Reduced Tax Exemptions to Have Minimal Impact on Singapore Start-ups

The lower tax exemptions in the Budget 2018, will have ‘minimal’ impact on startups, as those will turn profitable till the time the tax change will take effect, and there are also other Govermental initiatives and grants for the support of these kinds of businesses.

Simply, most of the startups in Singapore are in their early stages and continue to redirect their funds into product development and market expansion.

Briefly, changes to take effect on or after Year of Assessment 2020, will lower to SGD $200,000 the startup’s chargeable income, Partial Tax Exemption will restrict to the first SGD $200,000 taxable income.