Tax Benefits for New Start-ups


The government of Singapore gives numerous Tax Benefits for New Start-up to promote entrepreneurship in the nation. In affiliation with the Inland Revenue Authority of Singapore (IRAS) which is the tax council of Singapore, it has enforced tax deduction strategies targeted at businesses, particularly startups in Singapore. Tax related stuff can be complicated for new businesses, which is why it is best to get professional tax advisory services from companies like Morrison consultant.

As an outcome of the Singapore government’s concerted strategies, Singapore has emerged as the powerful local startup hub. Its pro-business strategies, the comfort of performing business, and efficient tax structure are the main reasons. The government always introduces new incentives and tax benefits for New Start-up Companies in Singapore to help them with their development and growth.

This article will accentuate the salient tax schemes accessible to Singapore businesses that give freedoms and deductions to the business and enable facilitate the expansion of Singapore-incorporated companies.

Ø  Tax Exemption Scheme for New Startups

  • Overview

The tax council in Singapore gives a personal tax exemption to startups for the first three appraisal years. The major purpose of this scheme is to stimulate entrepreneurship and assist new company registered office to accumulate and organize a root in the nation.

  • Eligibility

This scheme is accessible to all startup corporations in Singapore with the exception of any corporation whose:-

  1. The principal activity is that of enterprise holding; or
  2. The principal activity is that of developing properties for sale, investment, or both.

Ø  Deduction for Charitable Work

  • Overview

The government of Singapore, in alliance with the Inland Revenue Authority of Singapore (IRAS), formulated the scheme. According to this scheme, Singapore firms can benefit from a tax reduction of 250% on salaries and expenditures that they pay to their workers in case the corporation sends its employees to volunteer and expand their services to Institutions of Public Character (IPC). The major aim of this scheme is to facilitate charity in the nation.

  • Eligibility

The following are capable of this scheme:-

  1. Corporations, partnerships, sole proprietorships, and registered business trusts that run business in Singapore; and
  2. Anybody of individuals such as clubs and trade associations considered to endure business in Singapore.

Ø  Productivity and Innovation Credit (PIC) Scheme

  • Overview

This scheme offers credit to business owners. In the feature of a tax deduction. The reduction is accessible to any business that invests in actions that involve creation. The scheme is an inducement to businesses to continually invest in invention to enhance their functional efficiency and productivity which in turn facilitates the growth of the corporation.

  • Eligibility

All entities registered in the nation are permitted to the scheme and the advantages it gives. These encompass companies, partnerships, sole proprietorships, and branches or subsidiaries of foreign holding corporations.

Ø  Double Tax Deduction for International Expansion

  • Overview

This scheme helps Singapore’s business to broaden overseas. The scheme gives a 200% tax deduction on expenses made by a company for supported market development and investment growth actions abroad.

  • Eligibility

All Singapore incorporated firms whose primary objective is to facilitate the trading of goods and giving services are capable of this deduction.

Moreover, foreign companies get great help to start up and grow their business with the help of agencies like Hey Sara, which lets them incorporate and manage their business in a friendly manner.


Singapore is a nation with one of the lowest tax rates in the realm. But on top of its low prices, the nation gives several tax incentives and cash grants to enable the development of businesses thereby lessening the effective tax rates even distant.