New Start-up Tax Exemptions in Singapore
Just started your new Singapore company? Tap on the new Tax Exemption Scheme to enjoy tax-free operations for the first 3 Year of Assessment (YA). You can also continue to enjoy Partial Tax Exemption (PTE) from the fourth year onwards. Find out more about the ins and outs of corporate tax in Singapore here at Paul Hype Page & Co.
Here’s what you need to know.
Singapore Corporate Tax Rate
The Singapore corporate tax rate is at 17%. This is a flat rate on chargeable income, regardless of whether it is a local or foreign company
Requirements for the Company Tax Exemption Scheme
To qualify for the tax exemption, the company must:
- Be incorporated in Singapore
- Be a tax resident in Singapore for the Year Assessed
- Have no more than 20 shareholders throughout the basis period of the Year Assessed
- Have its shareholders beneficially and directly holding the issuing shares in their own names OR have at least one shareholder beneficially and directly holding at least 10% of the issued ordinary shares of the company
Company Tax Exemption Scheme for New Startup Companies
If your company satisfies the qualifying conditions, you are eligible for the tax exemption scheme. You can claim a 75% tax exemption on the first S$100,000 and a 50% tax exemption on the next S$100,000 of normal chargeable income for each of the first 3 consecutive years of assessment.