Singapore budget business support is already on the table for small firms, and the new Budget arrives tomorrow. The Minister for Finance will deliver the 2025 Budget Statement in Parliament on Tuesday, 18 February, at 3.30pm. Nobody outside government knows what it holds yet. But a small firm can still prepare today, because several schemes from earlier years are in force. This note lists them in plain terms.
It does not guess what tomorrow will bring. It covers only what has been published and is already running.
Sources: Ministry of Finance, "2025 Budget Statement to be delivered on Tuesday, 18 February 2025 at 3.30pm" (notice dated 3 February 2025), https://www.mof.gov.sg/news-resources/newsroom/2025-budget-statement-to-be-delivered-on-tuesday-18-february-2025-at-3-30pm/.
The corporate tax rebate and cash grant
The latest tax relief for companies came with Budget 2024. It applied to the year of assessment 2024, which is the tax year covering income earned in 2023. Companies received a rebate of 50% of the tax they had to pay.
Many small firms pay little tax, so the rebate alone could be tiny. To fix that, the government added a cash grant. A company that paid Central Provident Fund contributions for at least one local employee in 2023 received at least $2,000 in cash. Local means a Singapore citizen or permanent resident. Shareholders who are also directors do not count for this test.
The cash grant was paid automatically by the third quarter of 2024. The rest of the rebate is applied after the company files its tax return for that year. The most any company could receive was $40,000 in total.
IRAS gives a simple example. A company with two local employees has a tax bill of $30,000. It receives $2,000 in cash. It then gets another $13,000 off its tax assessment, because half of $30,000 is $15,000, less the $2,000 already paid.
Sources: Inland Revenue Authority of Singapore, "Budget 2024: Overview of Tax Changes", https://www.iras.gov.sg/docs/default-source/budget-2024/budget-2024---overview-of-tax-changes.pdf.
The GST rate is now 9%
The Goods and Services Tax went up in two steps. It rose from 7% to 8% on 1 January 2023. It rose again from 8% to 9% on 1 January 2024. This was set out in Budget 2022.
If your firm is GST registered, check that your invoices, price tags and point of sale system all show 9%. IRAS names two common mistakes. One is charging 9% before the change date. The other is still charging 8% after it. The rate that applies depends on the time of supply, which links to when you issue the invoice or receive payment.
Sources: IRAS, "What consumers need to know with the new GST rate from 1 Jan 2024", https://www.iras.gov.sg/who-we-are/what-we-do/annual-reports-and-publications/taxbytes-iras/gst/what-consumers-need-to-know-with-the-new-gst-rate-from-1-jan-2024.
Grants for upgrading your business
Enterprise Singapore runs two grants that small firms use most. Both can pay up to 50% of eligible costs for local SMEs.
The Enterprise Development Grant backs projects to upgrade, innovate or grow. It can cover outside consultancy fees, software and equipment, and some internal staff costs. Projects fall into three groups: core capabilities, innovation and productivity, and market access for going abroad. Your company must be registered and operating in Singapore, with at least 30% local equity. It must also show it can afford to finish the project.
The Productivity Solutions Grant is simpler. You pick a solution from a list of pre-approved products, such as accounting or stock control software. The list sits on the GoBusiness Gov Assist site. You can only be supported on pre-scoped packages from pre-approved vendors, so you cannot ask for a custom quote.
Sources: Enterprise Singapore, "Enterprise Development Grant", https://www.enterprisesg.gov.sg/financial-support/enterprise-development-grant; Enterprise Singapore, "Productivity Solutions Grant", https://www.enterprisesg.gov.sg/psg.
How to prepare before the Budget
Use tonight to get your records in order. New measures usually come with conditions, and firms with tidy files can act faster.
- Find your Central Provident Fund records for your local staff. The cash grant test used them, and later schemes may too.
- Check your GST registration status and that your invoices show the right rate.
- List the projects you want to do this year, such as new software or a new market. Note the cost of each.
- Ask your accountant when your next tax return is due, and what tax you expect to owe.
- Keep your company details up to date with the authorities, so any automatic payments reach you.
Do not sign a contract today on the hope that a grant will cover it. Grants usually need approval before a project starts. Read each scheme page first.
What to do once the Budget is announced
Tomorrow's statement will be broadcast live on television, radio and online. The Ministry of Finance says the full statement will also be on the Singapore Budget website after it is delivered. Read the official text for your own facts, not a summary passed along by others.
Look for four things. First, whether there is a new tax rebate or cash payout, and which firms qualify. Second, any change to grants such as the two above. Third, new help with wage costs or hiring. Fourth, the dates when each measure starts and how you apply.
The public was also invited to send ideas for this Budget between 2 December 2024 and 12 January 2025. Business ecosystem support was one of the themes on that list.
This note is general information about business practice. It is not financial, tax or legal advice. For decisions about tax or grants, speak to a qualified accountant or adviser.
Sources: Ministry of Finance, notice dated 3 February 2025, as above; Ministry of Finance, "MOF Invites Views and Suggestions for Budget 2025", https://www.mof.gov.sg/news-resources/newsroom/mof-invites-views-and-suggestions-for-budget-2025/.
Sources
- Ministry of Finance, "2025 Budget Statement to be delivered on Tuesday, 18 February 2025 at 3.30pm": https://www.mof.gov.sg/news-resources/newsroom/2025-budget-statement-to-be-delivered-on-tuesday-18-february-2025-at-3-30pm/
- Ministry of Finance, "MOF Invites Views and Suggestions for Budget 2025": https://www.mof.gov.sg/news-resources/newsroom/mof-invites-views-and-suggestions-for-budget-2025/
- IRAS, "Budget 2024: Overview of Tax Changes": https://www.iras.gov.sg/docs/default-source/budget-2024/budget-2024---overview-of-tax-changes.pdf
- IRAS, "What consumers need to know with the new GST rate from 1 Jan 2024": https://www.iras.gov.sg/who-we-are/what-we-do/annual-reports-and-publications/taxbytes-iras/gst/what-consumers-need-to-know-with-the-new-gst-rate-from-1-jan-2024
- Enterprise Singapore, "Enterprise Development Grant": https://www.enterprisesg.gov.sg/financial-support/enterprise-development-grant
- Enterprise Singapore, "Productivity Solutions Grant": https://www.enterprisesg.gov.sg/psg