§ 92L — Remission of tax for companies for year of assessment 2025 and cash grant for companies

92L.—(1) Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for the year of assessment 2025 by the company of an amount equal to the lower of the following:(a)

50% of the tax payable for that year of assessment (excluding any tax levied under section 43(3), (3A), (3B) and (3C)), less the cash grant of $2,000 made to the company under subsection (3), where applicable;

(b)

$40,000, less the cash grant of $2,000 made to the company under subsection (3), where applicable.

(2) However, where 50% of the tax payable under subsection (1)(a) is less than the cash grant of $2,000, the amount in subsection (1)(a) is nil.

(3) Subject to subsection (4), where a company has made a CPF contribution in respect of at least one local employee in the calendar year 2024 in accordance with regulation 2(1) of the Central Provident Fund Regulations (called in this section the time requirement), there is to be made to the company a cash grant of $2,000.

(4) Unless the Comptroller otherwise permits, no cash grant may be made to a company (X) if, at the time of disbursement —(a)

X is not carrying on a trade or business (including the activity of holding any investments);

(b)

X is in liquidation;

(c)

X is under receivership in respect of all of its properties; or

(d)

X has ceased to exist.

(5) The Comptroller may waive the time requirement under subsection (3) if the Comptroller is satisfied that it is just and equitable to do so.

(6) The cash grant under subsection (3) is exempt from tax in the hands of the company.

(7) For the purpose of subsection (3) —“central hirer” and “central hiring arrangement” have the meanings given by section 14ZG(5);

“CPF contribution” means a contribution to the Central Provident Fund that is obligatory under section 7(1) of the Central Provident Fund Act 1953;

“employee”, in relation to a company, means —(a)

an individual who is an employee of the company for any period in the calendar year 2024 and is on the payroll of the company for that period;

(b)

an individual —(i)

who is engaged by the central hirer of a central hiring arrangement for a group of related parties that includes the company;

(ii)

who is deployed to work solely for the company for any period in the calendar year 2024;

(iii)

who is on the payroll of the central hirer or the company for that period; and

(iv)

whose salary and other remuneration for that period (including any CPF contribution in respect of the individual) is borne (directly or indirectly) by the company; or

(c)

an individual —(i)

who, being an employee of another person that is a related party of the company (called in this subsection and subsection (8) the employer), is seconded to a position in the company under a bona fide commercial arrangement to work solely for the company for any period in the calendar year 2024;

(ii)

who is on the payroll of the employer or the company for that period; and

(iii)

whose salary and other remuneration for that period (including any CPF contribution in respect of the individual) is borne (directly or indirectly) by the company,

but excludes any individual who is a shareholder and also a director of the company;

“local employee” means a Singapore citizen or Singapore permanent resident who is an employee of the company.

(8) For the purpose of determining whether the individual mentioned in paragraph (b) or (c) of the definition of “employee” in subsection (7) is also an employee of the central hirer or the employer by virtue of paragraph (a) of that definition, the period mentioned in paragraph (b) or (c) (as the case may be) is to be disregarded for the purpose of paragraph (a) of that definition.[Act 25 of 2025 wef 08/12/2025]

—(1) Where the Comptroller is satisfied that the remission of tax would be beneficial to a company, then there is to be remitted the tax payable for the year of assessment 2025 by the company of an amount equal to the lower of the following:(a)

50% of the tax payable for that year of assessment (excluding any tax levied under section 43(3), (3A), (3B) and (3C)), less the cash grant of $2,000 made to the company under subsection (3), where applicable;

(b)

$40,000, less the cash grant of $2,000 made to the company under subsection (3), where applicable.

(2) However, where 50% of the tax payable under subsection (1)(a) is less than the cash grant of $2,000, the amount in subsection (1)(a) is nil.

(3) Subject to subsection (4), where a company has made a CPF contribution in respect of at least one local employee in the calendar year 2024 in accordance with regulation 2(1) of the Central Provident Fund Regulations (called in this section the time requirement), there is to be made to the company a cash grant of $2,000.

(4) Unless the Comptroller otherwise permits, no cash grant may be made to a company (X) if, at the time of disbursement —(a)

X is not carrying on a trade or business (including the activity of holding any investments);

(b)

X is in liquidation;

(c)

X is under receivership in respect of all of its properties; or

(d)

X has ceased to exist.

(5) The Comptroller may waive the time requirement under subsection (3) if the Comptroller is satisfied that it is just and equitable to do so.

(6) The cash grant under subsection (3) is exempt from tax in the hands of the company.

(7) For the purpose of subsection (3) —“central hirer” and “central hiring arrangement” have the meanings given by section 14ZG(5);

“CPF contribution” means a contribution to the Central Provident Fund that is obligatory under section 7(1) of the Central Provident Fund Act 1953;

“employee”, in relation to a company, means —(a)

an individual who is an employee of the company for any period in the calendar year 2024 and is on the payroll of the company for that period;

(b)

an individual —(i)

who is engaged by the central hirer of a central hiring arrangement for a group of related parties that includes the company;

(ii)

who is deployed to work solely for the company for any period in the calendar year 2024;

(iii)

who is on the payroll of the central hirer or the company for that period; and

(iv)

whose salary and other remuneration for that period (including any CPF contribution in respect of the individual) is borne (directly or indirectly) by the company; or

(c)

an individual —(i)

who, being an employee of another person that is a related party of the company (called in this subsection and subsection (8) the employer), is seconded to a position in the company under a bona fide commercial arrangement to work solely for the company for any period in the calendar year 2024;

(ii)

who is on the payroll of the employer or the company for that period; and

(iii)

whose salary and other remuneration for that period (including any CPF contribution in respect of the individual) is borne (directly or indirectly) by the company,

but excludes any individual who is a shareholder and also a director of the company;

“local employee” means a Singapore citizen or Singapore permanent resident who is an employee of the company.

(8) For the purpose of determining whether the individual mentioned in paragraph (b) or (c) of the definition of “employee” in subsection (7) is also an employee of the central hirer or the employer by virtue of paragraph (a) of that definition, the period mentioned in paragraph (b) or (c) (as the case may be) is to be disregarded for the purpose of paragraph (a) of that definition.[Act 25 of 2025 wef 08/12/2025]