If you are planning to start a business in Singapore or planning to be an entrepreneur, directing your own sales, marketing etc., then you will be happy to know that there is a scope of tax exemption your start-up might get. The tax exemption can really boost and help you to take your business off the ground very quickly. 

This scheme was first introduced in the year 2005 by the government of Singapore with aim of giving support to entrepreneur ship and local businesses. The government is giving tax exemption scheme for new start-up businesses, partial tax exemption for all companies along with deduction of expenses that incurred before the starting of the business. 

Exemptions given to the companies:

The companies are given exemptions for the first three consecutive years of assessment (YA). From the fourth year, however this scheme will not be applicable but may be eligible for a partial tax exemption. 

The exemption given to the companies are as follows: 

YA 2020 onwards 

  • For the first $100,000 chargeable income, 75% tax deduction is applied. 
  • For the next $100,000 chargeable income, 50% tax deduction is applied. 

YA 2019 and before 

  • 100% exemption for the first $100,000 chargeable income. 
  • 50% exemption for the next $200,000 chargeable income. 

Which companies will qualify for tax exemption? 

All new companies will qualify except the following categories: 

  • Companies involved in investment holding. 
  • Companies dealing property investment for sale, for investment or for both. 

Furthermore, the Start-ups must qualify the following conditions: 

  • The company must be incorporated in Singapore 
  • The company should be a tax resident of Singapore for that YA 
  • The companies share capital should not be held by more than 20 shareholders 
  • At least one of the shareholders should be holding at least 10% of the issued shares of the company. 

So, now as you know about the tax exemption for new start-ups in Singapore, you should also have the knowledge about the process of starting your entrepreneur ship in Singapore. The process is very simply and fully computerised.  

At first, you need to register yourself online. There are many online companies that will help you with this process. This companies will charge you a service fee definitely. The Singapore company registration service fee varies from company to company and depends on the volume and type of your business. The Singapore company registration service fee is normally range between $300 to $400. Choose from various online services and select the best suitable one for you. 

Next comes the company incorporation services which is offered again online by various online merchants. The company incorporation services Singapore fee again depends on the type of your business and type of service that you need. They offer various packages with multiple features. The charges depend upon the type of features/services you are looking for. The company incorporation services Singapore fee can be from $400 to $1500 depending on your requirement. 

So, having all the above information in hand, start your own business in Singapore with confidence and determination.