SINGAPORE - A corporate income tax rebate has been extended until 2017, Finance Minister Tharman Shanmugaratnam announced on Monday.
Under the scheme, which was introduced in 2013, all companies receive a 30 per cent rebate on a portion of their payable tax.
While the rebate remains, the cap for the rebate will be lowered from $30,000 to $20,000 per year.
Aimed at helping firms cope with rising costs, it was due to expire this year.
The reduced cap ensures that SMEs are the main beneficiaries of the rebate, the minster said in his Budget speech.
Singapore's corporate tax rate is currently 17 per cent. The extension of the rebates is expected to cost the Government $800 million over two years.