Incentives for Doing Business in Singapore – Singapore Guide | Doing Business in Singapore – ASEAN Briefing

China Briefing is a premium source for news insights about doing business in China, contributed to by dozens of on-the-ground experts and investment professionals. It publishes business, industry and foreign direct investment news, as well as tax, legal, accounting, and HR regulatory updates.
Companies setting up in Singapore are eligible for various fiscal and non-fiscal incentives.
Assistant Manager, Corporate Accounting Services
Applicants must fulfill rigorous requirements, which include committing to certain levels of investments, introducing leading-edge skills, and technology, as well as contributing to the growth of research and development and innovation capabilities. Given the diverse incentives available for businesses, foreign investors should consult registered local advisors to determine which incentives will be applicable to them and their sector. 
The Progressive Wage Credit Scheme (PWCS) aims to help employers adjust to mandatory increases for lower-wage workers. 

WATCH

Succeed in Singapore – Implementing Best Compliance Practices from Day One

This video is unavailable in your region. Please enable VPN to view

The scheme enables the government to co-fund the wage increases of Singaporean employees earning a gross monthly wage of up to S$3,000 (US$2,213). Singaporean residents and permanent resident employees are eligible for the scheme.
Under the scheme, employees can receive support for gross monthly wage increases up to S$2,500 (US$1,844) from 2022 to 2026, as well as support for gross monthly wage increases above S$2,500 (US$1,844) and up to S$3,000 (US$2,213) from 2022 to 2024. Eligible wage increases will be cofounded for a period of two years. Eligible employers do not need to apply and will be informed by the Inland Revenue Authority of Singapore (IRAS) of any payouts.
Co-funding Levels for Wage Increases in Singapore
Qualifying year
First-tier
Second-tier
 
Gross monthly wage less than S$2,500 (US$1,844)
Gross monthly wage of more than S$2,500 (US$1,844) and up to S$3,000 (US$2,213)
2022
75%
45%
2023
75%
45%
2024
30%
15%
2025
30%

2026
15%

There are four main government agencies that can administer business and tax incentives for Singaporean entities in specific domains. These are:
A full list of industry-specific incentives can be found on the individual websites of these agencies. The industries eligible for tax incentives are:
The Startup SG Tech grant helps to fast-track the development of technology startups, aimed at supporting the Proof-of-Concept (POC) and Proof-of-Value (POV) for commercialization of innovative technologies.
The grant cap for POC will remain at S$250,000 (US$185,000) and POV at S$500,000 (US$371,000). Qualifying projects must:
The Start-Up Tax Exemption (SUTE) tax exemption scheme aims to support new businesses and entrepreneurs in the country.
Tax exemption
Chargeable income
75%
On the first S$100,000 (US$73,770)
50%
On the next S$100,000
This scheme is only available for the first three-yearly assessments. After this period, companies can apply for the partial tax exemption scheme (PTE).
To qualify, businesses must:
Businesses must not be:
Companies that do not qualify for SUTE may be eligible for the Partial Tax Exemption (PTE) scheme.
Tax exemption
Chargeable income
75%
On the first S$10,000 (US$ 7,400)
50%
On the next S$190,000 (US$140,000).
The three types of enterprise financing scheme are:
For an in-depth understanding of the different financing schemes, click here.
There are several types of incentives available for small and medium sized enterprise, such as:
The enterprise financing scheme – merger and acquisitions (EFS-M&A) has been enhanced for four years from April 1, 2022, to March 31, 2026, and to include domestic M&A activities.
Under the scheme, the maximum loan quantum is S$50 million (US$36.9 million) per borrower or borrower group, and the maximum loan repayment is five years. The government’s risk share is 50 percent, but this is increased to 70 percent for young enterprises.
Most DTDi deductions are subject to approval from ESG and the Singapore Tourism Board. However, certain activities do not require approval on the first S$150,000 (US$110,656) of eligible expenses. The DTDi supports businesses in four categories and several sub-categories:
The investment allowance incentive is administered by the EDB, from which businesses can enjoy a tax exemption of up to 100 of fixed capital expenditure incurred.
The EDB defines fixed capital expenditure as expenditure incurred for qualifying projects within a five-year period, which can be extended up to eight years.
An extension of the 100 percent Investment Allowance (IA) scheme has been granted by the government until 2023. The approved 100 percent IA support is capped at S$10 million (US$7.4 million) and is part of the Automation Support Package (ASP), which comprises the following grants, loans, and tax support:
The ASP support itself ended on March 31, 2021, but the 100 percent IA scheme will still be available.
This program offers tax relief that can be used to offset taxable income for approved automation projects by the EDG and ESG. The approved projects by the EDB include, among others:
The category for expenditures covered by the investment allowance consists of:
The Enterprise Development Grant (EDG) helps Singapore businesses grow and innovate. The grant helps fund 50 percent of the project costs from April 1, 2023 until March 31, 2026.
The grant supports projects under three pillars:
Businesses engaging in the manufacture of high-value-added products or services can apply for a pioneer certificate which entitles them to tax exemption for five years and can be extended depending on the company’s commitment to further expansion.
To qualify, applicants are assessed on qualitative and quantitative criteria. This includes:
To encourage businesses to engage in innovation and R&D, the government introduced the Enterprise Innovation Scheme (EIS) in Budget 2023. EIS enhances as well as introduces new tax measures for qualifying companies.
There are five qualifying activities as stated below:
After the pioneer tax incentive period has ended, businesses can attain the Development and Expansion Incentive (DEI). This awards companies that migrate to business activities that add more value (such as investing in projects that advance key industries like manufacturing), with a five to 10 percent tax break. The tax relief period is subject to a maximum of 40 years.
Singapore will accelerate the digital transformation of local businesses through three strategies:
The government has issued the (CTO)-as-a-Service scheme that enables SMEs to tap professional IT consultancies to receive end-to-end digital solutions based on their company’s profile. These consultants have expertise in areas, such as artificial intelligence, data analytics, and cybersecurity.

