for Internationalism scheme

• Automation Support Package will lapse after 31 Mar 2021
  • Enterprise Development Grant and Enterprise Financing Scheme continue to be available to support automation, productivity and scale-up efforts
  • 100% Investment Allowance (“IA”) to support automation will be extended 2 years, for automation projects approved by Enterprise Singapore from 1 Apr 2021 to 31 Mar 2023

Changes of GST

• Effective from 1 Jan 2023, GST will be extended to
  • Low-value goods which are imported via air or post
  • Business-to-consumer imported on non-digital services

• Change of basis for determining whether zero-rating applies to a supply of media sales, from the place of circulation of the advertisement to the customer and direct beneficiary of the service belong