How to reduce your corporate tax in Singapore?

The Start-up Tax Exemption Scheme, introduced by the Singapore government, is meant to encourage entrepreneurship and also the growth of local businesses. to learn from the Start-up Tax Exemption Scheme program, a business in Singapore must:

Secondly, companies in Singapore not eligible for Start-up Tax Exemption Scheme can still have the benefit of the partial tax exemption in order to reduce corporate tax. The businesses concerned are those having been incorporated for over 3 years in Singapore, have over 20 shareholders, or belong to the investment and property development sectors.

First, the Business and IPC Partnership Scheme allows for a 250 percent deduction from Singapore corporation tax on qualified costs paid when workers volunteer, professional services are provided, or services are provided to designated Public Character Institutions.

Second, in Singapore, public benefit institutions that are tax-exempt or registered charities can provide tax-deductible receipts for gifts made to them. As a result, they must adhere to a greater level of regulatory compliance and control than conventional charities.

Furthermore, if you are a company’s employee in Singapore in order to reduce corporate tax thanks to the Business and IPC Partnership Scheme program, you must:
1. Not be an owner, sole proprietor, partner, or shareholder who holds executive positions in the company.

2. Not be employed in an investment holding company.

3. Incurring expenses for voluntary services provided to Public Character Institutions during work hours and on the Public Character Institutions’ premises are:

Finally, for each fiscal year, allowable costs are limited to S$250,000 per corporation and S$50,000 every individual Public Character Institution.

First, the Double Tax Deduction for Internationalization program aims to encourage Singapore companies to expand internationally.

Secondly, there are several tax deductions under the Double Tax Deduction for Internationalization, which automatically benefit from tax deductions without the need for further approval. These include:

Finally, to be eligible for Double Tax Deduction for Internationalization, a business in Singapore must:

Initially, the Regional Headquarters Award is administered by the Singapore Economic Development Board to encourage global companies to base their regional operations in Singapore. As a result, it advances Singapore’s status as a regional business hub.

Secondly, companies benefiting from the Regional Headquarters Award pay a reduced Singapore corporate tax rate of 15% on the incremental income from eligible activities for 3-5 years, subject to meeting and maintaining all prescribed conditions throughout the award period. To qualify for the Regional Headquarters Award, Singapore’s companies must meet the following criteria:

Finally, the Singapore Economic Development Board has also administered the International Headquarters Award. As such, companies looking to establish their international headquarters in Singapore can therefore apply and benefit from the award, which qualifies them for Singapore’s corporate tax rates of 5% to 10%. This award is also a way to reduce corporate tax.
Thus, any company wishing to apply for the International Headquarters Award must be locally incorporated or registered in Singapore and committed to exceeding the Regional Headquarters Award’s minimum requirements.
For companies to establish their headquarters in Singapore, they must meet certain requirements:

1. The company must be recognized in the industry, have the extensive capacity in human resources, assets, capital, and market share.

2. The headquarters must be the organization’s center for the general direction of major operations with well-defined management and control procedures;

3. The company should move most of its headquarters from the Singapore office. These operations may consist of controlling marketing, brand planning and management, strategic business planning, and development. It may also consist of research, development, and bedding new concepts’ tests. Finally, it also involves, the management, professional, technical, and support staff employed by the company to manage the head office operations must be based in Singapore.

The Pioneer Certificate and Development and Expansion Incentive programs were set up to encourage Singapore companies to conduct new business activities and expand their production capabilities.

Criteria for Pioneer Certificate and Development and Expansion Incentive companies include:

The Land intensification Allowance is an initial tax allowance of 25% and an annual tax allowance of 5% based on capital expenditure incurred for the construction or renovation or extension of a qualifying building or structure.
Then, companies would need to meet the following key conditions:

1. Qualifying building or structure built on industrial land, Airport, or Portland.

2. The company is engaged in specified manufacturing or logistics activities.

3. Intensified use of the land meets the prescribed gross plot ratio benchmarks for specified manufacturing or logistics activities. Then an incremental 10% gross plot ratio applies to buildings or structures that have already met the prescribed gross plot ratio benchmarks.

The integrated investment allowance is an allowance provided based on a percentage of approved fixed capital expenditure incurred on productive equipment that is placed outside Singapore for an approved project. It is significant to know that the allowance can only be set off against chargeable income derived from the approved project.

Thus, the company’s project should be for the following activities: