Corporate Income Tax Rebate

Singapore Budget 2020

15/03/2020
Corporate Income Tax Rebate

To help businesses cushion the economic impact of the COVID-19 outbreak, the “Stabilisation and Support Package” was announced in the Budget Statement for the financial year 2020. As the name suggests, the relief package seeks to stabilise the economy and support industries in this period of economic uncertainty. There are industry-specific and broad-based measures to support employers retain their employees and help businesses cope with cash flow difficulties precipitated by the COVID-19 outbreak.

The table below summarizes the measures introduced in Budget 2020 with regards to the Corporate Income Tax Rebate, its impact on businesses and the action required in order to reap its benefits: 
 

Corporate Income Tax Rebate

Measures Introduced in Budget 2020

Impact

Action Required

All companies will receive a 25% CIT rebate for the Year of Assessment (“YA”) 2020. The rebate is capped at S$15,000.

The CIT rebate is available to all companies including registered business trusts and Singapore branches of foreign companies.

The CIT rebate reduces the tax liability of tax paying companies in YA 2020 (financial year ended 2019).

As the CIT rebate will be capped at S$15,000, this measure will have a greater benefit for small and medium enterprises in terms of the reduction in their effective tax rates.

There is no action required from companies to obtain the CIT rebate. The CIT rebate will be computed automatically.

Companies that have filed and paid their estimated tax liability for YA 2020 can expect a refund equal to the amount of CIT rebate allowed to them.


For further information on this measure, watch our Singapore Budget 2020 Insights video:

Helping businesses cope with economic uncertainty.

If you wish to know in detail how your business can benefit from the measures announced in Budget 2020, please contact our tax team at tax@crowe.sg
Crowe Singapore Budget 2020 Newsletter

Singapore Budget 2020 Newsletter