Stabilisation And Support Package

As announced on 26 March and 6 April 2020, the Government will enhance measures under the Stabilisation and Support Package that was first introduced at Budget 2020. This will provide greater assurance and support to workers and enterprises in this time of economic uncertainty. In addition to providing cash flow support, the Package supports firms to retain and retrain workers, and share productivity gains with them. Sectors more directly affected by the COVID-19 outbreak will receive additional support.

+ Economy-wide measures for workers

1) Jobs Support Scheme [Enhanced]

The Jobs Support Scheme (JSS) will help enterprises retain their local employees (Singapore Citizens and Permanent Residents)1 during this period of economic uncertainty.

The government will co-fund the first $4,600 of gross monthly wages (includes employee CPF contributions but excludes employer CPF contributions) to each local employee for nine months. There are three levels of co-funding for employers in different sectors, as shown in the table below.

In addition, wage support for the months of April and May 2020 will be topped up to 75% for all sectors to support firms during the ‘circuit breaker’ period. Wage support for other months will remain unchanged as per the table below.

 

JSS will support the following groups of employers:

JSS will provide support of:

Tier 1 Aviation and Tourism
  • Airlines
  • Airport ground handlers
  • Airport operators
  • Qualifying licensed hotels
  • Qualifying licensed travel agents
  • Qualifying gated tourist attractions
  • Cruise lines
  • Cruise terminal operators
  • Purpose built Meetings, Incentives, Conferences, and Exhibition venue operators
75% of the first $4,600 of gross monthly wages per local employee
Tier 2 Food Services
  • Licensed food shops and food stalls (including hawker stalls)
50% of the first $4,600 of gross monthly wages per local employee
Tier 3 All other sectors
  • All other employers
25% of the first $4,600 of gross monthly wages per local employee


The table below shows a worked example of how the JSS payout is computed for an employer with three local employees earning different wages.

Local Employee

Gross Monthly Wages paid in Month X

Qualifying Wage in Month X (first $4,600)

JSS payout to employer for Month X, if employer is in…

Tier 1 (75%) Aviation & Tourism

Tier 2 (50%) Food Services

Tier 3 (25%) All other sectors

Employee #1

$4,000

$4,000

$3,000

$2,000

$1,000

Employee #2

$4,500

$4,500

$3,375

$2,250

$1,125

Employee #3

$5,000

$4,600

$3,450

$2,300

$1,150

Total

$9,825

$6,650

$3,275



Month X in the table above excludes April and May 2020, for which the JSS support levels will be 75% for all sectors, equivalent to Tier 1.

Employers will receive three main JSS payouts in April, July, and October 2020, covering wages paid in the months shown in the table below. There will also be an additional payout in May to provide cashflow support for firms during the ‘circuit breaker’ period.

The Apr 2020 and May 2020 payouts will provide support in advance for Apr 2020 and May 2020 wages respectively. This is done in order to provide cashflow support for firms during the ‘circuit breaker’ period. These advances will be calculated based on Oct 2019 and Nov 2019 wages respectively. The subsequent JSS payouts in Jul 2020 and Oct 2020 will be adjusted to account for these advances.

Payout

When will my firm receive?

JSS will cover wages paid in:

Wages derived based on CPF contributions made by:

1st Payout

Apr 2020

Oct-Dec 2019
Apr 2020 (computed based on Oct 2019)

14 Feb 2020

Additional Payout

May 2020

May 2020 (computed based on Nov 2019)

14 Feb 2020

2nd Payout

Jul 2020

Feb-Apr 2020
(adjusted for payout given in advance in Apr 2020)

31 May 2020

3rd Payout

Oct 2020

May-Jul 2020
(adjusted for payout given in advance in May 2020)

14 Aug 2020



Further details of how each payout is calculated are given in the table below.

Payout

Date of Payment

Aviation and tourism

Food services

Others

Computation of Payout
Capped at first $4,600 of gross monthly wages
Based on:

Payout 1

Apr 2020

+ 75% of Oct 2019 wages
+ 75% of Nov 2019 wages
+ 75% of Dec 2019 wages

+ 75% of Oct 2019 wages
+ 50% of Nov 2019 wages
+ 50% of Dec 2019 wages

+ 75% of Oct 2019 wages
+ 25% of Nov 2019 wages
+ 25% of Dec 2019 wages

Additional Payout in May

May 2020

+ 75% of Nov 2019 wages

+ 75% of Nov 2019 wages

+ 75% of Nov 2019 wages

Payout 2

Jul 2020

+ 75% of Feb 2020 wages
+ 75% of Mar 2020 wages
+ 75% of Apr 2020 wages

+ 50% of Feb 2020 wages
+ 50% of Mar 2020 wages
+ (75% of Apr 2020 wages
– 25% of Oct 2019 wages)A1

