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    Location

    77 High Street, #05-02, High Street Plaza, Singapore 179433

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    Phone us

    Office: +65 6909 5691

    HP: +65 8923 8819

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    email us

    contactus@verti.sg

What Are The Corporate Tax Reliefs Availabe To Me

What Are the Corporate Income Tax Reliefs Available to Me?

Singapore has one of the lowest corporate income tax rates. This is made even more advantageous for businesses in Singapore as the government provides several incentives to promote entrepreneurship in Singapore. Collaborating with IRAS, tax reduction schemes has been implemented to help ease the costs of running a company.

 

Tax Exemption Scheme for New Start-Up Companies

To encourage entrepreneurship and help start-ups grow and establish a base in the country, the Start-up Tax Exemption Scheme (SUTE) was introduced, providingnewly incorporated qualifying companies exemption on their taxable profits in their first 3 years of operations. The table below shows the exemption amount for eligible start-ups.

YA 2020 Onwards YA 2010-2019
Chargeable Income (SGD) Tax Exemption Chargeable Income (SGD) Tax Exemption
First 100,000 75% First 100,00 100%
Next 100,000 50% Next 200,000 50%

YA – Year of Assessment

 

Eligibility and Qualifying Conditions

This scheme is available to all start-up companies in Singapore, excluding any company whose:

  1. Principal activity is that of investment holding; or
  2. Principal activity is that of developing properties for sale, investment, or both.

Eligible start-ups must fulfil the following 3 conditions to qualify for the tax exemption:

  1. The company must be a company registered in Singapore.
  2. The company must be a tax resident for that assessment year in Singapore.
  3. The number of shareholders of the company must not exceed 20 in that assessment year.Among these individual shareholders, at least one of them needs to hold 10 percent or more of the company’s shares.

 

Partial Tax Exemption for Companies (PTE)

The Government recognises that smalland medium sized enterprises (SMEs) are also an important component of a vibrant economy. As such, the Government has put in place the PTE scheme designed tohelp such companies grow and establish themselves.

Companies that do not meet the qualifying conditions for SUTE would be eligible for the PTE.The table below shows the exemption amount that qualifying companies can enjoy.

YA 2020 Onwards YA 2010-2019
Chargeable Income (SGD) Tax Exemption Chargeable Income (SGD) Tax Exemption
First 100,000 75% First 100,00 100%
Next 190,000 50% Next 290,000 50%

 

Corporate Income Tax Rebate

The corporate income tax rebate was introduced to help improve the cash flows of businesses and to support restructuring of companies.The infographic below summarises the corporate income tax rebate percentage and cap given for companies for YAs 2013-2021.

CORPORATE INCOME TAX REBATE NOT PROPOSEDIN BUDGET 2021 YA
2021
NOT APPLICABLE
25% CORPORATE INCOME TAX REBATE YA
2020
CAPPED AT $15,000
20% CORPORATE INCOME TAX REBATE YA
2019
CAPPED AT $10,000
40% CORPORATE INCOME TAX REBATE YA
2018
CAPPED AT $15,000
50% CORPORATE INCOME TAX REBATE YA
2017
CAPPED AT $25,000
50% CORPORATE INCOME TAX REBATE YA
2016
CAPPED AT $2,0000
30% CORPORATE INCOME TAX REBATE YA
2013-2015
CAPPED AT $30,000

Corporate income tax rebate is computed on the tax payable after deducting tax set-offs.

 

References

We provide:
– Strategic advice to the company’s board of directors
– Virtual Receptionist
– Registered Address
– Leads Qualifications
– Expense Management

Speak with us for a customised solution for your business needs.

Ready to take off and go beyond your borders?
We provide:
Go to market strategy in multiple Asia Markets
Customised prospection: Looking for potential agents, distributors, imports?
Integrated sales to development program to maximise your business growth in the market

Corporate Tax & Goods & Services Tax (GST Singapore) / VAT
Verti provides advice, tax computation and tax filing on your Corporate (ECI, Form C/CS Form) issues, to ensure adherence to regulations.

Personal Tax
If you are a Singaporean, Singapore Permanent Resident or a foreigner who has lived and worked in Singapore for at least 183 days in the tax year, you are required to pay personal taxes on your chargeable income as a tax resident. Non-residents who have lived and worked in Singapore for less than 183 days in the tax year may also be required to pay taxes. The corresponding forms you will have to fill out include:

• Form B1 (individual tax residents)
• Form B (self-employed)
• Form M (non-residents)

Other taxes, that individuals may have to pay, include those imposed on property, rental income, stamp duty, motor vehicles and Central Provident Fund (CPF) contributions.

A corporate secretary needs to be familiar with the Singapore Companies Act and the various
requirements stipulated by the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).

“Great incorporation gives you a great head start for your business!”
As a gateway to Southeast Asia, Singapore continues to be the leading hub for businesses to gain their presence, be it world’s largest multinational corporations or fast-growing start-ups.

Having us to steer you around with Singapore’s rules & regulations would accelerate your success route in this business-friendly city.

a) For Singapore or Permanent Resident
b) For Foreigner Individual (+ VISA/Work permit related matters for key personnel of the Business)
c) For Foreigner Companies

Subsidiary Company:
Subsidiary Company + Employment Pass
Subsidiary Company + Nominee Director

Branch Office
Branch Office + Employment Pass
Branch Office + Nominee Agents

Representative Office
Singapore Representative Office Setup

Open chat
Hello! Welcome to Verti, we are very excited to have you on board. How can we help you today?