TaxSavvySG

Partial tax exemption

How much is exempt for a company not in start-up years?

The situation

Partial tax exemption exempts 75% of the first S$10,000 and 50% of the next S$190,000.

The law

  • Income Tax Act 1947, partial tax exemption: 75% of first S$10,000 and 50% of next S$190,000 of chargeable income exempt

What it means for you

Maximum exempt amount is S$102,500. On S$200,000: exempt 102,500; taxable 97,500 x 17% = 16,575 before rebate. Partial exemption applies automatically when the company is not on the start-up exemption. Apply the YA rebate after the exemption.

What to do

  1. Compute chargeable income.
  2. Apply PTE.
  3. Compute tax.
  4. Apply rebate.

We can do this for youForm C-S, C-S Lite or Form C with exemptions and rebate: SGD 900

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