Updates from the Budget
The recent budget in Singapore, was released with the stated aim of ‘Emerging Stronger Together’ to strengthen Singapore’s social compact, innovation and sustainability. The measures relevant to employers are summarised below:
Updates to Withholding tax (“WHT”) exemptions for the financial sector
- The existing WHT exemption for Section 12(6) payments made to any non-resident person [excluding any Permanent Establishments (“PE”) in Singapore] by specified entities, for the purpose of the specified entities’ trade or business, will be extended till 31 December 2026.
- The existing WHT exemption for Section 12(6) payments made by specified entities to any PE in Singapore will be extended till 31 December 2026.
Job Support Scheme updates:
- JSS will be extended for firms in Tier 1 and 2 sectors by up to six months, with tapered support levels, as follows:
- Tier 1 sectors (Aviation, Aerospace, and Tourism): Receive 30% JSS support for wages paid from April to June 2021, and 10% JSS support for wages paid from July to September 2021.
- Tier 2 sectors (e.g. Food Services, Retail, Marine and Offshore, and Arts and Entertainment): Receive 10% JSS support for wages paid from April to June 2021.
- JSS support will cease for wages after March 2021 for Tier 3A sectors.
- For employers that are not allowed to resume on-site operations, JSS support will revert to the firms’ base JSS tier for wages paid from April 2021 onwards.
For further information on the Singapore budget please contact your usual advisor.
Soo Mee Wu