As announced in Budget 2012, for Year of Assessment (YA) 2012, companies (including registered business trusts) will receive a one-off, non-taxable SME Cash Grant. This Cash Grant is given to help companies offset the high costs which may persist in the business slowdown.
To be eligible for the SME Cash Grant, the company must have made CPF contributions for at least one employee who is not a shareholder of the company during the basis period for YA 2012.
Computing SME Cash Grant
The SME Cash Grant is pegged at 5% of total revenue for YA 2012*, subject to a cap of $5,000. The revenue refers to the main income source declared in the company’s YA 2012 income tax return.
* If the revenue as per the company's accounts is for a period that covers two YAs, one of which is YA 2012, please provide a breakdown of the revenue for the basis period relating to YA 2012 in the tax computation.
Company A was incorporated in Singapore on 15 Apr 2010 and commenced business on the same day. The financial year end of the company is 30 Jun.
Company A’s first set of accounts is prepared for the period from 15 Apr 2010 to 30 Jun 2011.
As the first set of accounts covered a period of more than 12 months, there are two relevant YAs as follows:
|2011 (1st YA)
15 Apr 2010 - 30 Jun 2010
|2012 (2nd YA)
1 Jul 2010 - 30 Jun 2011
The company has to prepare tax computations for the two YAs for submission in 2012. It has to also provide a breakdown of its revenue for the basis period from 1 Jul 2010 to 30 Jun 2011 in the tax computation for YA 2012. Where the breakdown is not provided, IRAS may use the time apportionment basis to compute the applicable amount of revenue.
Payment of SME Cash Grant
Companies do not need to apply for the SME Cash Grant. Upon the company’s filing of the YA 2012 income tax return, IRAS will compute and advise the SME Cash Grant amount.
IRAS has started disbursing the SME Cash Grant since the last week of Sep 2012. Companies are encouraged to submit their income tax returns as soon as possible if they wish to receive the SME Cash Grant early. Eligible companies can expect to receive the SME Cash Grant within four months from the submission of their YA 2012 income tax return. The YA 2012 SME Cash Grant will cease on 31 May 2014 and no SME Cash Grant will be disbursed for any company’s YA 2012 filing that is received after 31 May 2014.
Frequently Asked Questions (FAQs)
For more details, please refer to the FAQs on SME Cash Grant for YA 2012 (72KB).