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Budget 2026

Corporate Income Tax (CIT) Rebate – YA 2026

Purpose: Provide operating cost relief to all active companies to support cash flow and competitiveness.

Details

  • Rebate Rate: 40 % of corporate tax payable for Year of Assessment (YA) 2026.

  • Minimum benefit: S$1,500 (if company employed at least one local worker in 2025).

  • Cap: S$30,000 total benefit (rebate + cash grant)

Enterprise Innovation Scheme (EIS)

Purpose: Encourage innovation, capability building and tech adoption (including AI) through enhanced tax deductions.

Under EIS, companies can claim up to 400% tax deductions or allowances on qualifying expenditures. Eligible businesses may also opt to convert part of the qualifying expenditure into a 20% non-taxable cash payout, subject to conditions.

Qualifying Activities (existing base)

  • Qualifying R&D conducted in Singapore.

  • Registration of Intellectual Property (IP) rights.

  • Acquisition/licensing of IP rights.

  • Training courses eligible for SkillsFuture funding aligned to the national Skills Framework.

  • Innovation projects with approved partner institutions (e.g., polytechnics, ITE).

New AI-related Activity

From YA 2027 to YA 2028, qualifying AI-related expenditure will be added to the list of activities eligible for 400% deduction.

Important Clarification:

AI-related expenditure is not eligible for the cash conversion option (see below).
The enhanced deduction applies only to qualifying AI adoption and implementation costs as defined by IRAS.

Typical AI-related spend that may qualify:

  • AI platform subscriptions used for business transformation
  • Implementation costs for AI systems integrated into workflows
  • Fees for AI development services

(The final scope of qualifying AI expenditure will be published by IRAS.)

Market Readiness Assistance (MRA) Grant

Purpose: Help companies defray costs of entering and expanding in overseas markets (overseas promotion, business development, set-up).

Pre-Budget (Prior Structure)

  • SMEs could get 50 % co-funding, capped at S$100,000 per company per new market.

  • Eligible activities included trade fair participation, overseas partner searches, overseas staff deployment, and advisory/legal services.

Budget 2026 Enhancements

  • Support levels:

    • SMEs: Up to 70 % of eligible costs (from 1 Apr 2026 until 31 Mar 2029).

    • Non-SMEs: Up to 50 % of eligible costs.

  • Enhanced cap S$100,000 per company per market continues.

  • The prior requirement of selling <S$100,000 in a target market to qualify is phased out later in 2026.

Where To Apply

Double Tax Deduction for Internationalisation (DTDi)

Purpose: Support companies expanding overseas by allowing enhanced tax deductions on internationalisation expenses.

Qualifying Activities (Expanded)
Businesses can automatically claim a 200 % tax deduction on qualifying expenses up to S$400,000 per YA (raised from S$150,000). Qualifying activities (without prior approval) now include:

  • Overseas market development and investment study trips.

  • Market feasibility and surveys.

  • Master licensing and franchising costs.

  • Overseas business development (e.g., trade visits).

  • Production of corporate brochures for overseas distribution.

Note: Expenses beyond S$400,000 or specific campaigns (trade offices, e-commerce campaigns) still require approval by EnterpriseSG or Singapore Tourism Board.

Where To Apply/Claim

  • Claim via the company’s tax return (Form C) with supporting documentation.

  • Prior approval for large or special categories through EnterpriseSG/STB as needed.

Enterprise Financing Scheme (EFS)

Purpose: Provide financing support and credit for business expansion (trade, working capital and asset financing).

Budget 2026 Enhancements

  • Higher loan quantum options for trade and fixed asset loans.

  • Overall exposure cap raised to up to S$50 million per borrower (group cap).

  • This allows larger firms or groups to access higher financing limits under the scheme.

Where To Apply

  • Via Enterprise Singapore’s EFS portal (accessible through the Business Grants Portal or EnterpriseSG site).

  • Applications involve business financials, loan purpose, and risk assessment.

Startup SG Equity Scheme

Purpose: Government co-invests with independent private investors into Singapore-based startups to catalyse funding and growth.

Budget 2026 Investment

  • S$1 billion top-up to support both early-stage and growth-stage companies.

Where To Apply / Eligibility

  • Administered by Enterprise Singapore / SEEDS Capital / EDBI.

  • Typical eligibility (for early-stage startups):

    • Singapore-incorporated private limited company.

    • Innovative product/service with IP or strong technical foundation.

    • Scalable business with global market potential.

    • A ready, independent third-party investor (e.g., VC) for co-investment engagement.

How To Apply

  • Contact EnterpriseSG, SEEDS Capital or EDBI directly (find contacts via EnterpriseSG soft-landing pages).

  • Submit company profile, business plan, financials and investor term sheet.

Champions of AI Programme

Purpose: Help companies adopt and scale enterprise-wide AI transformation.

What It Is

  • A new initiative to provide tailored support to companies undertaking comprehensive AI adoption — beyond point solutions.

  • May include transformation planning, capability building, workforce training and advisory support.

Where To Find Details

  • Exact scheme details and application modalities are likely to be announced by Enterprise Singapore or government agencies in 1H 2026. (Watch EnterpriseSG and MOF announcements.)

Add Your Heading Text Here

Senior Employment Credit (SEC)

Purpose: Provide wage offsets to help employers hire and retain senior Singaporean workers.

Details (Post-Budget 2026)

  • Extended until 31 Dec 2027.

  • Employers receive wage offsets for Singaporean workers aged 60+ earning under S$4,000 per month.

  • Offset rates vary by age band, up to 7 % of wages (for older age tiers).

How It Works

  • Payouts are automatic (through IRAS) if eligibility conditions are met — no separate application required.

Progressive Wage Credit Scheme (PWCS)

Purpose: Help employers adjust to mandatory wage increases and voluntarily raise wages of lower-wage workers.

Key Features

  • Co-funding support for wage increases of eligible resident employees continues through 2026.

  • 2025: 40 % co-funding; 2026: 20 % co-funding (on qualifying wage increases).

  • Employers do not need to apply — payouts are computed and disbursed based on CPF contribution data.

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BUDGET 2023: MOVING FORWARD IN A NEW ERA

Supporting Businesses

Singapore Global Enterprise Initiative

The Singapore Global Enterprises initiative helps promising companies with customised assistance in areas such as innovation, internationalisation and fostering of partnerships with other companies, will receive a S$1 billion shot in the arm in Budget 2023.

Promising companies will be offered specialised capability building programmes tailored to their needs. This could involve working with experts to strengthen the core leadership team, accelerate their internationalisation plans, and build a strong talent pipeline.

Enterprise Singapore will also support companies to secure resources to execute their growth plans, and to build sustained research and innovation capabilities so as to strengthen their value proposition and stay competitive.

More information can be found here:

https://www.enterprisesg.gov.sg/keepgrowing/go-global

SME Co-Investment Fund

Government will set aside additional $150 million via SME Co-Investment Fund to invest in promising SMEs.

The Programme aims to catalyse the supply of patient growth capital for growth-oriented SMEs based in Singapore, through co-investing with the private sector.

The Government, as co-investor, would rely principally on the private sector fund managers to assess investment worthiness, so as to avoid eroding commercial discipline in investment decisions.

Private equity fund managers (“Fund Managers”) with experience in SME investing and the ability and aspiration to grow Singapore-based SMEs into globally competitive companies are invited to submit a proposal.

National Productivity Fund

Government will top up $4 billion to National Productivity Fund and expand scope to support investment promotion as a supportable activity. 

The fund will be used to anchor more quality investments in Singapore. This includes supporting companies to build new capabilities, add greater value to our domestic ecosystems, and upskill our workers. Ultimately, these efforts will lead to better-paying jobs for Singaporeans.

Enterprise Innovation Scheme

The following suite of tax measures will be enhanced or introduced under the Enterprise Innovation Scheme to encourage businesses to engage in research and development (R&D), innovation, and capability development activities.

(A) Enhanced Tax Deduction for Staff Costs and Consumables Incurred on Qualifying R&D Projects Conducted in Singapore

Currently, businesses enjoy a 100% tax deduction for all qualifying R&D expenditure incurred on qualifying R&D projects, and an additional 150% tax deduction for staff costs and consumables incurred on qualifying R&D projects conducted in Singapore.

Announced in Budget 2023, the enhanced tax deduction will allow businesses to enjoy a 400% tax deduction for the first $400,000 of staff costs and consumables incurred on qualifying R&D projects conducted in Singapore for each Year of Assessment (YA) from YA2024 to YA2028.

