Qualifying start-up companies are granted tax exemptions for their normal chargeable income for their first three consecutive YAs. Where any of the first 3 YAs falls in or after YA2020:
First $100,000 of chargeable income is 75% exempt - $75,000
Next $100,000 of chargeable income is 50% exempt - $50,000
Up to - $125,000
The conditions to qualify for the start-up exemption are that the company must be Singapore incorporated and be a Singapore tax resident with no more than 20 shareholders where all shareholders are individuals or, at least one of the shareholders must be an individual who beneficially and directly owns at least 10% of the total number of issued ordinary shares.
Property developers and investment holding companies do not qualify for the start-up exemption.