Logistics & Transportation − Unity + Resilience + Solidarity Budgets

Within a short few months, COVID-19 has spread exponentially round the world. Singapore Government in recognition of the severity of the impact of COVID-19 on businesses and workers has with quick successions announced two further stimulus packages following the main Unity Budget announcement on 18 February 2020. On 26 March 2020, the Resilience Budget was announced. This was followed in less than two week by Solidarity Budget announcement on 6 April 2020 as Singapore enters into a partial lockdown the following day. Summarised below are the key cash flow measures and cost support announced in the three Budget Speeches relevant to the Logistics and Transportation sector.

HELPING ON CASH FLOW AND COST SUPPORT

Corporate Income Tax (CIT)

  • CIT rebate of 25%of tax payable, capped at $15,000, for Year of Assessment (YA) 2020
  • Automatic extension of interest-free instalments by two more months for CIT payments on estimated chargeable income filed within three months from financial year end
  • Automatic 3-month deferment of CIT payments due in April, May and June 2020; to be collected from July 2020
  • Allow unabsorbed capital allowances and trade losses for YA 2020 to be carried back up to three immediate preceding YAs instead of one immediate preceding YA, capped at $100,000
  • Option to accelerate write-off of cost of acquiring plant and machinery in FY2020 over two years
  • Option to accelerate deduction of renovation and refurbishment expenses incurred in FY2020 in one YA

Job Support Scheme (JSS)

  • 75% cash grant on gross monthly wages, capped at $4,600, of every local worker (Singapore Citizens and Permanent Residents) in employment for month of April 2020
  • For remaining months May to July 2020, support levels differentiated by sector, capped at gross monthly wage of $4,600:
    • 75% for the aviation and tourism sectors
    • 50% for food services sector
    • 25% for all other sectors
  • First JSS payout will be brought forward to be paid in April 2020 instead of end May 2020

Wage Credit Scheme

  • Increased level of co-funding by Government of 20% and 15% on qualifying wage increases in 2019 and 2020 respectively
  • Qualifying gross monthly wage ceiling increased to $5,000 for 2019 and 2020

Property Tax Rebate

  • A rebate, the percentage of which is dependent on type of commercial property, will be granted for property tax payable for 2020
    • 100% for qualifying commercial properties (e.g. hotels. serviced apartments, shops and restaurants)
    • 60% for Integrated Resorts
    • 30% for all other non-residential properties (e.g. offices and industrial properties)
  • One month rental waiver for industrial, office and agriculture tenants of Government agencies

Foreign Worker Levy (FWL)

  • Deferral of FWL increase for Marine Shipyard for another year
  • The monthly FWL due in April 2020 will be waived
  • FWL rebate of $750 in April 2020 for previous levies paid in 2020 for each Work Permit or S Pass holder

CREDIT SUPPORT

  • Increase of Government risk share from 80% to 90% for the following types of loans initiated from 8 April 2020 to 31 March 2021
      Loan cap
    $ million
    Enterprise Financing Scheme -SME Working Capital Loan 1
    Enterprise Financing Scheme - Trade Loan 10
    Temporary Bridging Loan Programme 5
  • 80% subsidy for loan insurance premiums under Loan Insurance Scheme
  • Option available to SMEs to defer principal payments on secured term loans till end of 2020

TARGETED SUPPORT FOR SPECIFIC INDUSTRIES

Land Transport Aviation Sector Marine Sector

Point-to-Point Support Package

  • Special relief fund payment for eligible taxi main hirers and Private Hire Car (PHC) drivers of $300 per vehicle per month from May to September 2020
  • Taxi and PHC operators licence fee waivers will be extended for another 6 months
  • One-time waiver of $100 PHC vehicle outward conversion fee from May to September 2020

Relief for Private Bus Owners

  • One year road tax rebate and six month waiver of parking charges at government-managed parking facilities for private bus owners
  • Nine-month waiver for Class 2 Bus Service Licence fees
  • Enhanced course fee subsidy and absentee payroll rates for Land Transport sectors
  • 75% cash grant support under JSS (see above) for airlines, airport ground handlers and airport operators
  • $350 million Enhanced Aviation Support Package to fund measures such as rebates on landing and parking charges, rental relief for airlines, ground handlers and cargo agents
  • Payment deferral for certain fees due to CAAS between 1 April 2020 and 31 March 2021 by up to one year
  • 100% property tax rebate for Changi Airport
  • 50% port dues concession to cruise ships and regional ferries from 1 March 2020 to 31 December 2020
  • Additional 35% rebates on counter rental and overnight berthing for regional ferry operators for 3 months from March 2020
  • 100% waiver of public licence fee for Passenger Terminal Operators
  • 100% property tax rebate for year 2020 for Singapore Cruise Centre, Marina Bay Cruise Centre Singapore and Tanah Merah Ferry Terminal

 

Lee Mong Sheong, Partner
T +65 6594 7865
[email protected]

Cindy Lim, Partner
T +65 6594 7852
[email protected]

Koh Puay Hoon, Partner
T +65 6594 7820
[email protected]

William Chua, Partner
T +65 6594 7860
[email protected]

Hsu Chong Hoe, Director
T +65 6594 7861
[email protected]