guide to 2013 budget measures for smes
DESCRIPTION
SPRING Singapore has come up with a Budget Flyer on the 2013 Measures for SMEs. It provides a snapshot of the Budget measures across all the government agencies that impact SMEs, as well as various SPRING program that SMEs can tap on. It also contains important contact details of EnterpriseOne, EDCs, government agencies and other useful resources.TRANSCRIPT
2013 Budget Measures
for sMes Business TransformaTion for QualiTy GrowTh
“The restructuring of our economy must result eventually in a dynamic and re-energised SME scene. In this Budget, we will introduce a Quality Growth Programme, which is aimed at
helping businesses to upgrade, create better jobs and raise wages.” Deputy Prime Minister and Finance Minister Tharman Shanmugaratnam, Budget 2013
updated 18 March 2013
the Quality growth Programme is aimed at helping businesses upgrade, create better jobs and raise wages. We will continue to tighten our foreign workforce
policies through a targeted approach:
Tightening Foreign Worker Policies
(a) Foreign Worker Levies Increase Foreign Worker Levies for Work Permits and S Passes will increase for all sectors in 1July2014and1July2015.Increasesinlevieswillbemostsignificantinsectors where its productivity growth is weak and where its growth of foreign workers is substantial.
(b) s Pass Qualifying salary Increase The S Pass qualifying salary criteria will increase from $2,000 to $2,200 from 1 July 2013.
(c) dependency ratio Ceiling (drC) reduction
(For more details, visit www.mom.gov.sg)
Sector Current Changes
Work Permit
Manufacturing 60% Unchanged
Services ·Overall - 45%·S Pass (Sub-DRC) -
20%
·Reduced to 40%·Reduced to 15%- New applicants will be subject to the new DRCs from
1 July 2013.- For existing permit holders & renewals, the new DRCs
will take effect from 1 July 2015.
Construction 1 local : 7 foreigners Unchanged
Process 1 local : 7 foreigners Unchanged
Marine 1 local : 5 foreigners ·Reduced to 1 local : 4.5 foreigners (from 1 Jan 2016)·Reduced to 1 local : 3.5 foreigners (from 1 Jan 2018)
S Pass
Services 20% Reduced to 15% - New applicants will be subject to new DRC from 1 July
2013.- For existing permit holders & renewals, the new DRCs
will take effect from 1 July 2015.
All Other Sectors 20% Unchanged
© SPRING Singapore 1
2013 Budget Measures for sMes
The Government will co-fund 40% of wage increases given to Singaporean employees with a gross monthly salary of up to and including $4,000 over the next three years (2013-2015), to encourage the sharing of productivity gains with workers and alleviate rising manpower costs in a tight labour market. (For more details, visit www.iras.gov.sg/irasHome/wcs.aspx or contact Iras at [email protected] or tel: 1800-352-4727)
a. Wage Credit Scheme
[For more details, contact Iras at tel: 1800-356-8622 (companies) or 6351 3534 (self-employed/partnership)]
b. Productivity and Innovation Credit (PIC) Bonus
to help businesses cope with this transformation, we will introduce a three-year transition support package:
b. Collaborative Industry Projects c. Technology Adoption Programme
The Government will work with industry players and partners like Trade Associations and Chambers (TACs) to addresssector-specificproductivitychallenges.Consortiawith at least 3 SMEs, comprising solution providers and users, will be formed to develop and propose bottom-up deployable and scalable productivity solutions. SPRING will be looking at the Collaborative Industry Projects (CIP) in six priority sectors: Food Manufacturing, Food Services, Furniture, Printing & Packaging, Retail and Textile & Fashion.
