The Singapore government has introduced various incentives and programs to help small medium enterprises (SMEs) recover from the fragile financial conditions because of the COVID- 19 outbreak.
Singapore Budget 2020 highlights consist of assistance in various sectors, like loan support, employees salary payments, employee training, assistance with legal contracts, and many more.
One significant field where the government has helped companies in is properties. Both estate owners and tenants are set to benefit from the schemes in place.
For Property Owners: Property Tax Rebate
Owners of eligible commercial properties can get rebates of up to 100{8425beff49249f921e7a852ead68a4d6c9538cb2e8197c348a082fbb58f93b12} on the property tax. Other types of properties can qualify for tax discounts of 60{8425beff49249f921e7a852ead68a4d6c9538cb2e8197c348a082fbb58f93b12} and 30{8425beff49249f921e7a852ead68a4d6c9538cb2e8197c348a082fbb58f93b12}. These are the properties that will get 100{8425beff49249f921e7a852ead68a4d6c9538cb2e8197c348a082fbb58f93b12} tax refunds:
- Registered Hotel and Function Rooms.
- Serviced Apartment and Apartment Function Rooms.
- Singapore Changi Airport Premises
- Prescribed Meetings, Conventions and Exhibition Centres (Suntec Singapore Convention and Exhibition Centre, Singapore EXPO, and Changi Exhibition Centre)
- International Cruise and Local Ferry Terminals
- Shops (retails, restaurants, etc.)
- Tourist Attraction premises.
Marina Bay Sands and Resorts World Sentosa will get a rebate of 60{8425beff49249f921e7a852ead68a4d6c9538cb2e8197c348a082fbb58f93b12}. Other properties, except residential estates (and buildings made for the exclusive use of residential area purposes like swimming pools, gyms etc) will receive a 30{8425beff49249f921e7a852ead68a4d6c9538cb2e8197c348a082fbb58f93b12} tax discount.
Note: Vacant Land and property in construction don’t qualify for this scheme.
For Tenants: Rental Waiver
The Covid-19 outbreak has also affected companies which don’t have their own property. Well, there is a scheme in place to help Singapore SME tenants.
The Singapore government has decided to pay off two months’ rents for companies renting commercial property. Furthermore, if the tenant is using government property (for example, hawker), they will not have to pay the rent for four months.
In this scheme, the government will give money to the landlords. Also, the governing body has urged landlords to waive the rent for an extra two months if the company isn’t able to make much revenue amidst the COVID-19 outbreak.
