With one of the world’s most business-friendly tax regimes, Singapore has emerged as a major financial and economic hub in Asia. Investors are also drawn by the efficient and cost-effective process to incorporate a company and the country’s transparent legal system.
Companies setting up in Singapore are eligible for various business and tax incentives that can help reduce their final corporate income tax rate.
Given the diverse tax incentives made available, foreign investors should consult registered local advisors to determine which incentives will be applicable to them and their sector.
The Wage Credit Scheme (WCS) is also part of the government’s Three-Year Transition Support Package. The scheme enables the government to co-fund the wage increases of Singaporean employees earning a gross monthly wage of up to S$4 thousand (US$2,945).
The program was introduced in the 2013 budget and set for three years. In the 2015 budget, the scheme was extended for another three years, and the 2018 budget extended the program further for the same period.
For 2021, the government’s co-funding ratio is set at 15 percent of the qualifying gross wage ceiling of S$5,000 (US$3,714).
The Job Support Scheme (JSS) was first introduced in the 2020 Budget to counter the economic impact caused by the pandemic by enabling the government to co-fund monthly wages for every local worker.
With the economy slowly reopening, this incentive is now only available to a select number of business sectors. These are:
Businesses in these sectors can receive wages support of 30 percent of the first S$4,600 (US$3,397) of gross monthly wages until November 21, 2021.
This article was first published by AseanBriefing which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected]