The corporate taxation in Singapore has contributed a major part in the Singapore’s worldwide popularity as a pro-business country. Basically, there are so many benefits available in incorporating a business in Singapore, but the most important one is tax benefits for the new startup companies. In order to know more about this taxation, you just refer the corporate tax guide Singapore and understand the fundamental requirements. The new startups always enjoy the tax benefits for the initial tax three years. From the fourth tax year onwards, the initial $10, 000 net incomes enjoys 75% tax exemption and the next $290, 000 enjoys 50% tax exemption. This means that after fourth year, the company effectively enjoys the net profit of $300, 000 and $152, 500 tax exemptions, which make it about 51% of the net taxable profits.
Actually, most of the new startups in Singapore are usually the small companies with limited resources. Hence, they would try and save on the first incorporation costs. Usually, they are also deprived of the necessary tax planning considerations that need to be taken into the consideration in this initial starting stage. If you are in the initial state of incorporation and want to make an informed decision on this kind of company to incorporate, you just approach the consultancy that gives all the necessary tax advice. Once setup the new company, they will need expert help in meeting the different filling regulations. If the perfect procedures are followed, the experience of setting up a company in Singapore is a gentle wind.