28 Mar 2016
Missed the Singapore Budget Announcement on 24 March? Here are the relevant Budget Updates from ISCA's Twitter posts:
The Institute will also be releasing our Budget Update on some key areas of the Budget with implications on businesses in the April Issue of the IS Chartered Accountant Journal. Check back here at a later date or download the ISCA Journal App to be alerted once the April Issue is released.
Looking back at the findings and wishlist of businesses shared with Mr Liang Eng Hwa, Chairman, Government Parliamentary Committee (Finance, Trade & Industry); at the ISCA Pre-Budget Roundtable 2016, we found a number of correlations with the measures announced during the Singapore Budget 2016.
- No. 1 on the wishlist of businesses in the ISCA Pre-Budget Survey was for help in reducing costs.
- Singapore Budget 2016 measure: Higher corporate income tax rebate - from 30% to 50% of tax payable for 2016 and 2017, with a cap of $20,000 in rebates each year.
- Findings from ISCA Pre-Budget Survey indicate SMEs are heavily impacted by rising business costs, such as salaries and rental, and manpower constraints.
- Singapore Budget 2016 measure: Under the new SME Working Capital Loan scheme, the Government will help businesses secure loans of up to $300,000 from banks by sharing 50 per cent of the default risk of such loans with banks.
- Wishlist from ISCA Pre-Budget Survey Organisations wish that Budget 2016 can help them reduce rental cost, provide access to funding, and reduce training costs.
- Singapore Budget 2016 measure: The Business Grants Portal will be launched by the last quarter of 2016, which will bring together schemes from different agencies, and help companies identify which grants and schemes are relevant to them.
- The top three areas that businesses would like greater Government support when venturing overseas in the ISCA Pre-Budget Survey was for facilitation in market access and knowledge (66%); support and information regarding regulatory and tax in other countries (60%); and financial support to expand overseas (58%).
- Singapore Budget 2016 measure: IE Singapore is expected to support 35,000 to 40,000 companies to expand to markets overseas this year, up from 34,000 in 2015; & a range of tax and financial incentives were expanded, including the SME Mezzanine Growth Fund
In addition, compiled below are the Budget 2016 commentaries from the Big Four firms - Deloitte, EY, KPMG and PwC:
The 2016 Budget provides relief to businesses to weather the cyclical downturn and also addresses long-term structural issues confronting Singapore’s economy. Sweeteners will give SMEs added impetus to “Step Up, Scale Up and Go Out”. Rounding up the announcements were extensions and enhancements to incentives for the finance, insurance and maritime sectors. - Deloitte
Singapore Budget 2016 sets the stage to transform Singapore’s enterprises and industries, deepen innovation and partnerships, and strengthen the society. - EY
A finely-balanced Budget that recognises both social and business needs, it builds on our past successes in Singapore to create a brighter future. The various initiatives attend to the needs of our people, while supporting the growth ambitions of our local businesses. - KPMG
Budget 2016 contains measures that address both the cyclical headwinds arising from slowing demands in major markets, as well as the need for fundamental changes to transform the local economy. The Finance Minister also seeks to forge a closer partnership with citizens through grants and schemes for families, low wage workers and needy seniors. - PwC
ISCA’s annual Pre-Budget Survey was conducted at the end of 2015 to gather the views of the Chartered Accountant of
Singapore (CA (Singapore)) community with regard to their business outlook and wish lists for Budget 2016. This includes respondents from accounting firms and the business community at large. (Access the full ISCA Pre-Budget Survey 2016 Report here)
Findings from the Pre-Budget Survey were shared with Mr Liang Eng Hwa, Chairman, Government Parliamentary Committee (Finance, Trade & Industry) and Managing Director, Institutional Banking Group, DBS Bank, who was the Guest of Honour during the ISCA Pre-Budget Roundtable 2016, themed “Repositioning for Future Growth” held on 15 January 2016.
Held for the seventh year running, the Roundtable served as an invaluable platform to gather the views and insights of top management and business leaders of trade bodies, accounting firms and C-suite executives to discuss and provide feedback on the Singapore Budget & how Singapore can reposition for future growth. Please click here for the full article.
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