To help businesses cushion the economic impact of the COVID-19 outbreak, the “Stabilisation and Support Package” was announced in the Budget Statement for the financial year 2020. As the name suggests, the relief package seeks to stabilise the economy and support industries in this period of economic uncertainty. There are industry-specific and broad-based measures to support employers retain their employees and help businesses cope with cash flow difficulties precipitated by the COVID-19 outbreak.
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Corporate Income Tax Rebate |
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Measures Introduced in Budget 2020 |
Impact |
Action Required |
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All companies will receive a 25% CIT rebate for the Year of Assessment (“YA”) 2020. The rebate is capped at S$15,000. The CIT rebate is available to all companies including registered business trusts and Singapore branches of foreign companies. |
The CIT rebate reduces the tax liability of tax paying companies in YA 2020 (financial year ended 2019). As the CIT rebate will be capped at S$15,000, this measure will have a greater benefit for small and medium enterprises in terms of the reduction in their effective tax rates. |
There is no action required from companies to obtain the CIT rebate. The CIT rebate will be computed automatically. Companies that have filed and paid their estimated tax liability for YA 2020 can expect a refund equal to the amount of CIT rebate allowed to them. |
For further information on this measure, watch our Singapore Budget 2020 Insights video:
