Besides grants, smaller financial institutions can also tap on IRAS’ tax exemption schemes and other tax reliefs that can help reduce their tax bills in a particular Year of Assessment (YA). 

Tax Schemes to Lower Tax Payable

Start-up companies are given tax exemption for the first three consecutive YAs which includes:

• 75% exemption for the first $100,000 of normal chargeable income
• A further 50% exemption on the next $100,000 of normal chargeable income

All companies Companies who claimed tax exemption for new start-up companies are not eligible for partial tax exemption. are given partial tax exemption for subsequent YAs which includes:

• 75% exemption for first $10,000 of normal chargeable income
• A further 50% exemption on the next $190,000 of normal chargeable income

For more information on the tax schemes and the qualifying conditions, please refer to IRAS’ website . 

All companies are also given corporate income tax rebate which includes 25% corporate income tax rebate on final tax payable for YA 2020 (capped at $15,000).

For more information on the corporate income tax rebate, please refer to IRAS’ website . 

Carry Forward Losses to Reduce Tax Payable

Unutilised trade losses can be carried forward indefinitely for set-off against future years’ taxable income which reduces tax payable.

For more information on the qualifying conditions, please refer to IRAS’ website .

Financial Sector Tax Incentive Schemes

Additional tax incentives are available for financial institutions with plans to establish or expand their operations in Singapore.

For more information on the qualifying conditions, please refer to the scheme webpage.