To encourage local entrepreneurship, Singapore Government has declared a full tax exemption for newly incorporated companies.
NEW START UP COMPANIES
| Full tax exemption is granted on the first $100,000 of Chargeable Income for qualifying new companies for the first tdree years of assessment consecutively. |
(%) |
| First $100,000 |
Nil |
| $100,001 to $300,000 |
9 |
| Thereafter a Flat Rate of |
18 |
Note: *A qualifying new company must fulfill the following conditions:
- It is incorporated in Singapore;
- It is a tax resident of Singapore for that Year of Assessment;
- It has no more tdan 20 shareholders throughout the basis period relating to that Year of Assessment
- All its shareholders are individuals throughout the basis period relating to that Year of Assessment.
Tax Rates for Companies for Year of Assessment 2008 and for those who do not qualify for the New Start up exemption rates
| Amount of chargeable income |
Effective tax rate |
| First $10,000 |
4.5% |
| Next $290,000 |
9% |
| In excess of $300,000 |
18% |
Stamp Duty - Property Transfer
| Value of property |
Rate (%) |
| First S$180,000 |
1.0 |
| Next S$180,000 |
2.0 |
| thereafter |
3.0 |
There is no tax in Singapore on Capital Gain.
Tax Incentives
To encourage foreign capital inflow into Singapore, there are tax incentives provided to various industries namely in the form of reduced corporate tax rates
| Finance & Treasury Centre Co. |
10% |
| Fund Manager |
10%/exempt |
| Headquarters Co. |
10% |
| International Commodity Trader |
10% |
| Offshore Leasing |
10% |
| Oil Trader |
10% |
| Securities Company |
10%/exempt |
| Trustee Company |
10% |
| Arts & Antique Dealers |
10% |
| Asian Currency Unit |
10%/exempt |
| Insurance & Re-insurance Co. |
10%/exempt |
| Members of Commodity Futures Exchange |
10% |
| Pioneer/Incentive Co. |
Exempt/Various |
| Financial Sector Incentive Co. |
5%/10% |
| Cyber Trader |
10% |
| Commodity Derivatives Trader (New) |
5% | |
