With Singapore’s Finance Minister Heng Swee Keat introducing several tax amendments in Budget 2018, we’ve highlighted the five most important ones that can impact how your organization files.
The Start-up Tax Exemption (SUTE) and the Partial Tax Exemption (PTE)
Singapore’s startup ecosystem continues to flourish and mature — but the Budget 2018 reduces the tax exemptions it enjoys.
The Startup Tax Exemption (SUTE) scheme, applicable to qualifying new startup organizations, exempts 75% — instead of the previous 100% — on the first S$100,000 of a startup's normal chargeable income. Under the revised SUTE scheme, a startup will now enjoy 50 % exemption on the next S$100,000 — instead of previous S$200,000 — of its normal chargeable income.
The Partial Tax Exemption (PTE) scheme (applicable to all companies excluding those that qualify for the SUTE scheme) has also been modified.
While a startup still enjoys an unchanged 75% exemption on the first S$10,000 of normal chargeable income, its second tier of tax will be adjusted: its next S$190,000 of chargeable income will receive a 50% tax exemption instead of the previously set cap of S$290,000.