All other existing eligibility criteria and conditions for tax deductions on staff costs and consumables incurred on qualifying R&D projects conducted in Singapore are applicable to the enhancement.

  

(B) Enhanced Tax Deduction for Qualifying Intellectual Property (IP) Registration Costs

Currently, businesses enjoy a 200% tax deduction on the first $100,000 of qualifying IP registration costs on registration of patents, trademarks, designs, and plant varieties. Subsequent qualifying IP registration costs can enjoy a 100% tax deduction.

Announced in Budget 2023, the enhanced tax deduction will allow businesses to enjoy a 400% tax deduction for the first $400,000 of qualifying IP registration costs incurred for each YA from YA2024 to YA2028. 

All other existing eligibility criteria and conditions for tax deductions on qualifying IP registration costs are applicable to the enhancement. 

(C) Enhanced Tax Allowance/Deduction for Acquisition and Licensing of Qualifying IP Rights

Under existing tax measures for IP rights, companies and partnerships can enjoy a 100% writing-down allowance on capital expenditure incurred on the acquisition of qualifying IP rights. Businesses can enjoy a 200% tax deduction on the first $100,000 of qualifying expenditure on licensing of qualifying IP rights. Subsequent expenditure on licensing of qualifying IP rights can qualify for a 100% tax deduction.

Announced in Budget 2023, the enhancement will allow businesses to enjoy tax allowances/deductions of 400% for the first $400,000 of qualifying expenditure incurred on the acquisition and licensing of qualifying IP rights for each YA from YA2024 to YA2028. The expenditure cap of $400,000 is applied across IP rights acquisition and licensing collectively. The enhancement will only be available to businesses that generate less than $500 million in revenue in the relevant YA.

All other existing eligibility criteria and conditions for tax allowances/deductions on acquisition and licensing of qualifying IP rights are applicable to the enhancement. 

(D) Enhanced Tax Deduction for Qualifying Training Expenditure

Today, businesses can claim a 100% tax deduction on training expenditure as a deductible business expense.

Announced in Budget 2023, the enhancement will allow businesses to enjoy a tax deduction of 400% for the first $400,000 of qualifying training expenditure incurred for each YA from YA2024 to YA2028.
The enhancement is only applicable to qualifying training expenditure incurred on courses that are eligible for SkillsFuture Singapore funding and aligned with the Skills Framework. The list of courses that are eligible is available on go.gov.sg/eis-training.

All other existing eligibility criteria and conditions for tax deductions on training expenditure are applicable to the enhancement.

(E) Introduce Tax Deduction for Innovation Projects Carried Out with Polytechnics, the Institute of Technical Education (ITE) or Other Qualified Partners

To encourage businesses to kickstart their innovation journey by tapping on existing technical and innovation capabilities within the polytechnics, the ITE or other qualified partners (collectively termed as partner institutions), the Government will introduce a new tax deduction where businesses can claim a 400% tax deduction for up to $50,000 of qualifying innovation expenditures incurred on qualifying innovation projects carried out with partner institutions for each YA from YA2024 to YA2028. 

The current list of partner institutions include: 

a) Singapore Polytechnic 

b) Ngee Ann Polytechnic 

c) Republic Polytechnic 

d) Nanyang Polytechnic 

e) Temasek Polytechnic 

f) The Institute of Technical Education 

g) Precision Engineering Centre of Innovation at A*STAR SIMTech 

Qualifying innovation projects with partner institutions refer to projects that predominantly involve one or more of the following innovation activities: 

a) Research and experimental development activities; 

b) Engineering, design, and other creative work activities; 

c) IP-related activities; and 

d) Software development and database activities. 

The relevant partner institutions will validate the project as a qualifying innovation project and issue the innovation project invoice. Expenditure incurred outside of the collaboration with the partner institution will not qualify for this tax deduction. 

(F) Cash Conversion

Eligible businesses can opt for a non-taxable cash payout at a cash conversion ratio of 20% on up to $100,000 of total qualifying expenditure across all qualifying activities (described under (A) to (E) above) for each YA, in lieu of tax deductions/allowances. The cash payout will be capped at $20,000 per YA. Applications for the cash payout are to be submitted together with the filing of the businesses’ income tax returns. 

Eligible businesses refer to companies, registered business trusts, partnerships and sole-proprietorships with at least three full-time local employees (Singapore Citizens or Permanent Residents who are paid CPF contributions) earning a gross monthly salary of at least $1,400, in employment for six months or more, in the basis period of the relevant YA. 

Supporting Workers

Jobs-Skills Integrators

Pilot Jobs-Skills Integrators in Precision Engineering, Retail, and
Wholesale Trade sectors to bring together key players to develop
industry-relevant training and facilitate job matching.

Progressive Wage Credit Scheme

To further strengthen support for employers in uplifting lower-wage employees, the Government will enhance PWCS co-funding support for wage increases in the qualifying year 2023 (see Table 1). The enhanced 2023 co-funding support will also apply to wage increases given in qualifying year 2022 and sustained in 2023. All other scheme parameters remain unchanged.

Senior Employment Credit (SEC)

Under the SEC, the Government provides wage offsets to help employers that employ Singaporean workers aged 55 and above adjust to the higher Retirement Age and Re-employment Age. The SEC will be extended from 2023 to 2025 to continue providing wage offsets, and encourage employers to offer flexible work arrangements and structured career planning.

Details to be announced at MOM’s Committee of Supply (COS) 2023.

Part-time Re-employment Grant

The Part-time Re-employment Grant (PTRG) helped to increase the availability of part-time re-employment to senior workers in participating companies. The Part-time Re-employment Grant will be extended to 2025 to continue providing wage offsets, and encourage employers to offer flexible work arrangements and structured career planning.

Details to be announced at MOM’s Committee of Supply (COS) 2023.

Enabling Employment Credit (EEC)

To encourage more employers to hire persons with disabilities, the EEC will be enhanced to cover a larger proportion of wages and a longer duration for PwDs who have not been working for at least six months.

Details to be announced at MOM’s Committee of Supply (COS) 2023.

Uplifting Employment Credit

The Uplifting Employment Credit is a hiring incentive that encourages firms to employ ex-offenders, so as to support their reintegration into
society.

Details to be announced at MOM’s Committee of Supply (COS) 2023.

CPF Transition Support for Platform Workers

To improve the retirement and housing adequacy of Platform Workers (PWs), in November 2022, the Government accepted the Advisory Committee on Platform Workers’ (“the Committee”) recommendation to align CPF contribution rates by PWs and Platform Companies with the rates of employees and employers respectively (“Aligned CPF Contribution Rates”), over a phase-in period of five years.

PWs from mandatory cohorts as well as PWs who choose to opt in to the Aligned CPF Contribution Rates will see the additional CPF contributions from Platform Companies go towards their total earnings. The alignment will boost their savings in their CPF Ordinary and Special Accounts (CPF-OSA), so that they have more for retirement, and can finance their housing loans using CPF instead of cash. At the same time, the Committee recognised that some of these PWs might experience a reduction in take-home pay as they contribute more to their CPF accounts, and therefore recommended that the Government consider providing support for PWs to ease the impact.

Government Introduces the PW CPF Transition Support Scheme in Budget 2023 

In line with the Committee’s recommendation, the Government will introduce the PW CPF Transition Support (PCTS) to provide support for lower-income PWs during the phase-in period. The PCTS will offset part of the PW’s share of the year-on-year increase in CPFOSA contribution rates from Years 1 to 4. Singaporean PWs earning $2,500 or less per month (including from platform work and other employment sources) will be eligible if they are required to or opt in to make contributions based on the Aligned CPF Contribution Rates. 

More details about the PCTS will be announced at the Ministry of Manpower’s Committee of Supply 2023.

Changes to CPF Contribution Rates

The following Budget 2023 initiatives will help enhance the retirement adequacy of seniors who are preparing for or are already in retirement, and help middle-income Singaporeans to save more for retirement.

(A) Increase in Senior Worker CPF Contribution Rates

In 2019, the Government announced that CPF contribution rates will be raised gradually over the next decade or so for Singaporean and Permanent Resident workers aged above 55 to 70 (see Table 1). When the increases have been fully implemented, those aged above 55 to 60 will have the same CPF contribution rates as younger workers.

The first two steps of increases took effect on 1 January 2022 and 1 January 2023. The next increase in senior worker CPF contribution rates will take place on 1 January 2024, as shown in Table 2. As with previous increases, this increase will be fully allocated to the Special Account, to help senior workers save more for retirement.

