Tax Exemption Scheme for Start-Up Companies
The Tax Exemption Scheme supports start-ups, promoting entrepreneurship. Revisions will be made from 2020, considering strengthened support for capability building.
Tax Exemption for Start-Up Companies
During the first three years of their operation, qualifying companies are entitled to the following tax exemptions:
YA2020 onwards:
- 75% exemption on the first $100,000 of normal chargeable income; and
- A further 50% exemption on the next $100,000 of normal chargeable income.
YA2019 and before:
- Full exemption on the first $100,000 of normal chargeable income; and
- A further 50% exemption on the next $200,000 of normal chargeable income.
Qualifying Conditions for this Tax Scheme
Tax exemptions are available to all new start-ups, except for the following:
- Investment holding companies
- Property development companies that develop properties for sale, investment, or both
Additionally, the new company must:
- Be incorporated in Singapore
- During that YA, be a resident of Singapore
- No more than 20 shareholders directly hold the company’s total share capital during the basis period for that YA, where:
- Shareholders are all individuals; or
- At least one shareholder holds at least 10% of the company’s issued ordinary shares