21 February 2012
SMEs wishing to find out more on the SME Cash Grant as announced in Budget 2012 can now do so via the IRAS website.
Eligible companies will receive a once off, non-taxable grant pegged at 5% of their total revenue, subject to a cap of $5,000. To qualify for the grant, CPF contributions for at least one employee who is not a shareholder of the company during the basis period for YA 2012, must be made.
IRAS has also clarified the position with regard to those companies with revenues as per the accounts for a period that covers two YAs, one of which is YA 2012. For eg where a company was incorporated on 15 April 2010 with a year end of 30 June, the first set of accounts would span two YAs (ie from 15/4/2010 to 30/6/2010 and from 1/7/2010 to 30/6/2011). In such a case, the company has to provide the revenue breakdown for the basis period relating to YA 2012 in the tax computation. Where the breakdown is not provided, IRAS may use the time apportionment basis to compute the applicable amount of revenue.
More payment details will be released by IRAS in March 2012.
Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.