What has the government done to help individuals?
As COVID-19 pandemics has impacted and spread out all around the world. It forced the governments announced restrictions on movement, which also affect the employee would not able to work physically on their duties and slow the business and employment operation. Due to those pandemics, there are many business and individuals outside been negatively impact on their economy for their living and operation expenses. Therefore, the Ministry of Finance had introduced and provided various scheme and helps to individuals in order get through this pandemic.
1)Supports to Self-Employed Persons (SEPs)
All Singaporean employees and self-employed persons who received Workfare Income Supplement (WIS) payments in Work Year 2019 will receive a Workfare Special Payment (WSP) in 2020. Eligible lower income SEPs and Singaporean employees will receive a one-off cash payment of S$3,000, which will be paid over two equal payments of $1,500 each in 2020. Eligible self-employed people aged 37 and above who declared a positive net trade income for 2018 will be automatically notified via letter and SMS at end-May.
Also, SEP Training Supporting Scheme enhanced from $7.50 to $10 per hour starting from 1st May 2020, and extended until end-2020. There is not cap to how much training a SEP can sign up for. The government introduced this enhancement to encourages SEPs to attend training to improve their skills to maintain their competitiveness.
2) Supports to Low Incomer
- Temporary Relief Fund
For Singaporean who affected by the economic impact of COVID-19 and who need immediate financial help for basic living been provided cash assistance of $500, for 3 months, will credited to bank account. The cash support quantum will be based on the last-drawn monthly salary capped at $500. While, the eligibility criteria for the Temporary Relief Fund are as follows:
- Singapore Citizens or Permanent Residents aged 16 years and above.
- Suffered at least 30% loss of personal income due to COVID-19 at least 3 consecutive months
- Had a gross monthly household income of less than $10,000, OR a gross monthly per capita income of less than $3,100 prior to loss of job or income; AND
- Full-time students and NSFs should not apply
- COVID-19 Supporting Grant
From 1 May 2020 onwards, Singaporean who are unemployed due to COVID-19 can apply for the COVID-19 Support Grant, which provides a cash grant as followed:
| Apply From 4 May | |
| Unemployed due to retrenchment/ contract termination | Up to $800 monthly for 3 months + Employment and training support |
| Involuntary No Pay Leave (NPL) for at least 3 consecutive months | Up to $800 monthly for 3 months + Access to relevant courses subsidised by SSG |
| Apply From 11 May | |
| Experiencing reduced monthly salary of at least 30% for at least 3 consecutive months | Up to $500 monthly for 3 months |
Eligibility criteria for COVID-19 Support Grant:
- Singapore Citizens or PRs aged 16 years and above
- Unemployed due to retrenchment/contract termination as a result of COVID-19 after 23 Jan 2020
- Suffered at least 30% loss of personal income due to COVID-19 after 23 Jan 2020
- Had a gross monthly household income of less than $10,000, OR a gross monthly per capita income of less than $3,100 prior to loss of job or income; AND
- Live in a property with annual value of less than $21,000
- Not on Self-Employed Persons Income Relief Scheme (SIRS)
- Previously employed as full-time/ part-time permanent or contract staff
- NS men and interns are not allowed to apply
- The Courage Fund
A one-time lump sum of up to $1000, which depending on the household’s per capita income after being affected by COBID-19. This fund is targeted to help lower-income households whose family member had contracted COVID-19, OR are onStay-Home Notice (SHN), Mandatory Leave Absence (LOA), or Home Quarantine Order (HQO). The eligibilities criteria for The Courage Fund:
- Households with at least one Singapore Citizen or Permanent Resident whose family member(s) have contracted COVID-19, or are on SHN, mandatory LOA, or HQO
- Loss of complete or partial (at least 10%) household income due to COVID-19
- Prior household income of $3,900, or per capita household income of $1,350
***The Courage Fund is provided per household, not per individual. Also the application should be made with 6 month from the end of the SHN, LOA, HQO, or discharge from hospitalisation due to COVID-19, whichever is later.
3) Concession of YA2020 Tax Filing and Tax Payment System
IRAS align with the Government to announce automatic extension of tax filing and tax payment deadlines for Year of Assessment in objective of reduce both tax compliance and cash flow burden for companies and employees. The extension of tax filing and payment deadline as followed:
- Extension of tax filing deadlines for the Year of Assessment 2020
As part of support to individual taxpayer, IRAS provided an automatic extension of deadlines for tax filing, as following:
| Original Filing Deadline | Extended Filing Deadline | |
| Income tax for individuals (including sole proprietorship and partnerships) |
15 April 2020 (Paper-filing) 18 April 2020 (e-filing) |
31 May 2020 |
| Tax clearance for foreign employees | – | 30 June 2020 |
| Individual Tax Filing by Tax Agent | 30 June 2020 | 15 August 2020 |
- Deferment of Tax Payment for Individual Tax
| Support measures | |
| Self-Employed Individuals | Automatic 3 months deferment of individual income tax payments that are due in May, June and July 2020. No application is required. |
| Employees | Employees can opt to defer their individual income tax payments due in May, June and July 2020 by signing up for the deferment option. |
Our Comment:
The government introduced the grants support in order to provide support per individual and household for living expenses, as the COVID-19 restriction been seriously slow down the daily business operation, which indirectly the effect the individual’s income salary due to the business performance. As IRAS align with the Government’s objective to introduced tax extension and deferment payment for the tax-resident employee. However, those non-residents employee who were on business trip and extended their staying period due to COVID-19 Circuit Breaker in Circuit Breaker will be taxed and report in Singapore.