Singapore’s new Budget was agreed by all the participants to its drafting that it should be targeted to specific industries, which is why the government has decided that companies would receive assistance based on a thorough evaluation of each sector. Manufacturing is the most important economic sector, however not all its segments have performed well last year and the government wants to even the gaps between these segments. Our Singapore company formation specialists can assist foreign investors seeking to open businesses in the manufacturing industry.
If the manufacturing industry registered an overall growth of 2% in 2016, it cannot be said the same for the construction and maritime segments of this industry which is why the Singapore government has decided to implement supplementary measures which would help these two sectors.
Concretely, the Singapore construction industry will benefit from funds worth a total of 700 million SGD. The amount will be available for private companies in Singapore interested in participating in infrastructure projects developed during 2017 and 2018. A significant amount of this money will be directed towards to the upscaling of public sports facilities.
Another 700 million SGD will be dedicated to the maritime industry in Singapore, considering last year the government imposed certain levies on companies hiring foreign workers.
Our local agents can assist foreign enterprisers interested in company registration in Singapore in the maritime or construction sectors.
Apart from the targeted support offered to the industries above, the 2017 Budget provides for a corporate tax rebate under the form of a cap rise from the current 20,000 SGD annual income to 25,000 SGD for the year of assessment 2017. The reduction is set at 50% of the tax to be paid by companies.
Singapore companies will benefit from a 20% reduced corporate tax rate which will be capped at 10,000 SGD. Companies will also benefit from additional tax deductions for hiring older workers.
The last measure proposed for all companies is the continuance of the SME Working Capital Loan Scheme which was supposed to end this year. However, it will continue for two more years.
If you want to open a company in Singapore and need information about all the support measures which will be implemented by the government, please contact us. We can also assist with the Singapore company formation procedures.