Corporate Tax: Start-up Exemption Scheme

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Corporate tax is the tax that is charged to the income or capital of the company.

- What are full and partial tax exemptions?
New start-ups qualify for the Start-up Tax Exemption Scheme on the condition that they are not property holding companies or investments. They are also required to have not less than twenty independent shareholders. In the instance of corporate shareholders, one of the shareholders needs to possess at least 10% of all the furnished shares.
A company that fails to qualify for the Start-up Exemption Scheme program is normally offered partial tax exemption, which is determined by its taxable income. Companies that have taxable income of more than 100,000 SGD are imposed with a tax rate of 5.65%. On the other hand, companies with taxable income of more than 10,000,000 SGD face a tax rate of 16.44%. It is wise to seek the entire list so as to discover the category of your company and the applicable tax rate.

- What are the common mistakes made when claiming for deductions against company income?
Some mistakes that people usually make when deducting against company income is when they underestimate income, request to deduct their expenses which are unable to be deducted, request for remuneration relevant groups and also claiming the wrong expenses which are mainly the keeping of records that are not complete, estimations as well as their failure to keep up with business records for 5 years.

- The deduction of medical expenses &

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