Solidarity Budget 2020 - Forvis Mazars

Singapore Unity Budget 2020
Singapore Supplementary Resilience Budget
Singapore Supplementary Solidarity Budget

Solidarity Budget

In view of the extended COVID-19 chain of transmission, the Singapore government has implemented a set of safety measures taking effect from 7 April 2020 to 4 May 2020 which includes the closure of non-essential workplace and restricted interaction.

To help businesses and individuals cope with the safety measures implemented, the Singapore government has mobilised an addition S$5.1 billion to cover the 3 main categories:

Enhance Protection for jobs and livelihoods
Strengthen Support for firms and workers
Provide More Help to Singaporeans

Enhance Protection for jobs and livelihoods

Enhancing Jobs Support Scheme (“JSS”)

Singapore Government will pay 75% on the first S$4,600 of monthly salaries for every local employee for the month of April 2020
For May 2020 onwards, wage support levels will revert to original levels as indicated in the Resilience Budget (75% for aviation and tourism sectors, 50% for F&B sectors and 25% for all other sectors)
First JSS payout will be brought forward to April 2020 from May 2020

SEP Income Relief Scheme (SIRS)

As announced earlier in the resilience budget, eligible Singaporean SEPs will receive S$1,000 a month, for 9 months.
In view of the payout, eligible Singaporean SEPs will receive 3 quarterly cash payouts of S$3,000 each in May, July and October 2020.
Under the announcements under the Solidarity Budget, the scope has been extended so that more SEPs will qualify for SIRS:
- Automatic inclusion for SEPs who also earn a small income from employment work
- Enhanced Annual Value of property criterion of S$21,000, up from S$13,000 previously
Other criteria remain unchanged.

Strengthen Support for firms and workers

Cash Flow and Credit Support of Employers

Waiver of monthly Foreign Worker Levy (“FWL”) due in April 2020 to help firms cope with cash flow
FWL rebate of S$750 in April 2020 from levies paid this year, for each Work Permit or S Pass holder
Laws to ensure property owners pass on Property Tax rebates to tenants. Such rebates will typically work out to slightly more than one month of rent.
- A bill will be passed to ensure property owners pass on the Property Tax Rebate in full, to tenants.
1-month rental waiver for office, industrial, and agriculture tenants of Government agencies
Government’s risk share raised from 80% to 90% for Temporary Bridging Loan Programme (to S$ 5 million), for EFS Loan (to S$ 10 million) and EFS-SME Working Capital Loan (To S$ 600,000)
- Applies to loans initiated from 8 April 2020 till 31 March 2021.

Cash Payments for Singaporeans

Additional cash payout of S$300 for all Singaporeans aged 21 and above in 2020 in addition to the cash payouts of S$300, S$600 or S$900 (as confirmed in the Resilience Budget) depending on the Assessable income of each individual (and properties owned) from enhanced Care & Support Package
Other payments from Resilience Budget will remain and be paid out in June 2020.

Additional Tax Measures

Income Tax for Individuals (including sole proprietors and partnerships): Extended Filing Deadline to 31 May 2020 from 18 April 2020.
Income Tax for Trusts, Clubs and Associations: Extended Filing Deadline to 30 June 2020 from 15 April 2020.
Estimated Chargeable Income (ECI) for companies with Financial Year ending Jan 2020: Extended Filing Deadline to 30 June 2020 from 15 April 2020.
GST Returns for accounting period ending Mar 2020: Extended Filing Deadline to 11 May 2020 from 30 April 2020.
Estimated Chargeable Income (ECI) for companies with Financial Year ending Feb 2020 : Extended Filing Deadline to 30 June 2020 from 31 May 2020.
Tax Clearances for foreign employees due in May 2020: Extended Filing Deadline by 30 June 2020.
S45 Withholding Tax Forms due in Apr 2020: Extended Filing Deadline to 15 May 2020 from 15 April 2020.
Tax Clearances for foreign employee in April 2020: Extended Filing Deadline by 30 June 2020.
Additional guidance has been included in respect for Companies / Individuals in view of the COVID-19 outbreak
- Companies:
  - The determination of the Tax Residence Status of a Company for the YA 2021
  - Permanent Establishment exposure of foreign companies due to employees remaining in Singapore due to travel restrictions.
- Individuals
  - Determination of employment income by Singaporeans / Singapore Permanent Residents exercising overseas employment and are now working remotely from Singapore for that employment due to COVID-19.
  - Non-resident foreigners exercising overseas employment who are on short-term business assignment in Singapore and are unable to leave due to COVID-19.

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