Extended GST grace period for SMEs among initiatives to help firms: MOF

The Ministry of Finance on Feb 28 announced new and enhanced measures aimed at fostering a more pro-business environment, as well as simplifying rules and processes for companies here.

- Sheila Chiang

From July 1, the Inland Revenue Authority of Singapore (Iras) will extend the grace period for businesses to begin charging goods and services tax (GST), from one month to two months after a business forecasts that it will cross $1 million in taxable turnover.

Currently, businesses expecting to cross the $1 million taxable turnover threshold within the next 12 months must register for and start charging GST within a month of forecast.

Second Minister for Finance Chee Hong Tat said in the debate on the Ministry of Finance's budget in Parliament on Feb 28 that "this timeline can be tight for some small and medium-sized enterprises (SMEs)".

The one-month extension will give SMEs more time to prepare, and 1,500 businesses are expected to benefit from it every year, said Mr Chee.

In addition, Iras will remove the approval requirement needed for second-hand goods dealers to use the GST Gross Margin Scheme (GMS). This will also take effect from July 1.