The worldwide COVID-19 outbreak has a growing impact on the economy. We know this is a difficult time for SMEs and Micro SMEs. To make things as simple as possible, we have put together some useful resources and information to help you navigate these challenging times.
(updated with the additional support announced on with the Fortitude Budget on 27 May 2020)


Steps You Can Take Today


The Jobs Support Scheme (JSS) was launched in Budget 2020 and enhanced in the  Resilience and Solidarity Budgets.

Under the JSS, the Government will co-fund the first $4,600 of gross monthly wages# paid to each local employee for 9 months.

(New) Extended for 1 more month to cover wages in August 2020 (will be paid out in Oct 2020), bringing total coverage to 10 months of wages. 

The JSS provides employers with between 25% and 75% wage support for the first $4,600 gross monthly wage paid to each local employee (including shareholder-directors). Employers do not need to apply for the JSS. The cash grant will be computed based on CPF contribution data.

(new) For firms that are not allowed to resume operations, the Government will continue providing wage support at 75% until August 2020 or when allowed to reopen, whichever is earlier.

(new) Increased support for some affected sectors (e.g.aerospace, retail, marine, and offshore) from 25% to 50% or 75%.

For more information, click here.

Notes:

  • Gross monthly wages include employee CPF contributions, but exclude employer CPF contributions
  • Employers who put local employees on mandatory no-pay-leave or retrench them will not be entitled to the enhanced JSS payout for those employees.
  • Employers do not need to apply for the JSS. IRAS will notify eligible employers by post of the tier of support and the amount of JSS payout payable to them.

Automatic Deferment of Corporate Income Tax (CIT) Payments

To further ease cashflow, businesses and self-employed persons will be granted a three-month deferment on income tax payments.

All companies with corporate income tax payments due in April, May and June will be granted an automatic three-month deferral, and the payments will be collected from July instead.

Companies can expect to receive a letter from IRAS by 15 April 2020. Those on GIRO and have ongoing CIT payments due in April, May and June 2020 can view their revised instalment plans at myTax Portal in early May 2020.

Read more.

The Productivity Solutions Grant (PSG)

For companies looking to kick-start their adoption of technology with pre-qualified IT solutions and equipment that enhances productivity.

As announced at Supplementary Budget 2020, PSG will be enhanced to encourage enterprises to continue their digitalisation and productivity upgrading efforts. The maximum funding support level will be raised to 80% from 1 April 2020 to 31 December 2020. Check out ABSS Accounting Software packages that are pre-approved by PSG.

E-Invoicing Registration Grant (ERG)

IMDA will set aside $10 million to help businesses (a) implement work-from-home plans by eliminating the need to handle paper invoices in the short term; and (b) improve operational efficiency, and build a strong foundation for digitalising other business processes in the long term.

Businesses that register on the Nationwide E-invoicing Network by 31 Dec 2020 will receive a one-time grant of $200. Once registered, businesses will be able to send and receive e-invoices through the network. Businesses can register through more than 50 Peppol-ready accounting and enterprise resource planning (ERP) solutions. They will receive their grant via PayNow Corporate.

Click here to learn more.

While the Government has announced measures from the first $4B Stabilisation and Support Package to the $48B Resilience Budget, businesses are also seeking assistance from financial institutions like our partner, DBS.

To help our valued users tide over this challenging time, we have partnered with DBS Bank to offer the following support to help address your cash flow needs and cover gaps in your operational expenses.

For hassle-free funding:

DBS Digital Business Loan supported by the Resilience Budget 2020

  • No financials needed for funds up to S$200,000
  • Service interest for the first 12 months – stretch your repayment period up to remaining 48 months
  • Waiver of the processing fee

Click here for more information, or apply online now .

*Terms and Conditions apply.

For collateral-free funding:

Enhanced SME Working Capital Loan

  • No collateral needed
  • High loan amount of up to S$1,000,000 with competitive rates
  • Service interest for the first 12 months – stretch your repayment period up to remaining 48 months

Click here for more information, or apply online now with your DBS relationship manager.

