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Singapore Budget 2025: Disbursement Timeline for Business Owners and SMEs

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Singapore’s Budget 2025 introduces a range of measures to support business owners and SMEs, addressing key pain points such as rising costs, cash flow challenges, and the need for international expansion. With a focus on financial relief, innovation, and growth, the government is rolling out several initiatives to help businesses thrive in a competitive global economy. Here’s a timeline of key disbursements and support measures that matter most to business owners:

About EnterpriseSG

April 2025

  • Enterprise Financing Scheme (EFS) – Trade Loan Enhancements:

    • The maximum loan quantum under the EFS – Trade Loan will be permanently increased from 5 million 10 million. This will help businesses meet their trade financing needs, especially amid elevated costs, and support their internationalization efforts.

    • Eligibility: Open to all Singapore-based enterprises.

May 2025

  • Corporate Income Tax (CIT) Rebate and Cash Grant:

    • Businesses will receive a 50% CIT rebate on their tax payable for the Year of Assessment (YA) 2025, with a minimum benefit of $2,000 in the form of a CIT Rebate Cash Grant.

    • The total maximum benefit (CIT Rebate + Cash Grant) is capped at $40,000 per company.

    • Eligibility: Companies must have employed at least one local employee (Singapore Citizen or Permanent Resident) in 2024 and made CPF contributions for them.

    • Disbursement: Benefits will be automatically credited from Q2 2025.

June 2025

  • Progressive Wage Credit Scheme (PWCS) Enhancements:

    • The PWCS co-funding support for wage increases given in 2025 will be increased from 30% to 40%. This applies to wage increases for lower-wage workers earning up to 3,000 before the increase and up to 4,000 after the increase.

    • Eligibility: Employers must sustain the wage increase for at least two years.

    • Disbursement: Payouts will be made in Q1 2026.

July 2025

  • Double Tax Deduction for Internationalisation (DTDi) Scheme Extension:

    • The DTDi scheme, which allows businesses to claim a 200% tax deduction on qualifying market expansion and investment development expenses, will be extended until 31 December 2030.

    • Eligibility: Businesses engaging in overseas market promotion, business development, and market set-up activities.

October 2025

  • Mergers and Acquisitions (M&A) Scheme Extension:

    • The M&A scheme, which provides tax benefits for qualifying acquisitions, will be extended until 31 December 2030.

    • Businesses can claim:

      • An M&A allowance of 25% of up to $40 million of the acquisition value.

      • A 200% tax deduction on transaction costs, capped at $100,000 per Year of Assessment.

    • Eligibility: Singapore companies making qualifying acquisitions of ordinary shares in another company.

January 2026

  • Progressive Wage Credit Scheme (PWCS) Enhancements for 2026:

    • The PWCS co-funding support for wage increases given in 2026 will be increased from 15% to 20%.

    • Eligibility: Employers must sustain the wage increase for at least two years.

    • Disbursement: Payouts will be made in Q1 2027.

Ongoing Support Throughout 2025 and Beyond

  • Enterprise Financing Scheme (EFS) – Mergers and Acquisitions Loan Enhancements:

    • From 1 April 2025, the scope of the EFS – M&A Loan will be expanded to support targeted asset acquisitions, in addition to equity acquisitions.

    • Eligibility: Singapore enterprises pursuing inorganic growth opportunities.

  • Market Readiness Assistance (MRA) Grant Extension:

    • The enhanced grant cap of $100,000 per new market under the MRA grant will be extended until 31 March 2026.

    • Eligibility: SMEs looking to expand into new overseas markets.

  • Land Intensification Allowance (LIA) Scheme Extension:

    • The LIA scheme, which encourages businesses to intensify land use, will be extended until 31 December 2030.

    • Eligibility: Businesses investing in qualifying buildings and meeting land use requirements.

A Budget for Business Growth and Resilience

Budget 2025 plans to support business owners and SMEs in navigating rising costs, expanding internationally, and fostering innovation. From tax rebates and wage co-funding to enhanced financing schemes, the government is committed to helping businesses thrive in a challenging economic environment.

For business owners, this Budget offers not just financial relief but also opportunities to scale, innovate, and compete globally. As PM Wong aptly put it, this is a Budget for all Singaporeans, shaped by all Singaporeans, ensuring that no one is left behind.

Stay tuned to Financial Coconut for more insights on how Budget 2025 impacts your finances.

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