Did You Know

The digital consultants will be managed by IT firms appointed by the Infocomm Media Development Authority (IMDA) and will be selected based on their relevant industry experience and reputation.

 
The service will be available to all registered SMEs in the form of a web application.
To develop digital leaders, the DLP seeks to identify high-potential, promising companies and equip them with the digital capabilities to transform their businesses.
The DLP will support companies to:
The program will initially support 80 companies beginning with those more advanced in their use of digital technologies, providing up to 70 percent on qualifying costs. Eligible firms will participate in an initial two-year pilot.
To increase the speed of digital innovation and drive more collaboration, the government has enhanced the Open Innovative Platform (OIP) initiative. The OIP was launched in 2018 to support businesses in getting resources to meet their innovative needs effectively.
The OIP has been enhanced to include two new features:
The government hopes that the OIP will lead to more co-innovations, and the fast-track development of prototypes, reducing the time for products and services to be commercialized.
The withholding tax (WHT) exemption for payments for the first four cases listed below has been extended until December 31, 2026. The WHT exemption for the fifth case lapsed on December 31, 2022.
Assistant Manager, Corporate Accounting Services

Our business intelligence teams can help determine how you can benefit from Singapore’s business incentives.
Explore This Service Contact personnel near you
CHANGE SECTION
Hi there!
Let me show you how I can be of assistance.
I can help you find and connect with an advisor, get guidance, search resources, or share feedback about this site.
Please select what you’d like to do:
Hi there!
Our contact personel in Italy is:

profile Alberto Vettoretti
Please select what you’d like to do:

Please share a few details about what guidance you seek. We can have a suitable advisor contact you within one business day.

Type keyword to begin searching…

source

Scroll to Top
best ai toolss for students|छात्रों की बल्ले बल्ले Top 10 Mistakes to Avoid During RBSE Board Exams: Expert Tips for Success Mastering RBSE 10th English Exam 2024: Top 10 Tips and Tricks” RPSC LATEST JOBS ASSITANT PROFESSOR Hrithik Roshan fitness