Rental support is one of the ways the Singaporean government has been helping SMEs cope with the pressure of COVID-19 pandemic. With the second phase of the circuit breaker lifting from June 19, the government has introduced yet another rental rebate for company tenants in Singapore.
What is the Rental Support for Singapore Companies?
Naturally, Singapore SMEs with physical storefront were the most affected by the pandemic. So, to help them with the money flow problems, the government has decided to pay the rent for two months.
Companies in the agriculture, commercial office, and industrial sectors will get rebates for a month. The rent money will be paid through the landlords by the government.
As of now, even if the economy is continuing after the second phase of the circuit breaker are lifting, companies are still going to have to wait for some time for their normal financial gains. So, the government has decided to give another rental waiver.
However, this time, the landlords will have to give the discount.
What is the Main Purpose of the Rental Waiver?
The rental waiver is not just to support Singapore SMEs, but to help everyone with probable money problems during the pandemic. Hence, if some landlords are not able to provide the rental rebates due to their own financial problems, they can apply to get their situation assessed by a credited assessor.
Furthermore, commercial property owners are still going to get the property tax rebates, which can be up to 100% depending on the sector of the business as promised by the government.
What Are the Requirements SMEs Should Fulfil Before Getting the Rental Waivers?
The second round of the rental waivers is especially for companies that has a significant decrease in their revenues. Thus, a company should fulfil all of these conditions to be eligible for the additional rental waivers:
- The company’s revenue has decreased by 35% or more during the months of April and May.
- The tenant agreement was made before 25 March 2020.
- The annual turnover was less than $100 million in 2019.
You can look at the Singapore budget 2020 highlights to know more about the waiver and other supports companies can get in Singapore.