Update to Income Tax Treatment of COVID-19-Related Payouts to Businesses

The Inland Revenue Authority of Singapore (IRAS) published an updated version of its overview of the Income Tax Treatment of COVID-19-Related Payouts to Businesses and Individuals on 7 December 2020. It was first published in July 2020.
Here is the overview of the payouts that are not taxable either because they are not income in nature or a specific exemption has been granted to exempt the payout from tax, as well as payouts that are taxable, being revenue receipts of a business, in accordance with general income tax rules.
Payout | Reason for Payout | Taxability |
---|---|---|
Jobs Support Scheme Payout | To help enterprises retain local | Not taxable as the payout is to help employers retain their local employees by providing cashflow |
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. |
Senior Worker Support Package | 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. |
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. |
Wage Credit Scheme (including the enhancements made as part of the Stabilisation and Support Package in Budget 2020) | To support wage increases for Singaporean workers. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
Jobs Growth Incentive | To provide wage support to eligible employers with new local hires between Sep 2020 and Feb 2021. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
Construction Restart Booster | To help construction firms defray costs in procuring additional materials/equipment to comply with COVID-Safe Worksite requirements. | Taxable as the payout received is to defray the operating costs of a business and is revenue in nature. |
Source: IRAS

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