Start-up Tax Incentives
What is Start-up Tax Incentives?
Start-ups that meet certain qualifying conditions do not need to pay tax on the first S$100,000 of chargeable income (excluding Singapore franked dividends) for any of the first 3 years of tax assessment from Year of Assessment 2005). Additionally, there is a 50% tax exemption on the next S $200,000 for each of the first three consecutive years.
This will help start-ups preserve their cash flow and profits.
Who is eligible?
- Company should be incorporated in Singapore
- A tax resident of Singapore in that YA
- Has no more than 20 shareholders throughout the basis period for that YA where:
- all of the shareholders are individuals beneficially holding the shares in their own names; OR
- at least one shareholder is an individual beneficially holding at least 10% of the issued ordinary shares of the company