To mitigate the rise in business costs due to this increase, as part of Budget 2023, the Government will provide employers with a one-year CPF Transition Offset equivalent to half of the 2024 increase in employer CPF contribution rates for every Singaporean and Permanent Resident worker they employ aged above 55 to 70 (see Table 2). This will be provided automatically and employers do not need to apply for the offset.

(B) Increase in Minimum CPF Monthly Payouts for Seniors on the RSS

The Government continues to provide targeted support for seniors with less resources to rely on in retirement. The Silver Support Scheme, which covers a third of all seniors aged 65 and above, provides quarterly cash supplements of up to $900 to eligible seniors in addition to their CPF payouts and other forms of Government support, such as the Workfare Income Supplement and ComCare. Many seniors also receive additional retirement support from their loved ones and from their private savings.

Currently, the minimum CPF monthly payout that seniors on the RSS1 can receive is $250. As part of Budget 2023, the Government will raise the minimum CPF monthly payout to $350 from 1 June 2023 for all seniors on the RSS. This will mean higher monthly payouts for seniors who are currently receiving less than $350 per month. Payouts will continue until CPF savings are depleted. These seniors on the RSS can opt to join CPF LIFE any time before turning age 80 to receive lifelong payouts.

(C) Increase in the CPF Monthly Salary Ceiling

The CPF monthly salary ceiling sets the maximum amount of CPF contributions payable for Ordinary Wages, and is currently set at $6,000. There is also the CPF annual salary ceiling which sets the maximum amount of CPF contributions payable for all wages received in the year, inclusive of both Ordinary Wages and Additional Wages. It is currently set at 17 times of the monthly salary ceiling to account for bonuses equivalent to five months’ salary, and is currently set at $102,000. Both salary ceilings were last updated in 2016.

To keep pace with rising salaries, as part of Budget 2023, the Government will raise the CPF monthly salary ceiling from $6,000 to $8,000 by 2026. The increase will take place in four steps, as shown in Table 3, to allow employers and employees to adjust to the changes.

There will be no change to the CPF annual salary ceiling at this juncture, but it will be reviewed periodically to ensure it continues to cover the broad majority of CPF members.


To ensure that employees earning the same annual salary receive the same CPF contributions regardless of their salary structure, the CPF monthly salary ceiling will eventually be set at one-twelfth of the CPF annual salary ceiling at steady state.

Measures To Encourage Philanthropy And Volunteerism

The following Budget 2023 measures aim to foster a culture of giving in Singapore by encouraging philanthropy and volunteerism.

(A) Extension of the 250% Tax Deduction for Qualifying Donations to Institutions of a Public Character (IPCs) and Eligible Institutions

To continue to encourage giving, the Government will extend the 250% tax deduction for qualifying donations made to IPCs and other eligible institutions (see Table 1) for another three years, i.e., for donations made during the period 1 January 2024 to 31 December 2026 (both dates inclusive).

(B) Enhancement of the Corporate Volunteer Scheme.

The Business and IPC Partnership Scheme (BIPS) provides businesses with 250% tax deduction on wages and qualifying expenses when their staff volunteer, provide services, or are seconded to IPCs. The qualifying expenditure is subject to an annual cap of $250,000 per business, and $50,000 per IPC. 

BIPS is due to lapse after 31 Dec 2023. BIPS will be enhanced into a broader Corporate Volunteer Scheme, and extended for three more years to 31 December 2026. In addition, the following enhancements will be made with effect from 1 January 2024. First, the scope of qualifying volunteering activities will be expanded to include activities which are conducted virtually (e.g., online mentoring and tuition support for youths/children) or outside of the IPCs’ premises (e.g., refurbishment of rental flats). Second, the cap on qualifying expenditure per IPC will be doubled from $50,000 to $100,000 per calendar year. All other conditions of the scheme will remain the same.

Global Anti-Base Erosion (GloBE) Rules (I.E., Income Inclusion Rule And Undertaxed Profits Rule) And Domestic Top-Up Tax (DTT)

Existing Tax Treatment

In Budget 2022, Minister for Finance announced that in response to the global minimum effective tax rate under the Pillar 2 GloBE rules of the Base Erosion and Profit Shifting (BEPS) 2.0 project, and based on consultation with industry stakeholders, MOF would study the introduction of a top-up tax. If introduced, this would top up the effective tax rate of multinational enterprises operating in Singapore with annual group revenue of at least €750 million, as reflected in the consolidated financial statements of the ultimate parent entity, to 15%.

New Tax Treatment

Singapore plans to implement the GloBE rules and DTT from businesses’ financial year starting on or after 1 January 2025. We will continue to monitor the international developments and adjust our implementation timeline as needed if there are delays internationally.

We will also continue to engage businesses and provide them with sufficient notice ahead of any rules becoming effective.

Enterprise Innovation Scheme (EIS)

Existing Tax Treatment

Currently, the following tax measures are available to
encourage research and development (R&D),
intellectual property (IP) registration, IP rights
acquisition and IP rights licensing:

a) 250% tax deduction for staff costs and consumables incurred on qualifying R&D projects conducted in Singapore under sections 14C and 14D of the Income Tax Act 1947(ITA). Current sunset date is Year of Assessment (YA) 2025. 

b) 200% tax deduction for the first $100,000 (and 100% for amounts exceeding $100,000) of qualifying IP registration costs under section 14A of the ITA. Current sunset date is YA2025. 

c) 100% writing-down allowance (WDA) over a period of five, 10 or 15 years on acquisition cost of qualifying IP rights under section 19B of the ITA. Current sunset date is YA2025. 

d) 200% tax deduction for the first $100,000 (and 100% for amounts exceeding $100,000) of qualifying IP rights licensing expenditure under sections 14 or 14C, and 14U of the ITA. Current sunset date for section 14U is YA2025. In addition, 100% tax deduction can be claimed for training expenditure incurred, subject to the general tax deduction rules under sections 14 and 15 of the ITA.

New Tax Treatment

To encourage businesses to engage in R&D, innovation and capability development activities, the following suite of tax measures will be enhanced or introduced under the EIS:

a) Enhance the tax deduction to 400% for the first $400,000 of staff costs and consumables incurred on qualifying R&D
projects conducted in Singapore for each YA from YA2024 to YA2028.

b) Enhance the tax deduction to 400% for the first $400,000 of qualifying IP registration
costs incurred per YA from YA2024 to YA2028.

c) Enhance the tax allowance/deduction to
400% for the first $400,000 (combined cap) of qualifying expenditure incurred on
the acquisition and licensing of IP rights per YA from YA2024 to YA2028. This enhancement will only be available to businesses that generate less than $500
million in revenue in the relevant YA.

d) Enhance the tax deduction to 400% for the first $400,000 of qualifying training expenditure incurred on qualifying courses
(i.e. courses that are eligible for SkillsFuture Singapore funding and aligned with the Skills Framework) per YA from YA2024 to YA2028.

e) Introduce a 400% tax deduction for up to $50,000 of qualifying innovation expenditure incurred on qualifying innovation projects carried out with polytechnics, the Institute of Technical Education, and other qualified partners per YA from YA2024 to YA2028.

f) Allow businesses to, in lieu of tax deductions/allowances, opt for a non-taxable cash payout at a cash conversion ratio of 20% on up to $100,000 of total qualifying expenditure across all qualifying activities in (a) to (e) above per YA. The cash payout option will be capped at $20,000 per YA, and will only be available to businesses which have at least three full-time local employees (Singapore Citizens or Permanent Residents with CPF contributions) earning a gross monthly salary of at least $1,400 in employment for six months or more in the basis period of the relevant YA. 

g) The sunset dates for section 14A (Deduction for costs of protecting IP), section 14C (Deduction for qualifying expenditure on R&D), section 14D (Enhanced deduction for qualifying expenditure on R&D), section 14U (Enhanced deduction for expenditure on licensing IP rights) and section 19B (WDA for capital expenditure on acquiring IP rights) of the ITA will be extended till YA2028, in line with the above enhancements.

All other conditions under sections 14A, 14C, 14D, 14U and 19B of the ITA remain the same.

For more information on this scheme, please refer to Annex D-1 IRAS will also provide further details of the changes by 30 June 2023.  

Enhance Double Tax Deduction For Internationalisation (DTDi) Scheme

Existing Tax Treatment

Under the DTDi scheme, businesses are allowed a tax deduction of 200% on qualifying market expansion and
investment development expenses, subject to prior
approval from Enterprise Singapore (EnterpriseSG) or
Singapore Tourism Board (STB).

The DTDi scheme is in place until 31 December 2025.

