Singapore Budget 2024: 7 Key Takeaways for SMEs and Business Owners

Singapore Budget 2024 contains several financial measures to support businesses, households, and individuals. Here are the key highlights:

1. Support for Businesses: The new Enterprise Support Package will allocate SG$1.3 billion to assist companies in managing rising costs. This includes a 50% corporate income tax rebate, with a cap of SG$40,000, and a minimum of S$2,000 in cash payouts for companies that hired local employees in 2023.
2. Enhanced Financing: The Enterprise Financing Scheme will see improvements to aid Singaporean enterprises’ financing needs. The maximum working capital loan quantum will be permanently raised to SG$500,000, offering greater financial flexibility to SMEs.
3. Investment in Technology and Innovation: With over SG$1 billion allocated over the next five years, Singapore aims to become an AI hub. This investment will focus on AI compute, talent development, and industry advancement, presenting opportunities for SMEs to leverage emerging technologies.
4. Workforce Support: The Workforce Income Supplement scheme will undergo enhancements, benefitting lower-wage senior workers and raising the qualifying income cap. These measures aim to support both businesses and employees amidst evolving economic landscapes.
5. Local Enterprise Development: Reaffirming its commitment to bolstering local enterprises, the government will enhance existing schemes for small and medium-sized enterprises (SMEs). Initiatives include grants to harness technology and customised support for SMEs to scale up, fostering collaboration with multinational firms through the PACT scheme.
6. Corporate Tax: Under the Base Erosion and Profit Shifting (BEPS) 2.0 framework, Singapore is set to introduce two components: i) Impose a minimum effective tax rate of 15% on the overseas profits of multinational enterprise (MNE) groups with Singapore as their parent entity. ii) MNEs to pay a minimum effective tax rate of 15% on their Singapore profits.
7. Support for Seniors and Families: Measures to promote active ageing and enhance social connectivity are introduced under Age Well SG. Additionally, financial aid and property-related tax adjustments aim to alleviate cost-of-living concerns and support ageing Singaporeans.

Summary

As SMEs and business owners navigate the evolving economic landscape, understanding and leveraging these Budget 2024 initiatives can pave the way for sustainable growth and resilience. Stay informed, adapt, and seize the opportunities presented to thrive in Singapore’s dynamic business environment.

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