(For more details, contact enterpriseOne at [email protected] or tel: 6898 1800)
A*STAR will help to link companies’ technology needs to solution providers to help companies across sectors increase productivity through adopting technology innovations and solutions. From July 2013, this programme will be piloted in six sectors – Construction, Food Manufacturing, Precision Engineering, Marine, Aerospace as well as Retail.
to build a productive, competitive and vibrant sMe sector and to create meaningful jobs for singaporeans, we will support sMes through these key measures:
Enhanced PIC Scheme: • Qualifyingactivitiesunder‘AcquisitionofIntellectualProperty(IP)’willbeextendedtoinclude IP in-licensing. • MoreautomationequipmentwillqualifyforPICbenefits,includingbasictoolsoftradethat improve productivity.The above changes will take effect from YA 2013.
a. Enhanced Productivity and Innovation Credit (PIC) Scheme
1 – Helping sMes drive Productivity, Innovation & Capability upgrading
[For more details, visit www.iras.gov.sg/irashome/PIcredit.aspx or contact Iras at tel: 1800-356-8622 (companies) or 6351 3534 (self-employed/partnership)]
(For more details, visit www.a-star.edu.sg)
New New
To help companies cope with rising business costs, companies will receive a 30% Corporate Income Tax (CIT) Rebate that is subject to a cap of $30,000 per YA, for 3 years from YA2013 to YA2015.(For more details, visit www.iras.gov.sg/irasHome/page04.aspx?id=14564)
c. Corporate Income Tax Rebate New
New
roll-out Period: second half of 2013
2 © SPRING Singapore
Businesses (i.e. companies, sole-proprietorships and partnerships) that spend a minimum of $5,000 in PIC qualifying activities in a Year of Assessment (YA) will receive a dollar-for-dollar matching bonus up to $15,000 from YA 2013 to YA 2015. This is in addition to existingPICbenefits.
2013 Budget Measures for sMes
© SPRING Singapore 3
d. Land Productivity Grant
Programme that supports companies which intensify their use of land in Singapore, or choose to relocate some operations offshore, including to the immediate region while retaining core functions in Singapore.[For more details, contact: enterpriseOne at [email protected] or tel: 6898 1800 (local enterprises) or edB’s Client services Centre at 6832 6832 (non-local enterprises)]
New
Jointly administered by SPRING and the TACs, the SME Talent Programme will help SMEs attract and recruit local talent from ITEs and Polytechnics over the next three years, through a study award for students, followed by a job opportunity upon graduation. (For more details, contact enterpriseOne at [email protected] or tel: 6898 1800)
e. SME Talent Programme New
roll-out Period: second quarter of 2013
a. Market Readiness Assistance (MRA) Grant
SMEs will receive greater support for in-market business development. IE Singapore will work with TACs to hire in-market business development intermediaries to help SMEs identify and secure business opportunities overseas. (For more details, visit www.iesingapore.com)
b. Support for In-market Business Development
2 – Helping sMes tap Opportunities for growth
SMEs accessing markets can tap the grant to get advice from pre-approved consultants on areas like market assessment, market entry and business restructuring through internationalisation. (For more details, visit www.iesingapore.com)
New
roll-out date: 1 april 2013
3
WorkPro •Fundingsupportforjob-redesign,on-the-job training, recruitment and retention efforts to help companies support their aging and multi- generational workforce and to tap on back-to- work locals.
•Work-Life Grant – Made up of: - A developmental grant to help employers defray costs of implementing Flexible Working Arrangements (FWAs) and other work-life programmes; and - An FWa Incentive to motivate employers to support more employees on FWAs.
•Support for back-to-work locals with fully-funded job preparation workshops. Those earning less than $4,500 will receive a retention Bonus, and those from low income households will also receive additional a one-time transport allowance.
WDA’s Enterprise Training Support (ETS) SchemeHolistic HR and training support package forcompanieswithfivegrantstotapon: i) Training Grant, ii) Capability Grant, iii) HR Development Grant, iv) Compensation and BenefitsSystemReviewGrant,andv)CurriculumContextualisation and Alignment Grant.
Enhanced Training Support for SMEsSMEs’ training costs will be further lowered to encourage greater training participation. Funding of up to 90% for over 8,000 courses will be available.
