Generous incentives and tax savings are in store for companies that take steps to move up the value-chain and create better jobs for residents. Rikvin, a leading Singapore company registration specialist, acknowledges that newly-incorporated companies stand to benefit as well.
Analysis by Rikvin shows that government effort is part of a larger strategy to mobilize Singapore-based companies to become more operationally effective, knowledge-intensive and innovation-driven as the country undergoes a massive economic changes.
“Businesses that aim to operate here must understand that Singapore is focused on mitigating future challenges as well as remaining relevant amid greater competition. To help companies align themselves to this larger goal, and shape the country’s future workforce and economy, the Singapore government will continue to offer a number of incentives. Companies that opt for incorporation in Singapore will be eligible for the following benefits.
1) Singapore Corporate Income Tax Rebates
To help companies cope with increasing business costs during the virus period, a special corporate income tax rebate will be granted
At a rate of 25 per cent of tax payable, capped at S$15,000 per company, this rebate will benefit all tax-paying companies for year of assessment 2020.
To put more cash in the hands of enterprises, several tax treatments under the corporate tax system will also be enhanced for year of assessment 2021.
2) Start-up Tax Exemption Scheme (SUTE) and Partial Tax Exemption (PTE)
All startup companies YA 2020 onward will be given
- - 75% exemption on the first $100,000 of normal chargeable income*; and
- - A further 50% exemption on the next $100,000 of normal chargeable income
Read more about tax savings tips For companies that opt for incorporation in Singapore at Rikvin.com.
