TAX INCENTIVES

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?

1. Company should be incorporated in Singapore
2. A tax resident of Singapore in that YA
3. 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