Place-and-Train (PnT)Increased funding for Pnt programmes – aschemewhereworkersarefirsthiredbyemployers before undergoing skills training required for the job. During the training period, workers’ salaries and training costs will be co-funded by WDA.
f. Workforce and Training Support
(For more details, visit www.mom.gov.sg or www.wda.gov.sg)
a. SME Centres
For better access to government assistance, SPRING has streamlined its various schemes into one main Capability Development Grant (CDG) to support SMEs in their productivity improvement and capability developmentefforts.Ithassimplifiedandstandardisedits application forms to two pages. A new online grant portal will also be introduced to reduce paperwork. Inessence,SMEscanlookforwardtofivebroadcategories of assistance: i) toolkit, ii) voucher, iii) tax incentive, iv) grant, and v) loan.
b. Streamlining of Schemes
3 – Helping to Create a Conducive Business environment for sMes
The Enterprise Development Centres (EDCs) will be expanded to become integrated one-stop SME Centres, where SMEs can access information and seek advice on assistance programmes from government and private organisations. SME Centres will also extend outreach to more businesses, providing more concerted government help and easier access to the schemes.(For more details, contact enterpriseOne at [email protected] or tel: 6898 1800)
(For more details, contact enterpriseOne at [email protected] or tel: 6898 1800)
New roll-out date: 1 april 2013
roll-out date: 1 april 2013
To relieve business costs, a 30% road tax rebate
c. Road Tax Rebate
OwnerswhochoosetorenewtheirCOEsforfiveyearsinthefirstinstancewillbeallowedtoextendtheirCOEsfurtherforanotherfiveyears.
d. Further Five-year COE Renewal for Commercial Vehicles
2013 Budget Measures for sMes
4 © SPRING Singapore
will be granted for goods vehicles (including goods-cum-passenger vehicles), buses and taxis for one year. The rebate will take effect on 1 July 2013 and provide savings of about $46 million for businesses.
a. Increase in CPF Contribution Rates for Low-Wage Workers
• EmployerandemployeeCPFcontributionratesforolder employees aged 36 and above, earning less than $1,500 a month, will be restored.• Medisave contribution rates for self-employed persons earning net trade income of between $6,000 and $12,000 will be increased. (For more details, visit www.cpf.gov.sg)
b. Taxation of Housing, Hotel and FurnitureandFittingsBenefits
From YA 2015, housing and hotel accommodation provided to employees will be taxed based on the Annual Value of the premises, less rent paid by the employee, and the actual cost of the hotel accommodation incurred by employers respectively.
SMEs can access more business opportunities and partnerships by tapping on the enhanced PACT scheme, which:• Hasbeenexpandedbeyondthemanufacturingsectortoothersectors;and• WillfosterSMEcollaborationswithlargeenterprisesinareasthatinvolveco-innovation, technology test-bedding, knowledge transfer and sharing of best practices. [For more details, contact: enterpriseOne at [email protected] or tel: 6898 1800 (local enterprises) or edB’s Client services Centre at 6832 6832 (non-local enterprises)]
c. Enhanced Partnerships for Capability Transformation (PACT) roll-out date: 1 april 2013
In collaboration with the Asian Development Bank, IE Singapore will expand the capacity of the TradeFinanceProgrammetoprovidecreditguaranteesthatwillfacilitategreatertradeflowsbetweenSingapore and emerging markets. IE Singapore will release details later in the year.
d. Support to Enhance Companies’ Access to Financing
Others
SPRING’s Assistance Schemes for SMEsInessence,SMEscannowlookforwardtoassistanceinfiveeasy-to-rememberbroadcategories of toolkit, voucher, tax incentive, grant and loan.
