Missed the Budget 2025 Announcements? Here’s What Singapore SMEs Need to Know Now

Didn’t follow the Singapore Budget 2025 announcements? You’re not alone — and you’re not too late. Many small business owners are now catching up, especially those seeking to align their accounting services with the latest changes. This year’s budget introduces key updates that directly impact SMEs, from tax reliefs and wage support to innovation grants and compliance expectations.

Here’s a clear and up-to-date breakdown of what matters most for Singapore’s small businesses.

1. Tax Rebates That Help Your Bottom Line

For the Year of Assessment 2025, the government is offering:

• A 50% Corporate Income Tax Rebate, capped at S$40,000 per company
  
• An additional S$2,000 cash payout for companies with at least one local employee in 2024
  
• A combined cap of S$40,000 for both
  

These measures ease the cost burden for SMEs. But to benefit, your profit records and employment data need to be clean, accurate, and well-documented.

2. Innovation Support Through the Enterprise Innovation Scheme (EIS)

If you’re investing in business improvements — whether it’s new technology, product development, or training — the EIS can help offset costs:

• Convert up to S$100,000 of qualifying innovation expenses into a non-taxable cash payout, at a 20% rate
  

Eligible expenses include R&D, patent registration, innovation projects approved by Enterprise Singapore, and accredited training programmes.

To tap into this, businesses must have proper documentation of expenses and clear tracking of qualifying activities.

3. Skills Development Credit for Business Transformation

The SkillsFuture Enterprise Credit (SFEC) has been extended, with a refreshed allocation:

• A new S$10,000 digital credit for eligible SMEs
  
• Can be used to offset approved training and enterprise transformation costs
  
• Valid until a redesigned version launches in late 2026
  

Planning to implement digital tools or retrain your team? Now’s the time. Financial tracking and clear budgeting will be key to using this support effectively.

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4. Progressive Wage Credit Scheme (PWCS): Higher Co-Funding in 2025

For SMEs supporting their lower-wage employees, the government is increasing its co-funding:

• 40% co-funding of eligible wage increases in 2025
  
• 20% co-funding in 2026 for sustained raises
  

This allows businesses to better reward loyal staff and manage wage growth responsibly. To claim, proper payroll records and consistency in wage reporting are essential.

5. Energy Efficiency Grant (EEG) for Greener SMEs

Going green can now save you money:

• Up to 70% co-funding, capped at S$30,000, for approved energy-efficient equipment
  
• Applies to sectors like food services, manufacturing, and retail
  
• Grant available until 31 March 2026
  

To qualify, businesses need to budget, document purchases, and track energy performance — all of which require solid financial records.

6. Compliance Expectations Are Increasing

Singapore continues to digitise business processes, with higher expectations for accuracy and punctuality:

• ACRA and IRAS are streamlining filings through digital-only platforms
  
• Enforcement is tightening — meaning late or inaccurate filings now carry greater risk
  

For SMEs, the message is clear: adopt efficient, reliable systems for accounting, tax filing, and regulatory compliance. Staying ahead of deadlines isn’t just good practice — it’s critical to avoiding penalties and disruptions.

Summary

Even if you missed the live updates, the Budget 2025 is still active — and the support measures are within reach. For SMEs, the key is staying organised, compliant, and aware of what applies to your business.

The right preparation can translate these schemes into real financial benefits from tax rebates and wage credits to innovation support and digital compliance. And that starts with having your financial house in order.

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