Singapore Partial Tax Exemption

Singapore Partial Tax Exemption | Bestar

Singapore SME Tax Relief

Singapore Partial Tax Exemption

Singapore offers a partial tax exemption scheme to support small and medium-sized enterprises (SMEs). This scheme provides tax relief on a portion of the company's chargeable income.

Here's a breakdown of the partial tax exemption:

• Chargeable income up to $300,000:

  
  

  • 75% tax exemption on the first $10,000 of chargeable income

  • 50% tax exemption on the next $290,000 of chargeable income

Important Notes:

• The partial tax exemption is automatically applied when you file your corporate income tax return.

• This scheme is designed to help SMEs grow and establish themselves in Singapore.

Additional Information:

You can find more details about the partial tax exemption scheme on the Singapore Inland Revenue Authority (IRAS) website: https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes 

How Bestar can Help

Bestar, a leading provider of corporate secretarial services and tax advisory in Singapore, can help businesses maximize the benefits of the partial tax exemption scheme through the following ways:

1. Eligibility Assessment:

• Understanding the Criteria: Bestar can help you determine if your business meets the specific eligibility criteria for the partial tax exemption, such as company size, industry, and revenue thresholds.

• Identifying Potential Exemptions: We can assess your business operations to identify areas where tax exemptions or reliefs might be applicable.

2. Tax Planning and Optimization:

• Strategic Tax Planning: Bestar can develop tailored tax strategies to minimize your tax liability while maximizing the benefits of the partial tax exemption.

• Identifying Tax-Efficient Structures: We can help you structure your business operations in a tax-efficient manner to optimize the utilization of the exemption.

3. Compliance and Reporting:

• Accurate Record-Keeping: Bestar can assist in maintaining accurate financial records and documentation to support your tax claims.

• Timely Filing of Tax Returns: We can ensure that your tax returns are filed on time and accurately to avoid penalties.

• Staying Updated on Tax Regulations: Bestar keeps abreast of the latest tax regulations and updates to ensure compliance.

4. Representation and Advocacy:

• Handling Tax Audits: If your business is selected for a tax audit, Bestar can represent you and provide expert advice to minimize potential liabilities.

• Advocating for Tax Benefits: We can advocate for your business's interests with the Inland Revenue Authority of Singapore (IRAS) to ensure you receive all eligible tax benefits.

By leveraging Bestar's expertise, businesses can maximize the benefits of the partial tax exemption scheme and ensure compliance with Singapore's tax regulations.

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