*Terms and Conditions apply.

For higher loan amount:

Government assisted Temporary Bridging Loan

  • No collateral needed
  • High loan amount of up to S$5,000,000 at group level open to all industries
  • Service interest for the first 12 months – stretch your repayment period up to remaining 48 months

Click here for more information, or apply online now with your DBS relationship manager.

*Terms and Conditions apply.

Conferencing systems are no longer the high-end IT tools of large enterprises. Today, there is a range of free conferencing apps that anyone can access. Video conferencing meetings can change the businesses connect with their employees and customers remotely or working from home. You can hold online video chats with groups of people, share your desktop to give a presentation or collaborate on documents.

Check out the ABSS top pick of free video conferencing tools:


Additional Relief & Support


How to Monitor Cash Flow

You can monitor your cash flow with Financio . We've prepared the HOW-TO notes for your easy reading.

Financio Premium
Enjoy 17% OFF on Financio Premium annual subscription. Sign up now!

Financio Academy
Explore our comprehensive online product training with the objective to help SMEs overcome various accounting challenges.


Continuous Learning & Development


We have FREE webinars available. Join now and learn how to better manage your business finances.

WebinarHostDateTimeRegister Links
Marketing Series: Creating Killer Content with Digital FansDoerscircle25-June-204pmRegister Now
Financio 101: The Ins and Outs of Accounting with FinancioFinancio Academy30-June-2011amRegister Now
Networking: Learn, collaborate and network with other EntrepreneursDoerscircle
30-June-201pmRegister Now
Financio 101: The Ins and Outs of Accounting with FinancioFinancio Academy7-July-2011amRegister Now
Financio 101: The Ins and Outs of Accounting with FinancioFinancio Academy14-July-2011amRegister Now
Financio 101: The Ins and Outs of Accounting with FinancioFinancio Academy21-July-2011amRegister Now

Additional Resources


rental relief

For 2020, qualifying commercial properties that have been more badly affected by the COVID-19 outbreak will pay no Property Tax. These include hotels, serviced apartments, tourist attractions, shops, and restaurants. 

Businesses in other non-residential properties such as offices and industrial properties affected will be granted a Property Tax Rebate of 30% for the year 2020.

IRAS will send out the rebate notices by 31 May 2020. Property owners can expect to receive their refunds by 30 June 2020.

(New) 

The government will provide a cash grant to offset the rental costs of SME tenants, which will be disbursed through property owners. The grant will cost the government about $2 billion in total, and will be disbursed automatically from the end of July.

Including the Property Tax Rebate for 2020, Government will

  • Offset 2 months’ rental for qualifying SME tenants of commercial properties
  • Offset 1 month’s rental for qualifying SME tenants of industrial and office properties

The government tenants to received additional rental waivers: 

  • 2 more months for hawkers and commercial
  • 1 more month for industrial, office and agriculture

 

Read More >>

The foreign worker levy waiver and rebate will be extended up to 2 months for businesses who are not allowed to resume operations on-site immediately after the circuit breaker period. Such businesses include those in the construction, marine and offshore, and processing sectors. The waiver and rebate are as follows:

  • June 2020 – 100% waiver and S$750 rebate.
  • July 2020 – 50% waiver and S$375 rebate.

During this challenging time, some SMEs can still operate in the short term even if they are making losses but not if they run out of cash. Those that will survive the COVID-19 crisis are the ones that can effectively manage their costs, capital and most importantly, cashflow.

Take a light read on how you can improve your cash flow management skill.

The Digital Resilience Bonus aims to uplift the digital capabilities of a broad base of enterprises. For a start, DRB will be targeted at the Food Services and Retail sectors, which are more affected by safe distancing requirements in the reopening of the economy.

The DRB is given on top of enhanced digitalisation assistance provided under the SMEs Go Digital programme. Food Services and Retail enterprises that have PayNow Corporatee-invoicing, and use pre-defined categories of digital solutions for Business Processes, Digital Presence and Data Mining and Analytics can receive bonus payouts of up to $10,000.

Find out more about DRB, click here.