How it works
The start-up tax exemption rewards new, locally owned companies. All conditions must hold: Singapore-incorporated, tax resident, no more than 20 shareholders throughout the basis period, all individuals or at least one individual with 10% or more, not an investment holding or property development company, and within the first three years of assessment.
Worked example
A Singapore subsidiary 100% owned by an overseas company fails the shareholder condition, so it uses the partial exemption: on S$200,000 of chargeable income, tax of S$16,575 instead of S$12,750.
Questions people ask
What is the start-up tax exemption?
Exemption of 75% of the first S$100,000 and 50% of the next S$100,000 of chargeable income for qualifying new companies, for their first three years of assessment.
Why does a group subsidiary fail?
It has no individual shareholder holding 10% or more.
What applies if we fail?
The partial tax exemption.
Sources
Last checked 1 November 2026. General information only, not advice for your situation. Speak to a qualified adviser before you act.