+ 25% of Feb 2020 wages
+ 25% of Mar 2020 wages
+ (75% of Apr 2020 wages
– 50% of Oct 2019 wages)A1

Payout 3

Oct 2020

+ (75% of May 2020 wages
– 75% of Nov 2019 wages)A2

+ 75% of Jun 2020 wages
+ 75% of Jul 2020 wages

+ (75% of May 2020 wages
– 75% of Nov 2019 wages)A2

+ 50% of Jun 2020 wages
+ 50% of Jul 2020 wages

+ (75% of May 2020 wages
– 75% of Nov 2019 wages)A2

+ 25% of Jun 2020 wages
+ 25% of Jul 2020 wages

A1This adjustment is for the temporary JSS enhancement for the month of April 2020. Any negative quantum for a single employee will be offset from the overall JSS payout for the employer.
A2Any negative quantum for a single employee will be offset from the overall JSS payout for the employer.

As announced on 21 Apr 2020, the Government will extend the JSS to cover wages of employees in a company who are also shareholders and directors of the company (shareholder-directors). Wage support for shareholder-directors will only apply to companies registered on or before 20 April 2020, and only for the wages of shareholder-directors with Assessable Income of $100,000 or less for Year of Assessment 2019.

The May 2020 and subsequent JSS payouts will include support for qualifying shareholder-directors. The May 2020 payout will also include back-payment for companies with qualifying shareholder-directors whose wages were excluded from the first JSS payout in April 2020.

Click on the links below to find out more about JSS.

  • JSS Infographics (pdf1240kb)

 

2) Enhancement to Wage Credit Scheme [Updated]

The Wage Credit Scheme (WCS) will be enhanced in Budget 2020. A summary of the changes to WCS is in Table 2 below.

Table 2: Summary of Changes to WCS

Scheme
Existing WCS
as announced in Budget 2018
Enhanced WCS
as announced in Budget 2020
Qualifying years2
  • 2018, 2019, 2020
  • 2019, 2020
Level of co-funding
  • 20% of qualifying wage increases in 2018
  • 15% of qualifying wage increases in 2019
  • 10% of qualifying wage increases in 2020
  • 20% of qualifying wage increases in 2019
  • 15% of qualifying wage increases in 2020
Gross monthly wage ceiling
  • $4,000
  • $5,000
Qualifying wage increases
  • Increases in gross monthly wage of at least $50 given to Singaporean employees in the qualifying year, up to a gross monthly wage level of $4,000, will be co-funded.
  • In addition, increases in gross monthly wage of at least $50 given in 2017, 2018 and 2019 up to a gross monthly wage level of $4,000, and sustained in subsequent years of the scheme, will be co-funded.
  • Increases in gross monthly wage of at least $50 given to Singaporean employees in the qualifying year, up to a gross monthly wage level of $5,000, will be co-funded.
  • In addition, increases in gross monthly wage of at least $50 given in 2017, 2018 and 2019 up to a gross monthly wage level of $5,000, and sustained in subsequent years of the scheme, will be co-funded.

Employers do not need to apply for WCS.

  1. Employers will receive payouts automatically in the month of March after the qualifying year (Y+1), for qualifying wage increases given to their employees in the qualifying year (Y). This is the existing process.
  2. Employers who benefit from additional wage credit arising from the Budget 2020 enhancements will receive a separate supplementary payout in the second half of 2020. Letters will be sent to all qualifying employers to inform them of the supplementary payout.

3) Self-Employed Person Income Relief Scheme [New]

To help self-employed Singaporeans with less means tide over this period of economic uncertainty, eligible self-employed persons will receive $1,000 a month for nine months under the Self-Employed Person Income Relief Scheme (SIRS). Click here to find out more about SIRS.

+ Economy-wide measures to help businesses with cash flow

1) Corporate Income Tax (CIT) Rebate

To help companies with cash flow, a CIT Rebate of 25% of tax payable, capped at $15,000 per company, will be granted for Year of Assessment (YA) 2020.

2) Enhancements of Tax Treatments under the Corporate Income Tax System

These tax treatments will be enhanced under the corporate tax system for one year.

  1. Companies paying their CIT by GIRO can automatically enjoy an additional two months of interest-free instalments, when they file their Estimated Chargeable Income (ECI) within three months from their Financial Year End3. This automatic extension of instalment plan by two more months will apply to:
    1. Companies that file their ECI from 19 February 2020 to 31 December 2020;
    2. Companies that file their ECI before 19 February 2020, and have ongoing instalment payments to be made in March 2020.

