IRAS has outlined some common tax reliefs on its website. These include:
- Tax Exemption Scheme for New Start-Up Companies;
- Partial Tax Exemption for all companies; and
- Deduction of Expenses Incurred Before Commencement of Business
Tax Exemption Scheme for New Start-Up Companies
Qualifying new companies are given full exemption on the first $100,000 normal chargeable income and a further 50% exemption on the next $200,000 of normal chargeable income for the first three consecutive Years of Assessment.
Partial Tax Exemption for Companies (PTE)
Qualifying companies can enjoy:
75% tax exemption on the first $10,000 of normal chargeable income, and a further 50% tax exemption on the next $290,000 of normal chargeable income.
Deduction of Expenses Incurred Before Commencement of Business
Generally, only revenue expenses incurred after your business commences are deductible for tax purposes.
However, as a concession, IRAS has clarified that revenue expenses incurred one year before the first day of the financial year in which you earn your first dollar of business receipt will be tax-deductible.
The Candoer Group empowers SMEs operationally with streamlined solutions in complex situations. We provide corporate secretarial, book keeping and tax filing services for Singapore based SMEs.
We can arrange for legal services to be provided through our alliance with Peter Low LLC. We also work with our partners at Wrike to implement collaboration solutions suitable for your needs.
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