Yes. Under the Start-Up Tax Exemption (SUTE) scheme, a qualifying new company enjoys a 75% exemption on the first S$100,000 of normal chargeable income and a further 50% exemption on the next S$100,000, giving a maximum exemption of S$125,000 in each of its first three consecutive Years of Assessment.
To qualify, the company must be incorporated in Singapore, be a tax resident of Singapore for that Year of Assessment, and have no more than 20 shareholders throughout the basis period – all of whom are individuals, or with at least one individual holding at least 10% of the ordinary shares. Investment holding companies and companies undertaking property development for sale or investment are excluded.
From the fourth Year of Assessment onwards, and for companies that do not qualify for SUTE, the Partial Tax Exemption (PTE) applies instead: 75% of the first S$10,000 and 50% of the next S$190,000, up to S$102,500.
Apexia can confirm whether your company qualifies and make sure the exemption is applied correctly in your tax computation.