New Tax Treatment

E-commerce is an increasingly important and relevant mode of overseas expansion for businesses. To support businesses in their efforts to overcome initial challenges and build up capabilities in internationalising via e-commerce, the scope of the DTDi scheme will be enhanced to include a new qualifying activity “e-commerce campaign” and cover the following e-commerce campaign startup expenses paid to e-commerce platform/service providers:

a) Business advisory: Advisory on market promotion and execution plans (e.g. choice of suitable e-commerce platforms);

b) Account creation: Assistance with setting up accounts on e-commerce platforms, and the right to sell on e-commerce platforms;

c) Content creation: Design of e-commerce campaign publicity materials (e.g. e-store banners, online product images); and

d) Product listing and placement: Uploading content on products/services to ecommerce platforms, and selection of suitable frequency and timing to display content on products/services. Prior approval is required from EnterpriseSG to enjoy DTDi on the new qualifying activity. For each business, EnterpriseSG will only approve DTDi support for e-commerce campaigns for a maximum period of one year applied on a per country basis. The above enhancement will take effect for qualifying e-commerce campaign startup expenses incurred on or after 15 February 2023.

EnterpriseSG will provide further details of the changes by 28 February 2023.

Option to Accelerate the Write-off of the Cost of Acquiring Plant and Machinery (P&M)

Existing Tax Treatment

Businesses that incur capital expenditure on the acquisition of P&M may claim capital allowance (CA) under section 19 (i.e. write-off over the working life of the assets as specified in the Sixth Schedule) or section 19A (i.e. write-off over one or three years) of the ITA.

New Tax Treatment

To provide temporary broad-based support to businesses during this period of restructuring, businesses that incur capital expenditure on the acquisition of P&M in the basis period for YA2024 (i.e. financial year ending in 2023) will have an option to accelerate the write-off of the cost of acquiring such P&M over two years. This option, if exercised, is irrevocable.

The rates of accelerated CA allowed are as follows:

a) 75% of the cost incurred to be written off in the first year (i.e. YA2024); and

b) 25% of the cost incurred to be written-off in the second year (i.e. YA2025). The above option will be in addition to the options
currently available under sections 19 and 19A of
the ITA. No deferment of CA claims is allowed under the
above option. This means that if a business opts for the accelerated write-off option, it needs to claim the capital expenditure incurred for acquiring P&M based on the rates of 75% (in YA2024) and 25% (in YA2025) over the two
consecutive YAs.

Provide Option to Accelerate Deduction for Renovation or Refurbishment (R&R) Expenditure

Existing Tax Treatment

Under section 14N of the ITA, businesses that incur qualifying expenditure on R&R may claim tax deduction on such expenditure over three consecutive YAs on a straight-line basis, starting from the YA relating to the basis period in which the R&R expenditure is incurred. A cap of $300,000 for every relevant period of the three consecutive YAs applies. 

New Tax Treatment

To provide temporary broad-based support to businesses during this period of restructuring, businesses that incur qualifying expenditure on R&R during the basis period for YA2024 (i.e. financial year ending in 2023) will have an option to claim R&R deduction in one YA (i.e. accelerated R&R deduction). The cap of $300,000 for every relevant period of three
consecutive YAs will still apply. This option, if exercised, is irrevocable.

This option will be in addition to the existing option currently available under section 14N of the ITA. 

Extend Investment Allowance (IA) Scheme

Existing Tax Treatment

The IA scheme provides an additional tax allowance for businesses which incur qualifying fixed capital
expenditure on approved projects. This is calculated as a percentage of the amount of capital expenditure incurred, net of grants, on an approved project. 

The IA scheme, which is administered by the Singapore Economic Development Board, Building and Construction Authority, and EnterpriseSG, is scheduled to lapse after 31 December 2023.

New Tax Treatment

To continue encouraging businesses to make capital investments in plant and productive equipment in Singapore, the IA scheme will be extended till 31 December 2028.

Extend IA-100% Scheme for Automation Projects

Existing Tax Treatment

Businesses can enjoy 100% IA support on the amount of approved capital expenditure, net of grants, for automation projects approved by EnterpriseSG.

The IA-100% scheme is scheduled to lapse after 31 March 2023.

New Tax Treatment

To continue to encourage businesses to transform
through automation, the IA-100% scheme will be extended till 31 March 2026, with the same parameters.

Extend Pioneer Certificate Incentive (PC) and Development and Expansion Incentive (DEI)

Existing Tax Treatment

Both the PC and DEI aim to encourage companies to grow capabilities, conduct new or expanded economic activities, and establish their global or regional headquarters in Singapore.

a) Under the PC, recipients are eligible for corporate tax exemption on income from qualifying activities.

b) Under the DEI, recipients are eligible for concessionary tax rates of 5% or 10% on qualifying income.

The PC and DEI are scheduled to lapse after 31 December 2023.

New Tax Treatment

To continue encouraging companies to anchor and grow strategic high value-added manufacturing and services activities in Singapore, the PC and DEI will be extended till 31 December 2028.

Extend the IP Development Incentive (IDI)

Existing Tax Treatment

The IDI aims to support companies that use and
commercialise IP rights arising from R&D in Singapore. Under IDI, recipients are eligible for concessionary tax rates of 5% or 10% on a percentage of qualifying IP income.

The IDI is scheduled to lapse after 31 December 2023.

New Tax Treatment

To continue supporting the use and commercialisation of IP rights arising from R&D activities in Singapore, the IDI will be extended till 31 December 2028.

Extend and Refine Qualifying Debt Securities (QDS) Scheme

Existing Tax Treatment

The QDS scheme offers the following tax concessions on qualifying income from QDS:

a) 10% concessionary tax rate for qualifying companies and bodies of persons in Singapore;
and

b) Tax exemption for qualifying non-residents and qualifying individuals. To qualify as QDS, debt securities must be substantially arranged in Singapore as follows:

a) All debt securities must be substantially arranged by a financial sector incentive (capital
market) company or a financial sector incentive (standard tier) company (collectively referred to as “FSI company”); and

b) For insurance-linked securities (ILS)6 that are unable to meet the condition in (a) above, at least 20% of the ILS issuance costs incurred by the issuer is paid to Singapore businesses.

The QDS scheme is scheduled to lapse after 31 December 2023.

New Tax Treatment

To continue supporting the development of Singapore’s debt market, the QDS scheme will be extended till 31 December 2028.

The scope of qualifying income under the QDS scheme will be streamlined and clarified such that it includes all payments in relation to early redemption of a QDS. To ensure continued relevance, the requirement
that the QDS has to be substantially arranged in Singapore will be rationalised, as follows:

a) For all debt securities that are issued on or after 15 February 2023, they must be substantially arranged in Singapore by a
financial institution holding a specified licence (instead of a FSI company).

b) For ILS that are issued on or after 1 January 2024, if they are unable to meet the condition in (a) above, at least 30% of the ILS issuance costs incurred by the issuer must be paid to Singapore businesses.

All other conditions of the scheme remain the same. The Monetary Authority of Singapore (MAS) will provide further details by 31 May 2023. 

Extend Tax Exemption on Income Derived by Primary Dealers from Trading in Singapore Government Securities(SGS)

Existing Tax Treatment

Tax exemption is granted on income derived by primary
dealers from trading in SGS.

The tax exemption is scheduled to lapse after 31 December 2023.

New Tax Treatment

To continue supporting primary dealers and encourage trading in SGS, the tax exemption on income derived by primary dealers from trading in SGS will be extended till 31 December 2028.

All other conditions of the scheme remain the same.

Extend and Refine Tax Incentive Scheme for Approved Special Purpose Vehicle (ASPV) Engaged in Asset Securitisation Transactions (ASPV scheme) and Introduce a New Sub-scheme to Support Covered Bonds

Existing Tax Treatment

The ASPV scheme grants the following tax concessions to an ASPV engaged in asset securitisation transactions:

a) Tax exemption on income derived by an ASPV from asset securitisation transactions;

b) Goods and Services Tax (GST) recovery on its qualifying business expenses at a fixed rate of 76%; and

c) Withholding tax (WHT) exemption on payments to qualifying non-residents on over-the-counter financial derivatives in connection with an asset securitisation transaction. 

The ASPV scheme is scheduled to lapse after 31 December 2023.

New Tax Treatment

To continue developing the structured debt market, the ASPV scheme will be extended till 31 December 2028.
Instead of a fixed rate of 76%, the GST recovery rate will be the prevailing GST recovery
rate/methodology accorded to licensed full banks under MAS for the specific year in question.

All other tax concessions and conditions of the ASPV scheme remain the same. Further, to support the issuance of covered bonds in Singapore, a new sub-scheme named ASPV (Covered Bonds) will be introduced for the special purpose vehicle holding the “cover pool” in relation to the covered bonds as defined in MAS Notice 648. 

