GOVERNMENT GRANTS & SCHEMES

TAX INCENTIVES

Start-ups that meet certain qualifying conditions do not need to pay tax on the first $100,000 of chargeable income (excluding Singapore franked dividends) for any of the first 3 years of tax assessment from Year of Assessment 2005). Additionally, there is a 50% tax exemption on the next $200,000 for each of the first three consecutive years.
This will help start-ups preserve their cash flow and profits.

Who is eligible?
1. Company should be incorporated in Singapore
2. A tax resident of Singapore in that YA
3. Has no more than 20 shareholders throughout the basis period for that YA where:
• all of the shareholders are individuals beneficially holding the shares in their own names; OR
• at least one shareholder is an individual beneficially holding at least 10% of the issued ordinary shares
of the company

 

START UP SG ASSISTANCE

Startup SG Founder provides mentorship and startup capital grant to first-time entrepreneurs with innovative business ideas. Enterprise Singapore will match $3 for every $1 raised by the entrepreneur.

Enterprise Singapore has appointed Accredited Mentor Partners (AMP) that will identify qualifying applicants based on the uniqueness of business concept, feasibility of business model, strength of management team, and potential market value.

Startup SG Tech grant fast-tracks the development of proprietary technology solutions, and catalyses the growth of startups based on proprietary technology and a scalable business model. Through Startup SG Tech, companies may receive early-stage funding for the commercialisation of proprietary technology.

As part of the Startup SG Equity scheme, government will co-invest with independent, qualified 3rd party investors into a startup. This scheme aims to stimulate private-sector investments into innovative, Singapore-based technology startups with intellectual property and global market potential.

Startup SG Accelerator supports incubators and accelerators in strategic growth sectors that take on the role of catalysing growth opportunities for high potential startups through their programmes, mentorship and provision of resources. Startup SG Accelerator will provide funding and non-financial support for these partners to further enhance their programs and expertise in nurturing successful startups.

Startup SG Talent pillar highlights schemes that foster a more conducive environment for promising global talent to set up innovative businesses in Singapore, and for startups to attract talent to be part of their team. Schemes under this pillar include: EntrePass, T-Up and SME Talent Programme (STP) for Startups.

Startup SG Infrastructure provides startups with the spaces that they need to grow, experiment and flourish.
JTC LaunchPad @ one-north is master developed by JTC, and is an initiative supported by A*STAR, IMDA, NRF and Enterprise Singapore. It is a vibrant and nurturing environment for startups and enablers in the biomedical sciences, infocomm, media, cleantech, electronics and engineering industries.

Startup SG Investor pillar highlights tax incentives for individuals or fund management companies that are actively investing in startups and/or other Singapore companies.

Startup SG Loan pillar highlights Government-backed loans for your working capital, equipment/factory financing and trade financing needs, offered through Participating Financial Institutions. See which loan suits you best:

 

ENTERPRISE FINANCING SCHEME

Enterprise Singapore’s existing financing schemes will be streamlined into one umbrella scheme known as the Enterprise Financing Scheme (EFS). EFS will enable Singapore enterprises to access financing more readily throughout their various stages of growth.

Enterprise Financing Scheme allows SMEs to access loans to develop new capabilities, create new products or expand your business overseas.

It covers six areas to address enterprises’ financing needs. Enterprise Singapore will share the loan default risk in the event of enterprise insolvency with the Participating Financial Institutions.

1. SME Working Capital Loan
Finance daily operational cashflow needs.

2. SME Fixed Assets Loan
Finance the investment of domestic and overseas fixed assets.

3. Venture Debt Loan
Finance the growth of innovative enterprises using Venture Debt and Warrants.

4. Trade Loan
Finance trade needs.

5. Project Loan
Finance the fulfilment of secured overseas projects.

6. Mergers & Acquisitions Loan
Finance the acquisition of target enterprises with the intent of internationalisation.

To qualify for the EFS, you need to:

• Be a business entity that is registered and physically present in Singapore.
• Have at least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership.
• Have a Maximum Borrower Group revenue cap of S$500 million for all companies.

For “SME Working Capital” and “SME Fixed Assets”, SMEs refer to companies with a group revenue of S$100 million or maximum employment of 200 employees.

Temporary Bridging Loan Programme

The Temporary Bridging Loan Programme (TBLP) provides access to working capital for business needs.
As announced at Supplementary Budget 2020, eligible enterprises may borrow up to $5 million under the TBLP, with the interest rate capped at 5% p.a., from Participating Financial Institutions (PFIs). The Government will provide 80% risk-share on these loans.

