Tax Incentives

Posts: 2 Reputation: 0 Join date: 2009-10-28

Hi, I have a question about taxes in Singapore. What tax incentives are available for new startups in Singapore?

Posts: 6 Reputation: 1 Join date: 2009-08-13

New tax incentives for Singapore start-up private limited companies have been introduced since 2005 to support entrepreneurship and to help foster growth of SMEs. Under the new scheme, a newly incorporated company that satisfies the qualifying conditions (viz. be incorporated in Singapore, be a tax resident of Singapore and has no more than 20 shareholders of which at least one is an individual shareholder holding at least 10% of shares) will be taxed as follows:
1. For each of its first three consecutive tax years - corporate tax rate of 0% on the first S$100,000 of taxable income and 9% (partial exemption) tax rate on the next S$200,000 of taxable income. The taxable income above S$300,000 will be charged at the normal headline corporate tax rate of 18%.
2. From the fourth tax year onwards - 9% tax rate on taxable income of upto S$300,000 per annum. The taxable income above S$300,000 will be charged at the normal headline corporate tax rate of 18%.

Note: Effective 2010, corporate income tax rate will be reduced from 18% to 17%.

For more information on Singapore taxes, you can refer to Singapore Income Tax Guide

Posts: 15 Reputation: 1 Join date: 2009-05-04

Anyone care to share on Government grant for entrepreneur below the age of 26. Must this amount be returned at a later date? Not exactly sure about this.

Rising Star Posts: 161 Reputation: 2 Join date: 2009-06-28

There are about more than 150 grants available from different government agencies, ranging from a few thousands to a few millions....
Grants reimburse the running of the business, (excluding business's costs) and the kind of grants a business can apply depends on the business's nature and directions....
Since it is on a reimbursement basis, it means the amount does not need to be returned....

btw if anyone of you like to know more, i will like to refer you to my associate company which helps SMEs to apply for government grants, loans and tax incentives and other financial schemes....
let me know how i can add value to you guys ya....