Tax Planning

To remain competitive, businesses must plan their taxes effectively to minimize their tax liabilities.

Tax planning is the process of forecasting one’s tax liabilities through the best use of all available allowances, deductions, reliefs and exemptions.

Available Tax Incentives

The main advantage tax planning is to effectively leverage available tax incentives. The following list shows some of the available tax incentives for companies:

Start-up Tax Exemption

For qualified newly incorporated companies for the first 3 consecutive years of assessment (YA)

• 100% tax exemption on the first $100,000 of normal chargeable income;
• and 50% on the next $200,000 of normal chargeable income

Partial Tax Exemption

For companies that did not claim Start-up Tax Exemption

• 75% tax exemption on the first $10,000 normal chargeable income;
• and 50% tax exemption on the next $290,000 normal chargeable income

Productivity and Innovation Credit (PIC) Scheme

For all businesses that have active business operations in Singapore

• 400% tax deductions up to $600,000;
• and/or 60% cash payout up to $100,000 on qualifying expenditure during the basis period of the qualifying YA

What is Productivity and Innovation Credit Scheme (PIC)?

Benefits of PIC+ Scheme

Tax Deductions
From YA15 to YA18, 400% tax deductions up to $600,000 of total qualifying expenditure incurred.

AND / OR

Cash Payout
60% of up to $100,000 of total qualifying expenditure incurred into non-taxable cash payout.