SINGAPORE – Budget 2024/2025 : initiatives and support measures to help businesses thrive

Published On - 3 May, 2024

Albert Hui Singapore

Singapore’s 2024-2025 budget statement on 16 February 2024 contained a suite of support measures to help businesses tackle cost concerns, and initiatives to improve the competitiveness of Singaporean companies.

Here is a recap of the key measures and initiatives:

  1. 50% Corporate Income Tax (CIT) rebate

Companies in Singapore will receive a Corporate Income Tax (CIT) rebate of 50 per cent, capped at S$40,000 for 2024. For companies which are not profitable, minimum cash payouts of S$2,000 will be disbursed to businesses with at least one local employee in 2023.

  1. Enterprise Financing Scheme enhancements

The already existing Enterprise Financing Scheme (EFS) will see significant improvements:

  • Small and medium-sized enterprises (SMEs) can expect a permanent raise in the maximum loan quantum for the EFS – SME Working Capital Loan, increasing from SG$300,000 to SG$500,000.
  • To help enterprises with trade financing requirements, the enhanced maximum loan quantum of SG$10 million under the EFS – Trade Loan will continue until 31 March 2025.
  • To assist domestic construction firms in overcoming tough market conditions, the EFS – Project Loan will also be extended to 31 March 2025, with a maximum loan quantum of SG$15 million for construction projects.
  1. New Refundable Investment Credit (RIC) scheme

Companies with substantive economic activities in Singapore may leverage the new Refundable Investment Credit (RIC) scheme. Targeted activities include investing in new productive capacity, carrying out research and development (R&D) and innovation activities.

Awarded by the Singapore Economic Development Board (EDB) and Enterprise Singapore (EnterpriseSG), this scheme will be granted based on eligible expenses a company incurs for an approved project for up to ten years.

The amount of RIC a company can receive will vary based on the support rates for various qualifying expenditure categories, including capital outlays, labour costs, training expenses, and fees for work outsourced in Singapore.

Should you have any inquiries regarding how the Singapore 2024/25 may impact your business operations or your personal financial situation, please contact us via contact@orbis-alliance.com.