The ASPV (Covered Bonds) scheme will take effect from 15 February 2023 to 31 December 2028 and will be administered by MAS. 

MAS will provide further details by 31 May 2023. 

Extend and Refine the Financial Sector Incentive (FSI) Scheme

Existing Tax Treatment

The FSI scheme accords concessionary tax rates of 5%, 10%, 12% and 13.5% on income from qualifying banking and financial activities, headquarters and corporate services, fund managing and investment advisory services.

The FSI scheme is scheduled to lapse after 31 December 2023.

New Tax Treatment

To continue supporting the growth of financial sector activities in Singapore, the FSI scheme will be extended and refined as follows:

a) The FSI scheme will be extended till 31 December 2028.

b) The existing concessionary tax rates will be streamlined to two tiers of 10% and 13.5% for new and renewal awards approved on or after 1 January 2024, as follows:

i) FSI-Capital Market, FSIDerivatives Market and FSICredit Facilities Syndication – from 5% to 10%;

ii) FSI-Fund Management and FSIHeadquarter Services –remain at 10%;

iii) FSI-Trustee Companies – from 12% to 13.5%; and

iv) FSI-Standard Tier – remain at 13.5%.

c) The qualifying activities will be updated to ensure continued relevance.

MAS will provide further details of the changes by 31 May 2023.

Extend Insurance Business Development – Insurance Broking Business (IBD-IBB) Scheme

Existing Tax Treatment

The IBD-IBB scheme grants approved insurance and
reinsurance brokers a concessionary tax rate of 10% on commission and fee income derived from insurance
broking and advisory services.

The IBD-IBB scheme is scheduled to lapse after 31 December 2023.

New Tax Treatment

To further strengthen Singapore’s position as a leading insurance and reinsurance centre, the IBD-IBB scheme will be extended till 31 December 2028.

All other conditions of the scheme remain the same.

Extend Tax Concession for Deduction of General Provisions for Doubtful Debts and Regulatory Loss Allowances Made in Respect of Non-credit impaired Financial Instruments for Banks (Including Merchant Banks) and Qualifying Finance Companies

Existing Tax Treatment

Under section 14G of the ITA, banks, merchant banks
and qualifying finance companies can claim a tax deduction for general provisions on non-credit impaired loans and debt securities made under the Financial Reporting Standard 109 or Singapore Financial Reporting Standard (International) 9, and any additional loss allowances as required under prevailing
MAS Notices, subject to a cap. The tax deduction under section 14G is scheduled to lapse after YA2024 (for banks, merchant banks and qualifying finance companies with a 31-December financial year end (FYE)) or YA2025 (for banks, merchant banks and qualifying finance companies with a non-31-December FYE).

New Tax Treatment

To continue to promote the overall robustness and stability of the Singapore financial system, the tax deduction under section 14G of the ITA will be extended till YA2029 (for banks, merchant banks, and qualifying finance companies with a 31-December FYE) or YA2030 (for banks, merchant banks, and qualifying finance companies with a non-31-December FYE).

Extend Three Tax Measures Relating to Submarine Cable Systems

Existing Tax Treatment

Currently, there are three tax measures relating to submarine cable systems:

a) WHT exemption on payments made to non-residents for use of international telecommunications submarine cable capacity under indefeasible right to use (IRU) agreements. This is scheduled to lapse after 31 December 2023. 

b) WDA for the acquisition of an IRU over their useful life. This is scheduled to lapse after 31 December 2025. 

c) IA for the construction and operation of submarine cable systems in Singapore. 

This is scheduled to lapse after 31 December 2023.  

New Tax Treatment

To maintain and enhance Singapore’s international connectivity, all three tax measures will be extended till 31 December 2028, with the same parameters.

Withdraw Tax Deduction for Expenditure Incurred on Building Modifications for Benefit of Disabled Employees

Existing Tax Treatment

Under section 14F of the ITA, employers can claim tax deductions for approved expenditure incurred on any addition or alteration to business premises for the purpose of facilitating the mobility or work of any disabled employee, subject to a one-off cap of $100,000.

New Tax Treatment

The scheme will be withdrawn from 15 February 2023. 

Introduced in Budget 1989, the scheme has become less relevant over the years. Since then, other support schemes (e.g. the Open Door Programme Job Redesign Grant) have been introduced to help employers recruit and retain disabled employees, or to support employers for accommodations beyond (and including) physical modifications of the workplace. Section 14N on tax deductions for Renovation and Refurbishment, introduced in Budget 2008, can also be tapped upon for workplace modifications without the need for prior approval from government agencies.

Buyer's Stamp Duty and Additional Conveyance Duties for Buyers

Existing Tax Treatment

Currently, transactions in residential and non-residential properties are subject to marginal BSD rates of 1% to 4% and 1% to 3% respectively:

New Tax Treatment

To enhance the progressivity of our BSD regime, higher marginal BSD rates will be introduced for higher-value residential and non-residential properties.

For residential properties, a new marginal BSD rate of:

a) 5% will apply to the portion of the property value in excess of $1.5 million and up to $3 million; 

and

b) 6% will apply to the portion of the property
value in excess of $3 million.

For non-residential properties, a new marginal BSD rate of:

a) 4% will apply to the portion of the property value in excess of $1 million and up to $1.5
million; 

and

b) 5% will apply to the portion of the property value in excess of $1.5 million.

The revised rates will apply to all properties acquired on or after 15 February 2023.

Tobacco Excise Duty

To discourage the consumption of tobacco products, we will raise the excise duties by 15% across all tobacco products. These tax changes will take effect on and after 14 February 2023:

(A) Cigars, Cheroots, Cigarillos and Cigarettes, and Other Manufactured Tobacco:

From $427/kgm or 42.7 cents/stick of cigarette to $491/kgm or 49.1 cents/stick of cigarette.

(B) Beedies, Ang Hoon, and Other Smokeless Tobacco: 

From $329/kgm to $378/kgm.

(C) Unmanufactured and Cut Tobacco and Other Tobacco Refuse: From $388/kgm to $446/kgm.

Vehicular Tax Changes

(A) Additional Registration Fee Changes

To make our vehicular tax structure more progressive, the following changes will be made to the Additional Registration Fee (ARF) payable for cars, taxis, and goods-cum-passenger vehicles (GPVs):

The new ARF structure will apply to all new and imported used cars and GPVs registered with Certificate of Entitlements (COEs) obtained from the second bidding exercise in February 2023 onwards. The second COE bidding exercise in February 2023 will take place from 20 to 22 February 2023. 

For cars that do not need to bid for COEs (e.g. taxis, classic cars), the new ARF structure will apply for those registered on or after 15 February 2023.

(B) Preferential Additional Registration Fee Rebate Changes

To make our vehicular tax system more progressive, PARF rebates will be capped at $60,000. For example, a vehicle with an OMV of $90,000 paying an ARF of $168,000 under the new rates would receive $60,000 in PARF rebates, instead of $84,000, if it is deregistered when it is nine years old. For cars that need to bid for COEs, the PARF cap will apply to those that are registered with COEs obtained from the second bidding exercise in February 2023 onwards and are subsequently deregistered within their PARF eligibility period. For cars that do not need to bid for COEs (e.g. taxis), the PARF cap will apply to those that are registered on or after 15 February 2023 and are subsequently deregistered within the PARF eligibility period. The PARF cap does not apply to vehicles that are not eligible for PARF rebates, such as GPVs, classic cars, and vehicles that have been laid-up.
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Enhanced JSS Support from 25 Oct to 21 Nov 2021

From 25 October to 21 November 2021 onwards, the Government will provide enhanced JSS support for the following sectors:

The enhanced payout corresponding to wages paid for Aug to Oct 2021 will be disbursed in December 2021. Employers who put local employees on mandatory no-pay leave (NPL) or retrench them will not be entitled to the enhanced JSS payouts for those employees.

If your company has an existing GIRO arrangement with IRAS or is registered for PayNow Corporate as at 24 Sep 2021, you will receive a payout titled “Jobs Support Scheme” (GIRO) or “GOVT” (PayNow Corporate) in your bank account from 30 Sep 2021. Other employers will receive their cheques from 15 Oct 2021 mailed to their registered business address.

As part of the checks for JSS eligibility, a small number of employers will receive letters from IRAS asking them to conduct a self-review of their CPF contributions and to provide declarations or documents to substantiate their eligibility for JSS payouts. Their Sep 2021 payout will be withheld pending the self-review and verifications by IRAS. The payout will only be disbursed after the completion of the review. If your company has been selected for self-review, please refer to Self-review for Eligibility of JSS and JGI for more information.

