ANNOUNCED AS TEMPORARYNo
Tax or social insurance relief
On 23 February 2015, the Singaporean Deputy Prime Minister presented the annual budget to the parliament. He announced the prolongation of the Wage Credit Scheme and the Corporate Income Tax Rebate (henceforth: CIT rebate) for another two years but under milder conditions. Both programmes were part of the Transition Support Package announced in the 2013 budget (cf. Related Measures).
In the years 2016 and 2017, the government will cover 20% of wage increases of at least 50 SGD with a maximum monthly wage of 4'000 SGD (previously 40%). Meanwhile, the maximum annual CIT rebate per company shall be 20'000 SGD in those two years (earlier 30'000 SGD).
Despite the smaller state aids, the measure would be classified as red, since the Transition Support Scheme was previously supposed to expire anyway. However, as the migration part of the announcement is trade-liberalising, so overall this measure shall be classified as amber.
Levy increase for S Pass and Work Permit holders largely frozen
Furthermore, "as the net inflow of foreign workers (excluding construction) has slowed significantly, the Government will defer this year's round of announced levy increases for S Pass and Work Permit Holders, with the exception of Work Permit Holder levies in the Manufacturing and Construction sectors:
The government also prolonged and extended numerous SME-supporting schemes, e.g. by increasing the co-investment cap to 2 million SGD for BAS and Spring's Startup Enterprise Development Scheme.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
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