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Partial Tax Exemption Scheme for Companies



Partial Tax Exemption Scheme for Companies in Singapore


The Partial Tax Exemption Scheme (PTES) is a government initiative in Singapore that aims to support small and medium-sized enterprises (SMEs) by reducing their tax burden. Here's a breakdown of the scheme:


Eligibility:


  • All companies registered in Singapore are eligible for PTES, except those claiming the Tax Exemption Scheme for New Start-Up Companies.

  • Companies limited by guarantee are also included.


Exemption Tiers:


  • 75% exemption on the first S$10,000 of your normal chargeable income.

  • 50% exemption on the next S$190,000 of your normal chargeable income.


Important Notes:


  • This scheme applies to normal chargeable income, which is your taxable income after deducting allowable expenses and claims.

  • Concessionary income taxed at a lower rate (e.g., 10%) does not qualify for PTES exemption.

  • The revised PTES came into effect for Year of Assessment (YA) 2020 onwards.


Resources:



Additional Information:


  • While PTES offers tax relief, it's crucial to remember your overall tax obligations. Consulting a tax professional is recommended for personalized advice based on your specific circumstances.


How Bestar can Help


Bestar is a firm offering accounting and tax services, here's how we can help you with the Partial Tax Exemption Scheme (PTES) for companies in Singapore:


Understanding Eligibility and Calculating Benefits:


  • Reviewing your company's financial statements and tax history: Bestar can assess your company's eligibility for PTES based on factors like registration date, industry, and income levels.

  • Calculating potential tax exemptions: We can help you determine the amount of tax exemption you qualify for under the PTES tiered structure.


Preparing and Filing Tax Returns:


  • Ensuring accurate tax calculations: Bestar can ensure your tax return accurately reflects your income and claims the PTES exemption correctly.

  • Submitting your tax return electronically: We can assist with e-filing your tax return with IRAS, streamlining the process.


Tax Planning and Compliance:


  • Advising on maximizing PTES benefits: Bestar can suggest strategies to optimize your tax planning and ensure you leverage PTES effectively.

  • Staying updated on tax regulations: We can keep you informed of any changes to PTES or other relevant tax regulations that might impact your company.


Additionally, Bestar offers:


  • Communication and liaison with IRAS: We can handle communication with IRAS on your behalf regarding PTES inquiries or clarifications.

  • Recordkeeping and documentation: We can assist with maintaining proper records and documentation to support your PTES claims.


Consult with Bestar directly to understand our specific capabilities and how we can best assist you with PTES.

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