Traditionally, supporting measures for the coming financial year were announced in Singapore’s FY2024 Budget Statement delivered by Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong, on 16 Feb 2024.
The main measure, in our opinion, is a corporate tax rebate, as it is applicable to all companies registered in Singapore. The tax rebate is 50% capped by 40,000 Singapore Dollars per company.
Once the company's taxable income is 235,000 Singapore Dollars or less, it will get back 50 per cent of corporate income tax paid. Once the taxable income exceeds 235,000 Singapore Dollars, the amount of rebate will be 40,000 Singapore Dollars.
Small businesses benefit from the rebate the most, because for them relative value of money is the highest. This is not the first time the corporate income tax rebate given to Singapore companies.
Also, this is not the first time when the rebate is 50 per cent. However, this is the first time when the cap is 40,000 Singapore Dollars. It feels like a timely and adequate support in the period of increasing global economic unsertainty.