2013 Budget Measures for sMes
Assistance Scheme Description
Toolkits
Voucher
Tax Incentive
Grant
Loans
• Government-backedloansforworkingcapital,tradefinancing andequipmentfinancing,offeredthroughParticipatingFinancial Institutions. They are: - Local Enterprise Finance Scheme (LEFS) - Loan Insurance Scheme (LIS) - Micro Loan Programme (MLP)
• CapabilityDevelopmentGrant(CDG) supports up to 70% of the cost of productivity improvements and capability development that will result in greater enterprise competitiveness and business growth.• The10supportableareasare: - Business Innovation & Design - Business Strategy Development - Brand Development -EnhancingQuality&Standards - Financial Management - Human Capital Development - Intellectual Property & Franchising - Productivity Improvement - Service Excellence - Technology Innovation
• Productivity&InnovationCredit(PIC) is administered by IRAS• 400%taxdeductionofupto$400,000and/or60%cashpayoutof up to $100,000 expenses in productivity improvements and innovation. • Coverssixareas: - Acquisition or leasing of PIC IT and automation equipment; - Training; - Acquisition and in-licensing of Intellectual Property Rights (IPRs); - Registration of selected IPRs; - Research & Development; and - Approved design projects
• $5,000Innovation&CapabilityVoucher(ICV) to defray costs of engaging approved consultants & service providers to assist in: - Productivity improvements; - Human resources development; - Financial management; and - Innovation
• Self-helpguidesin the areas of: - Customer Service; - Human Resource Capability; - Financial Management; and - Marketing
© SPRING Singapore 5
Important Contacts
Information resource
Hotline: (65) 6898 1800Email: [email protected]: www.enterpriseone.gov.sg
EDC@ASME Association of Small and Medium Enterprises (ASME)
167 Jalan Bukit MerahTower 4, #03-13Singapore 150167Tel: (65) 6513 0388Email: [email protected]: www.edc-asme.sg
EDC@NorthEast (Managed by EDC@ASME)
Tampines Ave 5, #06-01NTUC Income Tampines Junction Singapore 529653Tel: (65) 6424 4000Email: [email protected]
EDC@SCCCISingapore Chinese Chamber of Commerce and Industry (SCCCI)
47 Hill Street, #09-00Singapore 179365Tel: (65) 6337 8381Fax: (65) 6339 0605Email: [email protected]: www.edc-sccci.sg
A*STAR Tel: (65) 6826 6111Email: [email protected]: www.a-star.edu.sg
Central Provident Fund (CPF) Tel: 1800-227 1188
Inland Revenue Authority of Singapore (IRAS)Tel: 1800-356-8622 (companies) Tel:(65)63513534(self-employed/partnership) Website: www.iras.gov.sg
International Enterprise Singapore (IE) Hotline: 1800 437 7673 Website: www.iesingapore.com
Land Transport Authority (LTA) Tel: (65) 6396 1947 Email: [email protected]
Ministry of Manpower (MOM) Tel: (65) 6438 5122 Website: www.mom.gov.sg
Singapore Economic Development Board (EDB)Tel: (65) 6832 6832 Email: [email protected] Website: www.edb.gov.sg
Singapore Workforce Development Agency (WDA) Tel: (65) 6883 5885 Email: [email protected] Website: www.wda.gov.sg
SPRING Singapore (SPRING)Hotline: (65) 6898 1800 Tel: (65) 6278 6666 Email: [email protected] Website: www.spring.gov.sg
EDC@SICCISingapore Indian Chamber of Commerce and Industry (SICCI)
SICCI Building31 Stanley StreetSingapore 068740Tel: (65) 6508 0147Email: [email protected]: www.edc-sicci.sg
EDC@SMCCI Singapore Malay Chamber of Commerce and Industry (SMCCI)
15 Jalan PinangSingapore 199147Tel: (65) 6293 3822Fax: (65) 6293 3905Email: [email protected]: www.edc-smcci.sg
EDC@SMF Singapore Manufacturing Federation (SMF)
2985 Jalan Bukit Merah Singapore 159457Tel: (65) 6826 3020Fax: (65) 6826 3021Email: [email protected]: www.edc-smf.sg
Enterprise Development Centres (EDCs) the edCs will be expanded to become sMe Centres.
6 © SPRING Singapore