Tax Exemption Schemes and Rebates for Companies

In an effort to support corporate start-ups, the Singapore tax authority has implemented a scheme offering sizable tax exemptions to resident companies. The two of the most common schemes are :

  • Tax Exemption for Qualifying Singapore Start-up Companies: qualifying new companies are given full exemption on the first S$100,000 normal chargeable income and a further 50% exemption on the next S$200,000 of normal chargeable income for the first three consecutive YAs. To qualify for tax exemption for start-ups, eligible companies must (i) be incorporated in Singapore, (ii) be a tax resident in Singapore and (iii) must not have more than 20 shareholders with at least one individual shareholder holding at least 10% of the issued ordinary shares of the company.
  • Partial Tax Exemption: eligible companies will enjoy a 75% exemption on the first S$10,000 of normal chargeable income and a further 50% on the next S$290,000 per YA.
  • Corporate Income Tax Rebate : a company is taxed at a flat rate of 17% on its chargeable income. However, resident companies will enjoy a 30% rebate of corporate income tax payable, subject to a cap of $20,000 per YA 

Any further inquiries, please contact us.