The TBLP started in March 2020, and is available until 31 March 2021. Interested enterprises can apply directly to the PFIs.

CAPABILITY BUILDING

Enterprise Development Grant (EDG) is a new initiative targeting Singapore companies to grow and transform. Previously known as Capability Development Grant (CDG), this grant supports projects that help to elevate your business, innovate or venture overseas under three core pillars;

1. Core Capabilities strengthen business foundations through projects such as Business Strategy Development, Financial Management, Human Capital Development, Service Excellence and Strategic Brand and Marketing Development.

2. Innovation and Productivity supports companies that are seeking new areas of growth and to make routine tasks more efficient through projects such as Automation, Process Redesign and Product Development.

3. Market Access supports Singapore Companies to defray costs of expanding into overseas markets through projects such as Mergers and Acquisitions (M&A), Overseas Marketing Presence, Pilot Project and Test Bedding and Standards Adoption.

The grant funds qualifying project costs namely third party consultancy fees, software and equipment and internal manpower cost.

As announced at Supplementary Budget 2020, the maximum support level will be raised to 80% from 1 April 2020 to 31 December 2020.

For enterprises that are most severely impacted by COVID-19, the maximum support level may be raised to 90% on a case-by-case basis.

Applications will be assessed by Enterprise Singapore based on project scope, project outcomes and competency of service provider. Companies applying for EDG support for consultancy-related costs must engage management consultants with Enterprise Singapore- recognised certification.

For further clarification please contact SME Centre@SICCI.

SMEs GO DIGITAL

SMEs Go Digital by Infocomm Media Development Authority
To support local SMEs, Infocomm Media Development Authority (IMDA) has developed an array of schemes which are tailored to their specific needs.

Examples:

Optimising the deployment of field workers (cleaners, maintenance, delivery, inspectors, etc.) through higher visibility of needs and availability of workers
• Better use of logistics vehicles through smart queue systems and information from traffic systems
• Smarter automation through the use of sensors and robots in F&B, retail, construction and transport
• New business from the Smart Environment as Singapore uses more energy management and sustainable environment technologies (such as smart lighting, emission detection, etc.)

The SMEs Go Digital programme is designed to assist SMEs to build stronger digital capabilities and deploy digital technologies based on the SME’s level of digital readiness.

For a start, SMEs can approach any SME Centre for basic Infocomm advice.

Level of Digital Readiness – Support available under SMEs Go Digital

Basic – SME Centres will provide advice on IMDA pre-approved off-the-shelf digital solutions supported by Government grants. SMEs may also refer to the pre-approved list of proven digital solutions and contact the identified solutions provider directly
Should the SMEs require more advanced advice, SME Centres will refer the SMEs to the SME Digital Tech Hub for more tailored support

Advanced – SME Digital Tech Hub will provide SMEs with more advanced advice in areas such as data analytics, cybersecurity and business transformation.
IMDA will also work closely with SMEs who are paving the way for their peers in deploying digital technologies such as smart sensors and autonomous systems in their sectors

As announced at Supplementary Budget 2020, Productivity and Solutions Grant (PSG) will be enhanced to encourage enterprises to continue their digitalisation and productivity upgrading efforts. The maximum funding support level will be raised to 80% from 1 April 2020 to 31 December 2020. The scope of generic solutions will also be expanded to help enterprises implement COVID-19 business continuity measures:

• Online collaboration tools
• Virtual meeting and telephony tools
• Queue management systems
• Temperature screening solutions

The list of readily adoptable solutions can be found in Tech Depot.

In partnership with IMDA, the scope of PSG has been enhanced to include Laptop-Bundled Remote Working Solutions for eligible enterprises from 17 April until 31 December 2020.

To find out more, please click here.

BUDGET 2020

The Covid-19 pandemic has brought unprecedented challenges to people, society and businesses. Budget 2020 was announced to help business cope amidst these challenges. To help businesses preserve their capacity and capabilities, the government announced, Unity Budget, Resilience Budget, Solidarity Budget and Fortitude Budget. Here’s a breakdown of the support businesses can receive;

Budget 2020 Overview
Budget 2020 Summary Sheet
MTI Budget Booklet
Resilience Budget
Supplementary Budget
Solidarity Budget
Solidarity Budget booklet
Fortitude Budget