Full Tax exemption
The full tax exemption for newly established companies was introduced in 2005 to widen
SMEs every opportunity to thrive and succeed. Under this condition, new start-up companies
are granted tax exemption on the first SGD 100,000 of their chargeable income derived in
each of their first three years of operation that fall within 2005 to 2009.
The 2009 expiry date was removed in the recent 2007 Budget to enable all new companies to
apply a full three years of tax exemption. In addition, effective from 2008, a further 50%
exemption will be given on the next SGD200,000 of chargeable income derived by new
companies.