SINGAPORE SME CASH GRANT AND CORPORATE INCOME TAX
For Year of Assessment (YA) 2011, companies will receive:
a) A Corporate Income Tax (CIT) Rebate; or
b) A SME Cash Grant,
whichever is the higher amount.
Corporate Income Tax (CIT) Rebate
A 20% CIT rebate, subject to a cap of $10,000, will be allowed to each company for YA 2011.
The CIT rebate will be computed on the tax payable amount after deducting tax set-offs (e.g.
double tax relief and unilateral tax credit).
One-Off SME Cash Grant
Recognising that many small companies are not taxable and would not be able to benefit
from the CIT rebate, a one-off SME cash grant of 5% on total revenue for YA 2011, subject to
a cap of $5,000 will be separately given to them.
To be eligible for the SME cash grant, the company must have made CPF contribution for at
least one employee during the basis period of YA 2011. If no CPF contribution is made, the
company will only be eligible for the CIT rebate;
Companies will receive automatically the higher of CIT rebate amount or the SME cash grant
amount. CIT rebate will be given if both amounts are the same.
Payment of CIT Rebate and SME Cash Grant
Companies do not need to apply for the CIT rebate or SME cash grant. The Singapore Tax
Authority (IRAS) will compute the amount of the CIT rebate or the SME cash grant which a
company will receive when companies file their income tax return (i.e. Form C).
IRAS will start disbursing the SME cash grant from Sept 2011 to companies. Companies can
expect to receive the SME cash grant within six months from the submission of the Form C.
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