Singapore Budget 2018: Corporate income tax rebate raised to 40%, with higher cap; wage credit extended

The Inland Revenue Authority of Singapore building at Newton Road.
The Inland Revenue Authority of Singapore building at Newton Road.PHOTO: ST FILE

SINGAPORE - The corporate tax rebate for this year has been doubled to 40 per cent of tax payable and capped at $15,000, up from $10,000 previously, Minister for Finance Heng Swee Keat announced on Monday (Feb 19).

Mr Heng also extended the rebate to Year of Assessment 2019, but at a lower rate of 20 per cent and capped at $10,000.

The rebate, which will cost the Government an additional $475 million over two years, was among near-term cost relief measures for companies outlined by Mr Heng.

He also extended the Wage Credit Scheme for three more years, though government subsidies will taper off.

The scheme, which subsidises wage increases for Singaporean employees earning up to $4,000 monthly, will extend 20 per cent co-funding for 2018, 15 per cent for 2019 and 10 per cent for 2020.

The wage credit extension will cost the Government an additional $1.8 billion over the next three years.