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Refresh Progressive Wage Approach and Coverage

From 25 October to 21 November 2021 onwards, the Government will provide enhanced JSS support for the following sectors:

The enhanced payout corresponding to wages paid for  Aug to Oct 2021 will be disbursed in December 2021. Employers who put local employees on mandatory no-pay leave (NPL) or retrench them will not be entitled to the enhanced JSS payouts for those employees.

If your company has an existing GIRO arrangement with IRAS or is registered for PayNow Corporate as at 24 Sep 2021, you will receive a payout titled “Jobs Support Scheme” (GIRO) or “GOVT” (PayNow Corporate) in your bank account from 30 Sep 2021. Other employers will receive their cheques from 15 Oct 2021 mailed to their registered business address.

As part of the checks for JSS eligibility, a small number of employers will receive letters from IRAS asking them to conduct a self-review of their CPF contributions and to provide declarations or documents to substantiate their eligibility for JSS payouts. Their Sep 2021 payout will be withheld pending the self-review and verifications by IRAS. The payout will only be disbursed after the completion of the review. If your company has been selected for self-review, please refer to Self-review for Eligibility of JSS and JGI for more information.

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Covid-19 Relief for Construction Firms Facing Higher Foreign Manpower Cost

Construction firms here will soon be able to seek relief for higher foreign manpower costs from their contract partners if their workers’ salaries have been affected as a result of Covid-19-related measures.

This will be done through an amendment to the Covid-19 (Temporary Measures) Act Bill that was introduced in Parliament on Monday (May 10).

Under the amended law, affected contractors, including sub-contractors, may apply to the authorities for an assessor to adjust the contract sum to take into account an increase in foreign manpower salary incurred between Oct 1 last year and Sept 30 this year due to reasons relating to Covid-19.

Part 10A of he Covid-19(Temporary Measures) Act has come into operation on 6 August 2021. Part 10A provides a framework for parties to construction contracts to apply for relief from their contractual counterparties if they are affected by an increase in cost of work permit holders due to the Covid-19 events such as border control quotas set by Government limiting the inflow of foreign workers.

Part 10A Critieria

COTMA Part 10A (which commenced on 06 August 2021) allows contractors in eligible contracts to apply to an independent Assessor. The Assessor has the power to adjust the contract sum of eligible construction contracts taken into consideration of the increase in foreign manpower salary cost incurred anytime during the period from 01 October 2020 to 30 September 2021 (both dates inclusive). 

Criteria:

  • Construction contracts entered before 1 October 2020
  • Contract must not have been terminated(or notice of termination given) before 10 May 2021
  • Construction works under the contract must not have be certified as completed as at 10 May 2021

Contractors must show proof of reasonable attempts to negotiate with their clients before they can apply to an Assessor. 

Part 10A Application Procedure

Party A must first apply to the Registrar for the Appointment of an Assessor.

  • The prescribed application period is from 6 August 2021 to 14 October 2021
  • The application must be made via Form A

Response from Registrar

If the Registrar is satisfied with the application, he/she will end to Party A the following:

  • An acknowledgement of receipt of the application; and
  • A response to the application via Form D or the electronic location at which the Form D may be obtained.

Notifying respondents

Party A must serve a copy of the application and the Registrar Response to the following parties within two working days after the date Party A receives the response

  • Party B and any other party to the contract, and any assignee thereof; and
  • Any person who is Party A’s guarantor or surety, or who has issued any performance bond or equivalent.

Party A must then, within two working days after the service of the copy of the application and the Registrar Response to the above parties, submit to the Registrar a declaration in Form C of such service.

Application fee

Once the relevant parties have been notified and the Form C declaration has been submitted, the Registrar will inform Party A of the application fee and the payment procedure. The application fee is based on the increase in the amount of foreign manpower salary costs incurred (the amount of foreign manpower salary costs incurred because of a COVID-19 event minus the amount of foreign manpower salary costs that would have been incurred in a circumstance without COVID-19

Refer to this table to ascertain the fee payable for an application.

Once the prescribed application fee is paid the Registrar will send a notice of the appointment of an Assessor to Party A and inform the date and place for the hearing if applicable.

Response from respondents

If Party B wishes to contest an application, they must submit to the Registrar a response to the application via Form D no later than five working days after being serve the copy of the application and the Registrar Response by Party A.

The response must also be served on:

  • Party A and any other party to the contract, an d any assignee thereof; and
  • Any person who is Party A’s guarantor or surety, or who has issued any performance bond or equivalent.

Assessor’s determination

The Assessor will them determine whether:

  • Part 10A is applicable to the case;
  • Party A had made a reasonable attempt to negotiate with Party B;
  • There has been an increase in the amount of eligible foreign manpower salary costs;
  • It is just and equitable in the circumstances to adjust the contract sum; and
  • The quantum of the adjusted amount.

Other Forms (only to be submitted when applicable):

Form B – Withdrawal of Application for Determination

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Bigger $50,000 Start-Up Grant for First Time Entrepreneurs

On 17 August 2020, Deputy Prime Minister Heng Swee Keat announced during his Ministerial Speech that S$150 million has been set aside for the enhancement of the Startup SG Founder scheme.

First-time entrepreneurs will be able to access a higher start-up capital grant of S$50,000, up from $30,000, to help them launch their business ideas. In addition to the increase in the start-up grant, a three-month venture building programme has also been introduced to help start-ups get their innovative ideas off the ground.

The reason for the enhancement of the scheme is to spur new development and new growth opportunities. Besides new innovations and solving real world problems, start-ups also help to create more and new types of job opportunities for Singaporeans. By enhancing the Startup SG Founder programme, the government hopes to enable more aspiring entrepreneurs to start new ventures and accelerate the formation of innovative startups in Singapore.

Startup SG Founder "Train" Track

Under the “Train” track scheme, Enterprise Singapore has appointed Venture Builder and Accredited Mentor Partners (‘VB-AMPs’) with strong track records of venture building to provide 3-month Venture Building (VB) programmes to Singaporeans. The programme will provide support for sourcing innovation, commercialising these ideas into scalable businesses, getting product/solution validation from customers and finding capital.

Eligibility

To be eligible for this track, applicants must fulfil the following criteria:
i. Singaporean Citizen or Permanent Resident;
ii. Commit to 100% attendance for the Venture Building Programme;
iii. Commit to running a startup full time after the programme.

They will also need to pass the VB-AMPs’ screening criteria, which is not limited to:
aptitude, expertise, background and related experience.

The table below summarises the eligibilities of different categories of individuals. The
list below is non-exhaustive, and subject to changes by ESG. Categories of individuals
not listed below will be assessed for eligibility on a case-by-case basis by ESG.

CategoryEligibility for the VB ProgrammeEligibility for Stipends
Applicants who are full time employed, part-time employed, self-employed or freelancing
1Applicants who are currently in part-time or full-time employmentNo, unless applicants are willing to tender the resignations before enrolling into the programme.
If programme-eligible applicants are still serving notice during the
programme, pro-rated stipends will be provided after the notice period ends
2FreelancersYes, provided applicant can be full time committed to the Venture Building
Programme		Yes
3Self employed i. If the business is registered as a sole proprietor, the treatment for freelancers (case #2) will apply.
ii. For all other business entities, the treatment will follow that of case #5.
Former / current startup founders
4Applicants who have previously incorporated a business entity on ACRA (ie. Pte Ltd / LLC / any other business entities), which was nonrevenue generating and is no longer active YesYes
5Applicants with a business entity that is active and live on ACRA, registered as Pte Ltd / LLC / any other business entities, excluding sole proprietorshipNo. If your business entity is a startup, you may wish to apply for the Startup SG Founder grant, provided you meet the eligibility criteria.No
6Applicants who have been awarded the Startup SG Founder grantNoNo
Students
7Applicants who are currently in full time studiesOnly students in their final year of studies are eligible for the programme. However, if you currently hold a job, you will not be eligible, as per treatment of case #1.No
8Applicants who are currently in part time studiesYes, if you can be full time committed to the Venture Building programme.Yes
9Applicants who are still studying and on scholarship that requires them to
serve a bond after graduation		NoNo
Others
10Applicants who have attended any SGUnited Traineeship or SGUnited Skills ProgrammesNoNo
11Applicants who have previously joined other Venture Building programmes (incl. commercial VB programmes)NoNo

Startup SG Founder "Start" Track

Under the “Start” track scheme, teams of entrepreneurs with innovative business ideas can approach any Enterprise Singapore-appointed Accredited Mentor Partners (AMP) with their innovative business ideas. The AMPs will identify and recommend qualifying applicants for funding support based on the uniqueness of business concept, feasibility of business model, strength of management team, and potential market value. Upon successful application, the AMP will assist the startups with advice, learning programs and networking contacts. Enterprise Singapore will also provide the startups with a startup capital grant of $50,000. Startups are required to raise and commit S$10,000 as co-matching fund to the grant.

