Singapore extends levy rebate and levy waiver for business employers
The majority of the 15,000 firms in the construction, marine shipyard and process sectors continue to face financial difficulties as they are unable to resume work due to Covid-19 restrictions. Added to that the situation is likely to persist until all dormitories are cleared of the virus this month.
With payments tied to completion milestones and high overheads, cash flow has become a major concern for many firms, and the extension of the waiver and also levy rebates is meant to ensure that these sectors retain enterprise capabilities to emerge stronger from the Covid-19 crisis.
The government had announced (over several announcements in the past few months) that foreign worker levies for employers of Work Permit and S-Pass holders would be waived for payments due in the months of April, May and June 2020. The most recent iteration of announcements stated that for July 2020, there would be a 50% waiver of the levy.
In the latest announcement posted on the Ministry of Manpower’s website (1 August 2020), the waivers have been extended again.
Latest levy rebate business employer
Employers will receive $375 for August and September 2020 for each S Pass or Work Permit employed as at 1 August 2020 and 1 September 2020 respectively. This is provided they had paid February 2020’s foreign workers’ levy (due in March 2020).
The $375 FWL rebate will replace the existing $90 FWL rebate for each Work Permit holder, announced by the government on 27 June 2020 to help firms adjust to more stringent Safe Management Measures. Firms in the Construction, Marine Shipyard and Process sectors will continue to receive a $90 FWL rebate monthly for October 2020 until December 2021. Closer to December 2021, the government will decide if there is a need to further extend the $90 FWL rebate by another year to December 2022.
The $375 foreign worker levy rebate for August 2020 will be processed and credited as follows:
- Companies with PayNow Corporate accounts will receive the rebate on 11 September 2020.
- Companies without PayNow Corporate accounts can expect to receive the rebate by cheque (mailed to the employer’s ACRA-registered address) by 5 October 2020.
The $375 foreign worker levy rebate for September 2020 will be processed and credited as follows:
- Companies with PayNow Corporate accounts will receive the rebate on 9 October 2020.
- Companies without PayNow Corporate accounts can expect to receive the rebate via cheque by 2 November 2020 (cheque will be mailed to employer’s ACRA-registered address from 19 October 2020).
Latest levy waiver for business employer
As part of the Fortitude Budget, all firms in the construction, marine shipyard and process sectors received a 100% levy waiver for levies due in June (i.e. May’s levy) and a 50% levy waiver for levies due in July 2020 (i.e. June’s levy).
The government will be extending the levy support with full levy waiver for levies due in July, August and September 2020. You do not need to apply for the waiver.
It will be tapered down to 75% levy waiver due in October 2020, then 50% levy waiver due in November 2020, and 25% levy waiver due in December 2020.
- July 2020: 100% waiver (instead of 50%)
- August 2020: 100% waiver
- September 2020: 100% waiver
- October 2020: 75% waiver
- November 2020: 50% waiver
- December 2020: 25% waiver.
Receiving the levy rebate by PayNow Corporate
For eligible business employers, you should sign up for PayNow Corporate as soon as possible, in order to receive the levy rebate expeditiously.
Your bank must approve your PayNow Corporate account at least one day before the date of disbursements.
For 1st round of levy rebate disbursement (as announced on 6 April 2020) – By 29 April 2020 to receive on 30 April 2020.
For 2nd round of levy rebate disbursement (as announced on 23 April 2020) – By 28 May 2020 to receive on 29 May 2020; By 18 June 2020 to receive 19 June 2020.
For 3rd round of levy rebate disbursements (as announced on 26 May 2020) – By 8 July 2020 to receive on 10 July 2020; By 12 August 2020 to receive on 14 August 2020.
