For first three years, first S$100,000 of profits is tax free every year, and
For First three years, next S$200,000 of profit (over and above exempt S$100,000 i.e. 100k+200K) will be charged at half of normal income tax rates
Normal rates of income tax in Singapore is only 17%.
Well all Singapore companies have this first three assessment years, after its incorporation, income tax exemption provided that the company is :
- having at least 10%(or more) shares held by an individual person
- is not an investment holding company (make sure you put correct SSIC code)
- is not a property developer
Well I would say those conditions are not hard to meet and are applicable for majority of new startups.
Go ahead and speak to your Tax Agents now and avail the exemption of fill in the contact form below for free advice: