The Birthday Budget extends a lot of support for companies in innovation and internalization. Companies will get more grant support for innovation, expansion overseas as well as mergers and acquisitions
Singapore (PRWEB) March 10, 2015
Singapore’s Budget Statement 2015, delivered in Parliament on February, emphasized the need for self-improvement through training and continuous education as a key step in the city-state’s efforts to increase productivity. By upgrading their capabilities, residents are able to improve their employment prospects. In the same vein, companies benefit from a deeper skills pool.
Analysis from company registraton portal Singapore-Incorporation.net indicates that this year’s Budget places greater on long-term goals for Singapore's economic and social future.
The portal further spotlights the main thrusts of the Budget:
Helping SMEs Create New Value and Internationalize
“The Birthday Budget extends a lot of support for companies in innovation and internalization. Companies will get more grant support for innovation, expansion overseas as well as mergers and acquisitions,” said Ms. Christine Lim, manager at Singapore-Incorporation.net.
In line with the Government’s push to drive greater productivity and innovation for startups, Budget 2015 introduces various objectives, such as enhancing the Capability Development Grants (CDG) to provide a more flexible support platform for SMEs to innovate and to internationalize.
The budget supports companies focusing on R&D, innovation and expanding into global markets. Promoting innovation within Singapore's business continues to be one of the Budget's priorities this year.
Enhanced support with various grants and schemes to SME’s include the National Research Fund, which invests in research and development (R&D), Double Tax Deduction for Internationalization Scheme, a new tax incentive (International Growth Scheme), and increase in co-investment cap for two schemes by SPRING -- the Startup Enterprise Development Scheme (SEEDS) and Business Angel Scheme (BAS).
“Besides extending the scheme, the Government has surprised the people by increasing the M&A tax allowance to 25% from 5% and lowering the qualifying shareholding threshold to 20%. This will be of significant help for SMEs and businesses which are seeking for inorganic growth and consolidation. Especially SMEs that are contemplating to restructure, acquire, merge/consolidate will benefit from this to be more competitive or gain a greater market share,” added Ms. Lim.
The Farsighted Budget invests in the future of Singapore with enhanced subsidies for training and a more progressive CPF scheme with increased taxes on the wealthy to help subsidize. For the year 2015, the income tax rebate of 50% will be provided with an annual cap of S$1,000.
Economic restructuring will be more fine-tuned and all Singaporeans especially those with lesser means - can look forward to greater security in retirement. The workforce will be equipped with skillsets required for the future.
The expansionary Budget, with Jubilee handouts for the middle class, and incentives aims to improve the productivity drive. The Budget extended the Transition Support Package, in terms of the Wage Credit Scheme and corporate income tax rebate for companies for another two years which was due to expire in 2015.
“Indeed, 2015 is a momentous year for Singapore, a golden jubilee, as it celebrates 50 of independence. The timely Budget 2015 is a comprehensive and meaningful Budget that gazes into Singapore’s future,” Ms. Lim concluded.
Click here to read more
Singapore Incorporation Online provides corporate services including the registration of companies and businesses in Singapore, compliance and tax advisory services and immigration services including application for work visas and other business related visas. Singapore Incorporation Online is a full-service corporate service provider company providing a full range of corporate, compliance, tax and immigration support services.
Phone: +65 6305 2414
Fax: +65 6305 2415