More support for firms to scale up, go overseas

MORE support will be provided to companies looking to scale up, through tax breaks and dollar-matching on investments.

The SME mezzanine growth fund will be expanded to up to S$150 million, compared to the current size of S$100 million, said Finance Minister Heng Swee Keat on Thursday. The new funding will be dedicated to smaller SMEs with annual revenue of no more than S$50 million at the point of investment. The boost in funding will be done by matching up to S$25 million of new private sector investment on a one-on-one basis.

The government will also grant an M&A tax allowance on up to S$40 million of the value of the deal, instead of the current cap of S$20 million. Companies can now benefit from up to S$10 million in M&A tax allowances per year of assessment. There will also be no taxes on companies' qualifying gain on disposal of their equity investments, until May 31, 2022. The extension of this tax break will provide "upfront certainty" to companies for their corporate restructuring, said Mr Heng.