Companies Which Are Not Eligible for the Start-up Tax Exemption Scheme
Not every company in Singapore is eligible to claim the tax advantages provided by the Start-up Tax Exemption Scheme. Start-ups which were created for the purpose of development of properties for sale, investment, or both are ineligible for this scheme. The same is true of any Singapore-based start-up which has the primary objective of investment holding. Such is the case because of the inherent nature of these types of companies. Real estate companies typically require the incorporation of a new company whenever a new property is developed. Investment holding companies, which own investments including shares and properties for the purposes of long-term investment, are able to earn passive income which may come in the form of interest, dividend, or rental income. For these reasons, such companies are not eligible for these tax exemptions because of the difficult situation which would be caused through their eligibility. However, this does not mean that such companies are permanently ineligible for any tax exemptions which exist in Singapore. Companies which are not eligible for the Start-up Tax Exemption Scheme may nevertheless claim partial tax exemptions.
Except these companies, all other companies are eligible for tax exemptions. For that, there is a criterion for full tax exemptions. In case, the companies do not meet the criteria, then they will be still eligible for partial tax exemptions.
Having taken all of the preceding information into account, you may have developed an interest in starting a company of your own in Singapore. Should such be the case, we at Paul Hype Page & Co will ensure that you begin your journey as a Singapore company owner in the best possible fashion. Our experienced and highly regarded incorporation team will work with you in the establishment of your new Singapore company which in turn will present you with many benefits, whether financial or otherwise.