The Inland Revenue Authority of Singapore (IRAS) has published a summary of the income tax treatment of COVID-19 payouts to businesses and individuals, outlining what is taxable and not, as follows:
The following payouts are not taxable either because they are not income in nature or a specific exemption has been granted to exempt the payout from tax:
| No. | Payout | Purpose of Payout | Tax Treatment of Payout |
|---|---|---|---|
| 1 | Self-Employed Person Income Relief Scheme payout | To help eligible self-employed persons (SEPs) tide over this period of economic uncertainty. | Not taxable as the payout is meant to support individuals through the exceptional circumstances arising from the COVID-19 pandemic. |
| 2 | COVID-19 Support Grant | To support individuals who have lost their jobs as a result of the COVID-19 pandemic, while they find a new job or attend training. | Not taxable as the payout is meant to support individuals through the exceptional circumstances arising from the COVID-19 pandemic. |
| 3 | Workfare Special Payment (Under Care and Support package) | To provide support to Singaporeans during this period of economic uncertainty. | Not taxable as the payout is meant to support individuals through the exceptional circumstances arising from the COVID-19 pandemic. |
| 4 | Temporary Relief Fund payout | To support those who require immediate help to cope with basic living expenses as a result of the COVID-19 pandemic. | Not taxable as the payout is meant to support individuals through the exceptional circumstances arising from the COVID-19 pandemic. |
| 5 | NTUC Care Fund (COVID-19) payout | To provide one-off financial assistance to National Trades Union Congress (NTUC) union members who are in financial difficulty or retrenched due to the COVID-19 pandemic. | Not taxable as the payout is meant to support individuals through the exceptional circumstances arising from the COVID-19 pandemic. |
| 6 | Wage support for tourist guides licensed by the Singapore Tourism Board | To provide wage support for licensed tourist guides. | Not taxable as the payout is meant to support individuals through the exceptional circumstances arising from the COVID-19 pandemic. |
| 7 | Payout to Singaporean seafarers funded by the Maritime and Port Authority of Singapore under the Seafarers Relief Package | To assist Singaporean seafarers who are unable to secure shipboard employment. | Not taxable as the payout is meant to support individuals through the exceptional circumstances arising from the COVID-19 pandemic. |
| 8 | Jobs Support Scheme payout | To help enterprises retain local employees (Singapore Citizens and Permanent Residents) during this period of economic uncertainty. | Not taxable as the payout is to help employers retain their local employees by providing cashflow support or mitigate the financial impact of COVID-19 containment measures for employers and SEPs. |
| 9 | COVID-19 Quarantine Order Allowance scheme payout COVID-19 Leave-of-Absence (LOA) scheme payout COVID-19 Stay-Home Notice (SHN) scheme payout | To mitigate the financial impact for those who have been served, or whose workers have been served, a Quarantine Order, LOA or SHN. | Not taxable as the payout is to help employers retain their local employees by providing cashflow support or mitigate the financial impact of COVID-19 containment measures for employers and SEPs. |
| 10 | Courage Fund COVID-19 Relief schemes For more information on the schemes available, please refer to the National Council of Social Service. | To provide relief and support to low-income families, healthcare workers and other specified individuals who have supported the national response to COVID-19 and in doing so, contracted COVID-19. | Not taxable as these are unconditional gifts. |
The following payouts are taxable, being revenue receipts of a business, in accordance with general income tax rules:
| No. | Payout | Purpose of Payout | Tax Treatment of Payout |
|---|---|---|---|
| 1 | Temporary Housing Support for employers affected by Malaysia’s Movement Control Order | To help employers defray the additional costs of providing short-term housing to affected workers. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
| 2 | Senior Worker Support Package • Senior Employment Credit • CPF Transition Offset Scheme • Senior Worker Early Adopter Grant • Part Time Re-employment Grant | To support employment of senior workers. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
| 3 | Assistance scheme to defray third-party professional cleaning and disinfection costs for premises with confirmed COVID-19 cases | To provide assistance to defray cleaning costs for premises with confirmed COVID-19 cases. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
| 4 | Special relief for unhired taxis | To help taxi operators defray the costs of their unhired fleet of taxis. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
| 5 | Wage Credit Scheme (Including the enhancements made as part of the Stabilisation and Support Package in Budget 2020) | To support wage increases for Singaporeans. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
Source: IRAS