Launching a startup in Singapore opens doors to many opportunities — and if you’re savvy about managing taxes, it also opens the door to real savings. Singapore’s tax system offers generous exemptions for startups, helping new businesses keep more of their profits during the critical early years.
Understanding how tax exemptions for startups work, and applying them correctly, is essential to maximising your savings and staying compliant. Here’s what you need to know.
When your business is just getting off the ground, every dollar saved makes a difference. Tax exemptions allow startups to reduce corporate income tax, free up cash flow, and reinvest in growth — whether it’s hiring, marketing, or product development.
Many businesses miss out on these benefits due to lack of awareness or poor planning. Effective tax management ensures that your startup not only benefits from these schemes but also avoids penalties or missed opportunities.
Singapore supports new businesses with two key exemption schemes: Start-Up Tax Exemption (SUTE) and Partial Tax Exemption (PTE). Here’s a breakdown of how they work.
The SUTE scheme is available to qualifying startups for their first three Years of Assessment (YAs).
As of 2025, SUTE allows the following exemptions:
Maximum total exemption per year: S$125,000
Note: Startups in investment holding or property development are excluded from SUTE eligibility.
Startups not eligible for SUTE, or beyond their first three YAs, may claim the PTE scheme, which applies to all companies.
As of 2025, PTE allows:
Maximum exemption per year: S$102,500
This ongoing relief supports small and growing businesses long after the startup phase.
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To fully benefit from these exemptions, startups must not only know about them — they need to apply them correctly, while meeting compliance requirements. Here’s how structured tax management helps:
Startups must confirm they meet SUTE criteria, especially around shareholder structure and business activities. Incorrect assumptions could lead to missed exemptions or incorrect filings.
All companies must file their Estimated Chargeable Income (ECI) within three months from their financial year-end — unless exempted by IRAS. Missed deadlines can disqualify startups from exemptions.
Additionally, corporate tax returns (Form C-S/ Form C-S (Lite)/ Form C) are due by 30 November each year.
Knowing what income and expenses to include can affect the chargeable income amount — and therefore, your exemption. Proper tracking ensures accurate tax estimation and planning.
Tax regulations evolve. Staying updated ensures that you not only maintain compliance but also take advantage of any new reliefs or changes in eligibility.
To make the most of tax exemptions:
Singapore’s tax exemptions for startups are designed to support business growth from day one. By understanding and applying SUTE and PTE schemes, startups can significantly reduce tax liabilities, free up capital, and reinvest where it matters most.
Proper tax planning is not just about ticking boxes — it’s about putting your startup in the strongest financial position to grow.
Stop coordinating between different providers. Counto’s combined accounting and tax plans give you a single solution at a predictable price. Our intelligent platform manages your books while tax experts handle your filing. Want to learn more about our all-in-one plans? Chat with us now, email [email protected], or use our contact form.
Here are some articles you might find helpful:
Provisional Tax Planning: How Small Business Owners Can Avoid Year-End Surprises
How Accounting Services Simplify Estimated Chargeable Income (ECI) Filing
Bank Feed Integration in Accounting: Why it Matters for Small Businesses
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