Eligibility

Applicants will need to reach out to an Accredited Mentor Partners (AMP) of choice and submit their pitch deck for the AMP’s consideration. AMP will assess applicants based on (but not limited to) the following criteria: 

  • Differentiated business – how novel the idea/product/service/business model/process is compared to what is available in the market
  • Feasibility of the business – whether the revenue model is sustainable
  • Potential market opportunity – how large the size of the target market is, and how the company intends to reach out to its customer segments
  • Management team – whether the founding team demonstrate passion and entrepreneurial spirit, and have the relevant technical and business skills to execute the idea.

If the AMP assesses that the applicant has met the eligibility and evaluation criteria, they will provide a letter of recommendation to the applicant. Applicants must then attach this letter in an online application form to be submitted to Enterprise Singapore within 2 weeks from the receipt of the letter of recommendation. Enterprise Singapore will inform the applicant and AMP on the application status for the grant.

The grant is open to all Singaporeans/Permanent Residents who meet the following conditions at the time of application:

  • The team has at least 3 SC/PRs, who are the main applicants of the grant;
  • At least 2 of the 3 main applicants are first-time founders;
  • The main applicants who are first-time founders must hold a minimum of 30% equity in the company collectively;
  • The company must have a minimum 51% SC/PR shareholdings;
  • The company must not be more than 6 months of incorporation at the point of application to the AMP;
  • The 3 main applicants must contribute meaningfully to the company, and not be employed by another employer;
  • At least 2 of the 3 main applicants should be committed full time to the company, and must be key decision makers of the company;
  • The main applicant(s) must not have received any funding for the proposed business idea from another government organization;
  • The proposed business idea must not be in the following list: cafes, restaurants, night clubs, lounges, bars, foot reflexology, massage parlours, gambling, prostitution, social escort services, employment agencies (including recruiting foreign work permit holders and workers/support staff, relocation services, and manpower services), and geomancy.
Click here to submit your pitch deck to an AMP, and if you have received a Letter of Recommendation from an AMP, you may submit an application to ESG here.

FAQs

When will the enhancements to the Startup SG Founder grant take effect?

The enhancements will take effect on 25 Sep 2020. Any applications received by ESG prior to this date will follow the current Startup SG Founder grant conditions, which include:
i. Grant amount of $30,000 over a 12-month period
ii. Co-matching ratio of 1:3 (ie. Founder(s) must raise $10,000 in capital)
iii. Only one main applicant required
Any applications received by ESG from 25 Sep 2020 onwards will follow the new Startup SG Founder grant conditions, (refer to Para 2.ii). Some key conditions include:
i. Increased grant amount of $50,000 over a 12-month period
ii. Reduced co-matching ratio of 1:5 (ie. co-investment of $10,000 required)
iii. Minimum 3 SC/PR employees (including the founder), two of whom must be first-time founders.

How will the grant be disbursed?

If the AMP wishes to recommend the application, the AMP will decide on appropriate milestones together with the applicant(s). The AMP’s recommended application and milestones will then be surfaced to ESG for vetting and approval. The grant will be disbursed in 2 tranches based on agreed project milestones. You will have up to 12 months from the date of letter of offer to meet the milestones to draw down on the grant.

Is the Startup SG Founder enhancement intended to be a one-off? Or will the S$150 million support startups with further enhancements in the future?

ESG continuously reviews all our programmes including the Startup SG Founder and its appointed AMPs. Any further enhancements will be subject to a review in FY2021. In addition, there are various forms of Startup SG support catered to different stages of startups, e.g. Startup SG Equity and Startup SG Tech schemes. The National Innovation Challenges were also recently launched to spur demand from companies and government agencies for innovative solutions by startups.

Some may consider joining a startup or pursuing entrepreneurship at this point in time as something fraught with risk. Why does ESG encourage individuals to pursue such pathways at this time?

Pursuing entrepreneurship in this time is challenging. But the Government is providing various forms of support to mitigate this risk.

a. The enhancement of Startup SG Founder programme is example. Startups under our Startup SG Founder scheme are closely supported and mentored by ESGappointed AMPs, who provide useful resources, coaching and networks for startups and entrepreneurs to tap on. There is also significant support from government effort and community-led initiatives to help the local startup ecosystem, to mitigate risks in pursuing entrepreneurship during this time.

b. In June 2020, the Special Situation Fund of S$285 million was launched to support promising startups with strong growth potential to continue with innovation and product development in Singapore.

c. The Startup SG Equity scheme was enhanced earlier this year with an additional S$300 million to catalyse more investments into Singapore-based deep-tech startups. Both are done through co-investments with the private sector. Several ecosystem partners have also stepped up to provide mentorship virtually to startups on a pro bono basis. For example, community builders AngelCentral and Found8 launched online sites that list tips and advisories for any startups during this tough time. VCs such as Antler also launched a call to invest in early-stage startups with solutions to tackle COVID-19. It will invest up to US$500,000 by this year in such startups, with the aim to generate more innovative solutions from startups to solve immediate challenges relating to the current pandemic crisis.

With the introduction of the “Train” track, does that mean that startup who wish to apply for the Startup SG Founder must attend the Venture Building programme first?

No. Startup founders who have ready business plans and do not require entrepreneurial training can continue to apply to any existing AMPs to be considered for the Startup SG Founder grant. The introduction of the “Train” track merely offers more support for entrepreneurs who wish to get training and advices for market validation of their business ideas before launching their startups.

Can I request for a face-to-face consultation? How do I set up a business? Who can help me?

If you would like to explore the various support available for startups, you may find it helpful to check out the Startup SG website (www.startupsg.gov.sg) or to make an appointment with one of the SME centres (https://partnersengage.enterprisesg.gov.sg/book-appointment). The business advisors will advise you more on the appropriate schemes and assistance for your business. ESG is unable to vet through or give comments on the business proposal, as ESG can only evaluate grant applications submitted in accordance to the stated requirements of the programme.

Click here for more Startup SG Founder FAQ.

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Enhancements to Grants and Loan Scheme

In the Ministerial Statement made by DPM Heng Swee Keat on Mon, 5 Oct 2020, he stated that there will be an extended and enhanced support for firms and workers.

Companies looking to grow their businesses, increase productivity or expand overseas will soon be able to tap bigger grants and expanded loan schemes. These moves will provide more support for businesses during the Covid-19 pandemic and help them to transform, Trade and Industry Minister Chan Chun Sing said as he announced the enhancements to several grant and loan schemes on Monday, Oct 12.

Market Readiness Assistance Grant

This grant provides Small and Medium Enterprises (SMEs) with financial assistance to help take your business overseas. You will be rewarded a maximum of 2 MRA grants for each fiscal year. To be eligible for this grant, you need to:

  • Be registered or incorporated in Singapore; 
  • Have at least 30% local shareholder;
  • Have a group annual turnover not exceeding S$100 million per year based on most recent audit report or group employment not exceeding 200 employees.

Current Support Level

Up to 70 per cent of qualifying costs, including identifying business partners and setting up overseas.

New Support Level

Up to 80 per cent of qualifying costs from 1 Nov 2020 to 30 Sept 2021. Will also cover participation in virtual trade fairs from 1 Nov 2020. 

Enterprise Development Grant

The Enterprise Development Grant helps Singapore companies grow and transform. This grant funds qualifying project costs namely third party consultancy fees, software and equipment, and internal manpower cost. To qualify for this grant, you need to:

  • Be a business entity registered and operating in Singapore
  • Have a minimum of 30% local shareholding
  • Be in a financially viable position to start and complete the project

Current Support Level

Up to 80 per cent of qualifying costs until 31 Dec 2020.

New Support Level

Higher support of up to 80 per cent extended by nine months to 30 Sept 2021, after which it will revert to up to 70 per cent.

Productivity Solutions Grant

The Productivity Solutions Grant (PSG) supports companies keen on adopting IT solutions and equipment to enhance business processes.

For a start, PSG covers sector-specific solutions including the retail, food, logistics, precision engineering, construction and landscaping industries. Other than sector-specific solutions, PSG also supports adoption of solutions that cut across industries, such as in areas of customer management, data analytics, financial management and inventory tracking.

