Singapore Tax Reliefs for Companies

Singapore's pro-business tax regime offers numerous tax reliefs to encourage growth, innovation, and global competitiveness. Understanding these reliefs can significantly reduce tax liabilities and improve profitability.

Tax Reliefs are designed to:

• Encourage business innovation and expansion.
• Support start-ups and SMEs.
• Attract foreign investments and talents.
• Foster a pro-enterprise environment.

Key Tax Reliefs for Companies

1. Start-Up Tax Exemption (SUTE)

Supports newly incorporated companies by offering tax exemptions for the first three years:

• 75% exemption on the first S$100,000 of chargeable income.
• 50% exemption on the next S$100,000.

2. Partial Tax Exemption (PTE)

For companies not eligible for SUTE:

• 75% exemption on the first S$10,000 of chargeable income.
• 50% exemption on the next S$190,000.

3. Corporate Income Tax (CIT) Rebate

• Up to 20% rebate on CIT payable, capped at S$10,000.
• Applies to all eligible companies.

4. Research and Development (R&D) Tax Deductions

• 250% tax deduction on qualifying R&D expenses.
• Must be conducted in Singapore.

5. Double Tax Deduction for Internationalisation (DTDi)

• 200% tax deduction on qualifying expenses related to overseas expansion.
• Includes trade fairs, market research, and feasibility studies.

How to Claim Tax Reliefs

• Ensure Eligibility: Verify criteria for each relief.
• Maintain Accurate Records: Keep supporting documentation.
• File Tax Returns Promptly: Declare claims in Form C or Form C-S.
• Engage Professional Services: Ensure compliance and maximize claims.

Common Mistakes to Avoid

• Incorrect or incomplete filings.
• Overlooking eligibility criteria.
• Missing deadlines.

How Apexia Corporate Advisory Can Help

• Tax Planning and Advisory: Identify optimal tax reliefs.
• Tax Compliance Support: Ensure accurate filings.
• Audit Preparation: Assist with IRAS documentation.
• Application Assistance: Support grant and tax incentive applications.