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Annual Tax Filing Requirements

Tax Exemption Scheme for New Start-Up Companies

Under this scheme, a newly incorporated branch that satisfies the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for each of its first three consecutive YAs.

The exempted amount for each YA is summarised as follows:

Annual Tax Filing Requirements

Qualifying conditions

To qualify for the tax exemption for new start-up companies, your company must:

1. Be incorporated in Singapore (other than a company limited by guarantee**);

2. Be a tax resident* in Singapore for that YA;

3. Have no more than 20 shareholders throughout the basis period for that YA where:

All of the shareholders are individuals beneficially and directly holding the shares in their own names; OR
At least one shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company.

* A company is resident in Singapore if the control and management of its business is exercised in Singapore.

** With effect from YA 2010, the scheme will be extended to companies limited by guarantee, subject to the same conditions imposed on companies limited by shares.

Tax Rates

A company is taxed at a flat rate on its chargeable income regardless of whether it is a local or foreign company.

The tax rates and tax exemption / rebate for each Year of Assessment (YA) are as follows:

Annual Tax Filing Requirements tax rates

How to Determine Your First Year of Assessment

The first YA refers to the YA relating to the basis period during which the company was incorporated.

From the fourth YA onwards, your company will be given partial tax exemption instead of the exempted amount for new start-up companies.

Keeping Proper Records and Time limit to Raise Assessments

Company must maintain proper records of its financial transactions and retain the source documents, accounting records and schedules, bank statements and any other records of transactions connected with your business.

For YA 2008 and each subsequent YA, the record-keeping period has been reduced from seven to five years.

Paul Hype Page & Co. is an ACRA-certified business adviser. Our team of seasoned professional can help you set up a company in Singapore very quickly and easily following all legal entities, and offer you sound advice on how to make it successful too.

We provide the following services:

  1. Instant online company registration in Singapore
  2. International tax planning and advice
  3. Professional company secretary service at affordable price
 

Paul Hype Page Consultants would also be able to give you more information and assistance on policy updates, compliance regulations and changes to tax conditions.

To further aid you, we have provided here a resource area with industry specific information and other industry resources to help you successfully start and run your business.

  1. Singapore Business Opportunities 
  2. Singapore Business Licences
  3. Singapore Tax Planning
  4. Singapore Company Incorporation
  5. Singapore Company Yearly Statutory Requirements
  6. Singapore Working Visa Guide

 


In addition to Tax Planning, we’ll also guide you how to:

What Are The Guidelines For Foreigners to Start a Business in Singapore4

 

 

  • Write a business plan – Learn how to write a compelling business plan by accessing our sample business plans, or other helpful market research information
  • Perform market research – Understand your business market, learn how it can enhance your business growth, and how to properly conduct a market research for your business
  • Legal issues for small business – If you are thinking about registration of company in Singapore, then you really need a lawyer. In addition, you will learn why legal counseling is very important part of any business.
  • Manage your finances – We’ll offer you the best resources and information to help you fully understand all financial concepts and teach you how to perform basic accounting tasks like budgeting, bookkeeping, financial analysis, among others.
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[…] for reporting purposes. Audit Exemptions No company, regardless of its size, is exempted from filing tax returns. However, private companies that have less than $5 million in annual income, or those which have […]

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