    As announced in the Resilience Budget on 26 March 2020, all companies with CIT payments due in the months of April, May, and June 2020 will be granted an automatic three-month deferment of these payments. The CIT payments deferred from April, May, and June 2020 will instead be collected in July, August, and September 2020 respectively.

    (Self-employed persons (SEPs) with personal income tax (PIT) payments due in the months of May, June, and July 2020 will be granted an automatic three-month deferment of these payments. The PIT payments deferred from May, June, and July 2020 will instead be collected in August, September, and October 2020 respectively.)

  2. Allow up to $100,000 of the unabsorbed capital allowances and trade losses for YA2020 to be carried back up to three immediate preceding YAs, instead of one preceding YA;
  3. Provide an option to accelerate the write-off of the cost of acquiring plant and machinery (P&M) in financial year ending in 2020 (i.e. P&M acquired in the basis period for YA2021) over two years; and
  4. Provide an option to accelerate the deduction of expenses incurred on renovation and refurbishment (R&R) in financial year ending in 2020 (i.e. R&R done in the basis period for YA2021) in one year.

3) Enterprise Financing Scheme – SME Working Capital Loan and Trade Loan [Enhanced]

The Enterprise Financing Scheme – SME Working Capital Loan (EFS-WCL), which is available to SMEs across all industries, will be enhanced from March 2020 to 31 March 2021 to help SMEs with their working capital needs. The Government will raise the maximum loan quantum to $1 million, and enhance the Government’s risk-share to 90% for loans initiated from 8 April 2020 to 31 March 2021 under the scheme.

Interested enterprises can apply directly to the Participating Financial Institutions.

The Enterprise Financing Scheme – Trade Loan (EFS-TL), supports Singapore-based enterprises’ trade financing needs, which include the financing of short-term import, export and guarantee needs. The EFS-TL, which is available to enterprises across all industries, will be enhanced for one year (from 1 April 2020 till 31 March 2021) to further help enterprises with their trade financing needs. The Government will raise the maximum loan quantum from $5 million to $10 million, and enhance the Government’s risk-share to 90% (from the current 50% to 70%) for loans initiated from April 2020 to 31 March 2021 under the scheme.

Interested enterprises can apply directly to the Participating Financial Institutions.

4) Loan Insurance Scheme [Enhanced]

The Loan Insurance Scheme (LIS) helps SMEs secure short-term trade loans by having commercial insurers co-share loan default with Participating Financial Institutions. A portion of the insurance premium paid by SMEs to insurers is supported by the Government. The Government will increase support for the LIS insurance premium from 50% to 80% for one year, (from 1 April 2020 to 31 March 2021), to help SMEs across all industries manage their trade financing costs.

Interested enterprises can apply directly to the Participating Financial Institutions.

5) Temporary Bridging Loan Programme for All Sectors [Enhanced]

Administered by Enterprise Singapore, the Temporary Bridging Loan Programme (TBLP) was launched in March 2020 to provide additional cash flow support for tourism sector enterprises for one year (till 31 March 2021). The TBLP will be expanded to all sectors from 1 April 2020. The maximum loan quantum will also be increased to $5 million, with the interest rate capped at 5% p.a. The Government will provide 90% risk-share for loans initiated from 8 April 2020, to 31 March 2021 under the programme.

Interested enterprises can apply directly to the Participating Financial Institutions.

+ Sector-specific support

In addition to the economy-wide measures to help workers and businesses, sectors directly affected by the COVID-19 outbreak will get additional support.

1) Enhancement to Adapt and Grow Initiative

WSG will enhance support under the Adapt and Grow initiative for more directly impacted sectors, such as hotel, retail, food services, tourism, and air transport. As a start, funding support duration for the following existing redeployment programmes4 will be extended from the current three months to a maximum of six months:

  1. Job Redesign Place-and-Train (PnT) Programme for Hotel Industry
  2. Job Redesign PnT Programme for Retail

In addition, WSG will introduce the following new programmes to support redeployment:

  1. Job Redesign PnT Programme for Food Services Industry
  2. Digital Marketing PnT Programme
  3. Professional Conversion Programme (PCP) for Meetings, Incentives, Conventions and Exhibitions (MICE), Attractions and Tour and Travel
  4. PCP for Digital Operations Talents for the Furniture Industry
  5. PnT Programme for Air Transport Coordinators

The enhanced support will be time-limited.

