SME Rebate Scheme

SME Rebate Scheme Overview

Overview
Eligibility
Quanta of Rebate
Application and Payment Process
Audit
Calendar of Important Dates

1. Overview

The SME Rebate Scheme is a 2-year assistance scheme to help SMEs adjust to rising business costs due to the increase in employer CPF contribution rate.

2. Eligibility

The rebates will be granted only to SME businesses. To ensure that the rebates are targeted at SMEs, the government will grant the rebates to businesses (including corporate entities, partnerships and sole proprietorships) that meet the following criteria:

a) For a non-manufacturing firm:

Business must be registered in Singapore.
Fixed Asset Investment (FAI) of less than S$15 million.
Not more than 200 employees.

b) For a manufacturing firm:

Business must be registered in Singapore.
Fixed Asset Investment (FAI) of less than S$15 million.

Note: SME businesses which have corporate shareholders (both local and foreign commercial entities) or are themselves majority shareholders of other companies (both local and foreign commercial entities) should compute their FAI and the number of employees on a group basis.

For computation of FAI and number of employees on a group basis, please click here.

3. Quanta of Rebate

The rebates are pegged to the total employer and employee contributions paid by the SME to CPF Board over 2 years (01 July 2007 – 30 June 2009).

First Year (01 July 2007 – 30 June 2008)

Total CPF Paid in First Year	Quanta
First $40,000	2% of CPF paid (up to the maximum of $800)
Next $40,000	1% of the total CPF paid (up to the maximum of $400)

Second Year (01 July 2008 – 30 June 2009)

Total CPF Paid in Second Year	Quanta
First $40,000	1% of the total CPF paid (up to the maximum of $400)
Next $40,000	0.5% of the total CPF paid (up to the maximum of $200)

For examples on the computation of the SME Rebates, please click here.

4. Application and Payment Process

Firms can apply for the rebates via an online application form. In the application form, firms will have to declare that they meet the eligibility criteria of the scheme. There will be two application periods:

1st Application Period: 1 July 2007 – 31 July 2008
2nd Application Period: 1 August 2008 – 31 July 2009

Firms that apply in the 1st Application Period will qualify for the rebates in both years of the scheme. They need not reapply in the 2nd Application Period.

Firms that only apply in the 2nd Application Period will only be eligible for the rebates paid out for the Second Year of the scheme.

The payment of the rebates will be on an annual reimbursement basis (See FAQs). Eligible firms will receive notification letters from CPF Board indicating the date and amount of payment.

5. Audit

CPF Board reserves the right to audit the declarations submitted. Any firm that is found to have made false or misleading declarations may be prosecuted under the Penal Code. In addition, CPF Board may, at its discretion, withhold the rebates or recover any amount of rebates that may have been disbursed to the firm.

6. Calendar Of Important Dates

First Year of SME Rebates (1 July 2007 - 30 June 2008)
1 July 2007	Employers can submit their applications for the first and second year of SME rebates through an online application form.
31 July 2008	Deadline for employers to submit their applications to receive the SME rebates for two years.
August 2008	Employers who have submitted their applications by 31 May 2008 will receive notification letters from CPF Board on the outcome of their applications.
Mid August 2008	Employers who have submitted their applications by 31 May 2008 will receive* the SME rebates for the first year.
September 2008	Employers who have submitted their applications between 1 June and 31 July 2008 will receive notification letters from CPF Board on the outcome of their applications.
Mid September 2008	Employers who have submitted their applications between 1 June and 31 July 2008 will receive the SME rebates for the first year.

*To receive the rebates in August 2008, employers should make their full CPF contribution for the period between 1 July 2007 and 30 June 2008 by 14 July 2008.

Second Year of SME Rebates (1 July 2008 - 30 June 2009)
1 August 2008	Employers who did not submit their applications between 1 July 2007 and 31 July 2008 can submit their online applications for the second year of SME rebates.
31 July 2009	Deadline for employers to submit their applications to receive the SME rebates for the second year.
August 2009	Employers who have submitted their applications by 31 May 2009 will receive notification letters from CPF Board on the outcome of their applications.
Mid August 2009	Employers who have submitted their applications by 31 May 2009 will receive* the SME rebates for the second year.
September 2009	Employers who have submitted their applications between 1 June and 31 July 2009 will receive notification letters from CPF Board on the outcome of their applications.
Mid September 2009	Employers who have submitted their applications between 1 June and 31 July 2009 will receive the SME rebates for the second year.

*To receive the rebates in August 2009, employers should make their full CPF contribution for the period between 1 July 2008 and 30 June 2009 by 14 July 2009.