Scottish retail, hospitality, leisure and aviation businesses will pay no rates throughout the next year, under new plans outlined by finance secretary Kate Forbes.
The extension is part of £1.1bn consequential funding arising from UK government coronavirus spending.
Forbes, who had already announced plans for a three-month extension in her budget last month said: “we are still in the throes of a national emergency and it is important parliament works together to respond”.
It comes as business rates relief measures in England are set to end on 31 March, after being implemented for nearly one full year.
According to The Federation of Small Business (FSB), the extension for the next financial year will allow many smaller firms to “make it through to the end of this crisis” and help them get “back on their feet when the economy re-opens”.
Andrew McRae Scotland policy chair, FSB said: “Should many bigger businesses choose not to take up this tax break, we’d like to see the money saved spent on measures to give local and independent businesses a shot-in-the-arm”.