<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>No reason to exclude working shareholders from Jobs Credit
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I AM stunned by the fact that working directors of companies are not eligible for the Jobs Credit scheme.
Many small and medium-sized enterprises (SMEs) are run by the shareholders themselves. They are also employees who receive a salary and pay Central Provident Fund (CPF) contributions.
However, such people are not eligible for Jobs Credit. This seems to run counter to the objective of trying to help companies stay afloat. The eligibility clause for Jobs Credit on the Inland Revenue Authority of Singapore website states: 'Businesses in operation that have made CPF contributions for their employees (Singaporeans and permanent residents only), with the exception of local and foreign government organisations, will be eligible for the Jobs Credit. The Jobs Credit is automatically granted to eligible employers. They do not need to apply for it.'
Nowhere does it say that working shareholders are excluded. In my company, two of the four shareholders run the company as employees. In fact, business is so poor that we do not even get salaries in some months.
Yet we continue to pay our CPF contributions. The other two shareholders are sleeping partners.
Jobs Credit will be a boon to us. However, the interpretation of eligibility disqualifies us for it. If we have to close, two of us will join the unemployment register.
I appeal to the authorities not to exclude the thousands of SMEs that are in this predicament. Arthur Tan
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<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->I AM stunned by the fact that working directors of companies are not eligible for the Jobs Credit scheme.
Many small and medium-sized enterprises (SMEs) are run by the shareholders themselves. They are also employees who receive a salary and pay Central Provident Fund (CPF) contributions.
However, such people are not eligible for Jobs Credit. This seems to run counter to the objective of trying to help companies stay afloat. The eligibility clause for Jobs Credit on the Inland Revenue Authority of Singapore website states: 'Businesses in operation that have made CPF contributions for their employees (Singaporeans and permanent residents only), with the exception of local and foreign government organisations, will be eligible for the Jobs Credit. The Jobs Credit is automatically granted to eligible employers. They do not need to apply for it.'
Nowhere does it say that working shareholders are excluded. In my company, two of the four shareholders run the company as employees. In fact, business is so poor that we do not even get salaries in some months.
Yet we continue to pay our CPF contributions. The other two shareholders are sleeping partners.
Jobs Credit will be a boon to us. However, the interpretation of eligibility disqualifies us for it. If we have to close, two of us will join the unemployment register.
I appeal to the authorities not to exclude the thousands of SMEs that are in this predicament. Arthur Tan
