TaxSavvySG

Start-up exemption third year

Is this our last year of start-up exemption?

The situation

Start-up exemption applies to the first 3 YAs.

The law

  • Income Tax Act 1947, start-up tax exemption: First 3 YAs: 75% of first S$100,000 and 50% of next S$100,000 exempt, for qualifying new companies
  • 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

After YA 3, partial exemption applies. Plan for higher tax. Investment holding and property development companies cannot use the start-up exemption at all. From YA 4, partial exemption gives up to S$102,500 of exempt income.

What to do

  1. Count YAs.
  2. Apply SUTE or PTE.
  3. Forecast.
  4. Plan cash.

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

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