2) Property Tax Rebate for Non-Residential Properties [Enhanced]

Non-residential properties will be granted a rebate for Property Tax (PT) payable for the period 1 January 2020 to 31 December 2020.

The property owner is required to pass on to his tenant the full amount of PT rebate attributable to the rented property, in a timely manner and unconditionally. The PT rebate is to be passed on by making a cash payment to the property owner's tenant, or by reducing or offsetting future rental payments.

For more information, please visit the IRAS website.

Property tax payable for

Property tax rebate as announced at the FY 2020 Budget

Enhanced property tax rebate as announced at the FY 2020 Supplementary Budget

A) Hotel room or function room of a hotel registered under the Hotels Act

30%

100%

B) Serviced apartment or serviced apartment function room

C) Premises of the following that are used or intended to be used for Meetings, Incentive Travel, Conventions and Exhibitions (MICE):

  • Suntec Singapore Convention and Exhibition Centre;
  • Singapore EXPO; and
  • Changi Exhibition Centre.

D) All the premises of the following:

  • Changi Airport;
  • Singapore Cruise Centre;
  • Marina Bay Cruise Centre Singapore; and
  • Tanah Merah Ferry Terminal.

15%

E) Premises that are used or intended to be used as:

  • Backpackers’ hostel, boarding house, guest house or students’ hostel that is not a hotel;
  • Hotel that is not a registered hotel;
  • Shop or warehouse retail building;
  • Restaurant;
  • Sports and recreation building;
  • Amusement centre;
  • Cinema or theatre;
  • Medical clinic, hospital, nursing home, hospice, place of rehabilitation or convalescent home;
  • Childcare centre or kindergarten;
  • School;
  • Driving school;
  • Purpose-built workers’ dormitory; or
  • Tourist attraction.

F) All the premises of the following:

  • Marina Bay Sands; and
  • Resorts World Sentosa.

The above rates in (A) – (E) do not apply to Marina Bay Sands and Resorts World Sentosa.

10%

60%

G) Other non-residential properties. Some examples are:

  • Premises used for an industrial or agricultural purpose
  • Offices
  • Business or science park
  • Petrol station
  • Warehouse

0%

30%

The above PT Rebate does not apply to any other premises or part of any premises used or intended to be used for any residential purpose.



3) Aviation Sector Measures [Enhanced]

The Aviation Sector Assistance Package, co-funded by the Government, the Civil Aviation Authority of Singapore (CAAS) and the Changi Airport Group (CAG), aims to help defray business costs and protect jobs, as well as safeguard Changi’s air connectivity. The assistance will be provided for a 6-month period. The package will provide immediate relief to affected companies during the COVID-19 outbreak period.

  1. Airlines

    Airlines operating flights between mainland China and Singapore have been most adversely affected thus far by the COVID-19 outbreak. The following assistance will be provided to them:

    • All airlines that had operated scheduled passenger flights between mainland China and Singapore before the COVID-19 outbreak will receive landing credits.
    • Those that operate scheduled passenger flights between mainland China and Singapore during up to 31 July will receive 100% Landing Charge Rebates for these flights.

    Further support will also be provided to defray airlines’ other operating costs:

    • 100% Parking Charge Rebate for all scheduled passenger flights up to 31 October 2020;
    • 10% Landing Charge Rebate for all scheduled passenger flights landing in Singapore between 1 April 2020 and 31 October 2020;
    • 50% Rebate on CAAS’s regulatory fees for new and renewed Certificates of Airworthiness paid by Singapore carriers flying scheduled flights in FY2019; and
    • 12-month waiver of the planned 1% annual increase in Landing, Parking, and Aerobridge (LPA) Charges for all flights, which had been previously announced on 28 February 2018 and is scheduled to take effect from 1 April 2020;
    • 50% rebate on rental paid for airlines’ lounges and offices within Changi Airport terminal buildings between 1 April 2020 and 31 October 2020 (both dates inclusive).
  2. Cargo Sector

    Freighter airlines and cargo agents impacted by the disruption in supply chains will receive the following assistance:

    • 10% Landing Charge Rebate for all scheduled freighter flights up to 31 October 2020;
    • 20% Rental Rebate for cargo agents tenanted in Changi Airfreight Centre between 1 April 2020 and 31 October 2020; and
    • 12-month waiver of the planned 1% annual increase in LPA Charges scheduled to take effect from 1 April 2020.
  3. Other Airport Stakeholders

    Ground handling agents and retail/F&B tenants at the airport are also affected by the decline in traffic. They will receive assistance, such as rental rebates.