To help enterprise implement COVID-19 business continuity measures, the scope of generic solutions has expanded to include:

  • Online collaboration tools (including laptop-bundled remote working solutions); 
  • Virtual meeting and telephony tools;
  • Queue management systems;
  • Temperature screening solutions

SMEs can apply for PSG if they meet the following criteria:

  • Registered and operating in Singapore
  • Purchase/lease/subscription of the IT solutions of equipment must be used in Singapore
  • Have a minimum of 30% local shareholding; with Company’s group annual sales turnover less than S$100 million, OR less than 200 employers (selected solutions only)

Current Support Level

Up to 80 per cent of qualifying costs until 31 Dec 2020.

New Support Level

Higher support of up to 80 per cent extended by nine months to 30 Sept 2021, after which it will revert to up to 70 per cent.

Temporary Bridging Loan Programme

The Temporary Bridging Loan Programme (TBLP) allows eligible enterprises to borrow up to S$5 million, with a repayment period of up to 5 years.

Under the scheme, interest rates charged by Participating Financial Institutions (PFIs) are capped at a maximum interest rate of 5% per annum. 

To be eligible for TBLP, you need to:

  • Be a business entity that is registered and physically present in Singapore;
  • At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership

Current Support Level

Loans of up to $5 million, with up to 90 per cent risk-sharing by the Government until 31 March 2021.

New Support Level

Loans of up to $3 million, with up to 70 per cent risk-sharing by the Government from 1 April to 30 Sept 2021.

Enterprise Financing Scheme - Project Loan

This programme helps enterprises finance the fulfillment of secured overseas projects.

The supportable loan types include:

  • Working Capital and Trade Loans
  • Equipment/ Machineries/ Vessels/ Other fixed assets
  • Guarantees

To be eligible for this loan, you are:

  • A Singaporean SME looking to finance the fulfilment of secured overseas projects.

You need to:

  • Be a business entity that is registered and physically present in Singapore.
  • Have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership,
  • Have a Maximum Borrower Group revenue cap of S$500 million for all companies…

Current Support Level

Loans of up to $50 million for secured overseas projects, with at least 50 per cent risk-sharing by the Government.

New Support Level

Expanded to allow construction companies to take up loans of up to $30 million for secured domestic projects, with at least 50 per cent risk-sharing by the Government, starting from 1 Jan 2021.

Enterprise Financing Scheme - Trade Loan

Finance trade needs, including:

  • Inventory / stock financing
  • Structures pre-delivery working capital (revolving working capital)
  • Factoring (with recourse) /bill of  invoice/ AR discounting 
  • Overseas working capital loan
  • Bank Guarantee (capped at 2 years tenure)

Eligibility:

  • Be a business entity that is registered and physically present in Singapore, and
  • At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership, and
  • Have Group Annual Sales Turnover of not more than S$500 million

Current Support Level

Loans of up to $10 million, with up to 90 per cent risk-sharing by the Government until 31 March 2021.

New Support Level

Loans of up to $10 million, with up to 70 per cent risk-sharing by the Government from 1 April to 30 Sept 2021.

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Ministerial Statement – Support for Firms and Workers

Enhanced Training Support Package (ETSP)

The government will extend the Enhanced Training Support Package (ETSP) which was enhanced in the Resilience Budget, for another six months, until 30 June 2021 to provide enhanced course fee subsidies for firms in our hardest-hit sectors. DPM Heng also said that he will extend the ETSP to the Marine and Offshore sector from 5 Oct 2020, on top of the existing sectors such as Air Transport, Retail, and Tourism. In recognition of the gradually recovering economic situation, we will also be lowering the absentee payroll rates to 80% from January 2021, capped at $7.50 per hour.

Providing Strong Support for Firms

In tandem, the government will continue to provide strong support to firms that are growing by:

  • Enhanced support for startups, via the Startup SG Founder programme. Since the announcement of the enhancements in August, more than 500 aspiring entrepreneurs have signed up for the 3-month Venture Building programmes.
  • Provide wage support of between 25% and 50% for each new local hire in firms which increase their total local headcount, through the Jobs Growth Incentive (JGI). The support will be for the first $5,000 of gross monthly wages for up to 12 months.

Jobs Growth Incentive

As persons with disabilities may face greater challenges in finding jobs, the government will provide the higher tier of wage support of 50% under the JGI to all Persons with Disabilities. 

This will apply to new hires of Persons with Disabilities from September 2020 to February 2021.

Boosting Businesses

To give a boost to businesses seeking to internationalise, transform and digitalise, there will be an extension or enhancement to the capability-building grants:

  • Market Readiness Assistance Grant, 
  • Productivity Solutions Grant, 
  • Enterprise Development Grant, and 
  • PACT programme. 

These will enable firms to tap on new sources of growth. MTI will announce details in the coming weeks.

Enhanced Support Through Loan Schemes

  • To provide working capital to support viable businesses, the Temporary Bridging Loan Programme will be extended for another six months, until September 2021, at reduced levels.
  • MAS will also extend the MAS Singapore Dollar Facility for Enterprise Singapore Loan, until September 2021.
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Updates on Rental Relief Framework

Expanded Powers for Rental Relief Assessors

Under the rental relief framework, a landlord who is unable to reach an agreement with is tenant may apply to have an independent rental relief ascertain:

a) The tenant’s eligibility for rental waivers (either the portion supported by Government assistance, and/or the portion borne by the landlord)

b) The landlord’s eligibility to provide a reduced amount of rental waivers, on the basis of financial hardship

The amendments to the Act proposed on September 3, will expand the powers of rental relief assessors so that they can make determinations on unresolved disputes relating to the amount of rent to be waived under the framework, where the amount is affected by any of the following factors:

a) The amount of maintenance and service charges, especially where such charges are not explicitly listed in the lease or license agreement

b) The amount that can be offset by assistance provided by the landlord earlier

c) The tenant is occupying the property for only a part of the relief period

d) There are multiple-sub tenants in the same property 

Clarifying Interaction Between Part 8 and Other Dispute Resolution Proceedings

The amendment Bill will also clarify the existing Part 8 of the Act – not yet in force – that allows parties of some contracts to get relief if they are affected by breaches or delays in construction, supply or related contracts.

It will specify that no application for relief for such contracts can be filed if court, arbitral or Building and Construction Industry Security of Payment Act (Sopa) proceedings related to the application have already started.

Conversely, once an application for relief ha been filed, the other parties of the contract cannot commence, arbitral or Sopa proceedings or the same matter, until a determination is made or the application is rejected or withdraw. 

If a determination is made and the terms of the contract are adjusted, any subsequent applications and determinations made under Sopa must be based on the adjusted contract terms. 

In cases where a Sopa application is made before the other party seeks relief under the Act, the Sopa adjudicator will have powers to grant relief – similar to that of the assessors – to account for the impact of Covid-19.

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Updates on Rental Relief Framework

Expanded powers for rental relief assessors

Under the rental relief framework, a landlord who is unable to reach an agreement with is tenant may apply to have an independent rental relief ascertain:

a) The tenant’s eligibility for rental waivers (either the portion supported by Government assistance, and/or the portion borne by the landlord)

b) The landlord’s eligibility to provide a reduced amount of rental waivers, on the basis of financial hardship

The amendments to the Act proposed on September 3, will expand the powers of rental relief assessors so that they can make determinations on unresolved disputes relating to the amount of rent to be waived under the framework, where the amount is affected by any of the following factors:

a) The amount of maintenance and service charges, especially where such charges are not explicitly listed in the lease or license agreement

b) The amount that can be offset by assistance provided by the landlord earlier

c) The tenant is occupying the property for only a part of the relief period

d) There are multiple-sub tenants in the same property 

Clarifying interaction between Part 8 and other dispute resolution proceedings

The amendment Bill will also clarify the existing Part 8 of the Act – not yet in force – that allows parties of some contracts to get relief if they are affected by breaches or delays in construction, supply or related contracts.

It will specify that no application for relief for such contracts can be filed if court, arbitral or Building and Construction Industry Security of Payment Act (Sopa) proceedings related to the application have already started.

Conversely, once an application for relief ha been filed, the other parties of the contract cannot commence, arbitral or Sopa proceedings or the same matter, until a determination is made or the application is rejected or withdraw. 

If a determination is made and the terms of the contract are adjusted, any subsequent applications and determinations made under Sopa must be based on the adjusted contract terms. 

In cases where a Sopa application is made before the other party seeks relief under the Act, the Sopa adjudicator will have powers to grant relief – similar to that of the assessors – to account for the impact of Covid-19.