A one-off cash grant will be given to all companies for YA 2012. The grant is pegged at 5% of the company’s YA 2012 revenue, capped at $5,000. To enjoy the cash grant, the company must have made CPF contributions (who would have to be a Singaporean or permanent resident) for at least one employee during the relevant accounting period for YA 2012.
However the dormant and inactive companies are not eligible for the cash grant and the definition of employee above excludes the shareholder of the company. IRAS has clarified that the SME cash grant is not taxable.
The SME Cash Grant shall provide some relief to companies, especially SMEs which are facing rising operating costs.