5 Things you need to know for Singapore budget 2020

Budget 2020 presented in the backdrop of COVID-19 outbreak is cognizant of the immediate challenges as well the need to bolster the economy to tackle the challenges emerging from the long-term structural changes happening around the world. With the weakest-ever GDP growth registered since the global economic crisis and amid looming uncertainties, the priority is undoubtedly on recouping the resilience. Budget 2020, dubbed as unity budget, aims at advancing as one nation to seize future opportunities by growing and transforming the economy and enterprises, but most importantly, by addressing the immediate imperatives of enterprises and workers by stabilising and supporting them. 

Here are 5 Things you need to know for Singapore budget

1. GST will remain at 7% 

In 2018, the minister announced his plans to raise the GST to 9%, sometime from 2021 to 2025. After reviewing revenue and expenditure projections, and considering the current state of the economy, he has decided that the GST rate increase will not take effect in 2021. 

2. Business and Household support during the coronavirus outbreak

He introduced a slew of measures amounting to $5.6 billion, to deal with the coronavirus outbreak. This includes a $4 billion – Stabilisation and Support Package – to help firms with cash flow and retain workers; $1.6 billion – Care and Support Package – for household expenses; as well as some additional support to sectors directly affected by the outbreak which are tourism, aviation, retail, food services, and point-to-point transport services.

3. Helping Business with the CASH FLOW

To help companies cope with the cash flow, a rebate of 25% on the taxes payable, capped at S$15,000 was announced for the Year of Assessment (YA) 2020.

4. New initiatives to Support Economy's Transformation and Growth

The Finance Minister Heng Swee Keat in his speech announced a plethora of new initiatives along with expanding the existing ones to help companies registered in Singapore grow, innovate, scale-up, internationalise, and build deep capabilities. Few of them are Expansion of SMEs Go and Grow Digital, Enhancements to Startup SG Equity (Financing for Early Stage Deep-Tech Startups) etc

5. Measure to Help Middle- Aged workers Stay Employed

Every Singaporean aged 25 and older will get $500 Skill future Credit top-up and those aged 40 to 60 will get another top-up of $500, Employers who hire those aged 40 and above through such programmes will get 20% salary support for six months, capped at $6,000.

For detailed tax changes read here : Budget 2020:Tax changes for business