  4. Maintain Minimum Air Connectivity

    The Government will provide funding support to Singapore carriers to maintain a minimum level of air connectivity. This will allow Singaporeans to return to Singapore and for the transportation of goods to keep our supply chains open during the COVID-19 pandemic. The level of connectivity will be adjusted based on needs.

4) Maritime Sector Measures [Enhanced]

  1. 50% Port Dues Concession

    The Maritime and Port Authority of Singapore (MPA) will be giving 50% port dues concession to cruise ships and regional ferries with a port stay of not more than five days, and passenger-carrying harbour craft. This will be on top of any existing concessions5. This measure will be implemented from 1 March 2020 to 31 December 2020.

  2. Additional 35% Rebate on Counter Rental and Overnight Berthing

    SCCPL has given a 15% rebate to regional ferry operators to offset their rental fees for overnight berthing of vessels and counter rental at Tanah Merah Ferry Terminal for three months from March 2020. MPA will provide an additional 35% rebate to these operators.

  3. 100% Waiver of Public Licence Fees for Passenger Terminal Operators

    MPA will grant passenger terminal operators 100% waiver of their public licence fees for one year.

5) Land Transport Sector [Enhanced]

  1. Eligible taxi hirers and PHC drivers will continue to receive the Special Relief Fund payments of $300 per vehicle per month until end-September.
  2. The Land Transport Authority will grant further waivers to operator licence fees totalling about $3 million.
  3. The Land Transport Authority will extend a tax rebate to offset some of the special tax and road tax payable for each idle taxi.
  4. LTA will also waive the $100 PHC vehicle outward conversion fee from May to September 2020.

6) Rental Waivers for Tenants in Government-owned / managed Non-Residential Facilities [Enhanced]

As announced on 26 March 2020, to help alleviate costs for businesses, the government will enhance rental waivers. The following tenants will qualify for rental waivers:

  1. Stallholders of Hawker Centres and Markets. Stallholders who qualified for the one month’s worth of rental waiver announced in Budget 2020 will now get three months’ worth of rental waiver (i.e. two months more), with a minimum waiver of $200 per month.
  2. Commercial Tenants. Commercial tenants who qualified for the half a month’s worth of rental waiver announced in Budget 2020 will now get two months’ worth of rental waiver in total (i.e. one and a half months more). Eligible tenants/lessees may include those providing commercial accommodation, retail, F&B, recreation, entertainment, and healthcare, services.
  3. Other Non-Residential Tenants. Government agencies such as JTC, SLA, HDB, URA, BCA, NParks, and PA will provide one month’s worth of rental waiver to eligible tenants of other non-residential premises who do not pay Property Tax. Eligible tenants/lessees may include those in premises used for industrial or agricultural purpose, or as an office, a business or science park, or a petrol station.

+ More information

For more information and enquiries on specific schemes, please find contact details below.

Scheme
Contact Details
Jobs Support Scheme
Wage Credit Scheme
Website: https://www.iras.gov.sg/irasHome/wcs.aspx
Email: wcs@iras.gov.sg
Hotline: 1800-352-4727
Self-Employed Person Income Relief Scheme
Website:https://www.mom.gov.sg/newsroom/press-releases/2020/0327-about-88000-to-automatically-benefit-from-self-employed-person-income-relief-scheme

Enterprise Financing Scheme – SME Working Capital Loan and Trade Loan, Loan Insurance Scheme and Temporary Bridging Loan Programme

Property Tax Rebate for Non-Residential Properties

Website: https://www.iras.gov.sg/irashome/Property/Property-owners/Working-out-your-taxes/Property-Tax-Reliefs/
E-mail: myTax Mail

Adapt and Grow
Maritime Sector
Rental Waivers
Please contact your respective landlord agencies.


1Wages paid to business owners will not be eligible for the grant.
2E.g. An employer qualifies for WCS in 2019 (i.e. 2019 is considered a qualifying year) if (i) the employer paid the employee CPF contributions for at least 3 months in 2019, (ii) the employee received CPF contributions for at least 3 months in 2018, and (iii) the employee has a qualifying wage increase in 2019.
3Companies have to e-File by 26th of the month in order to enjoy the maximum number of instalments allowable for that month.
4Professional Conversion Programmes (PCPs) are targeted at Professionals, Managers, Executives and Technicians (PMETs), while the Place-and-Train programmes are targeted at rank-and-file workers. The programmes include redeployments which support the existing workers who are vulnerable or at risk of redundancy, to undergo reskilling and take on new or redesigned job roles within the same company.
5Existing concessions include port dues concession for vessels under the Maritime Singapore Green Initiative, and 20% port dues concession given to qualifying passenger cruise ships (i.e. ships that make 6 calls within 6 months).