List of Tax Incentives 2018 for Singapore SME You Should Know

Here are Tax Incentives 2018 in Singapore You Shouldn’t Miss

Even if the tax ratio in Singapore is meager in comparison to other countries, you might still need some support when you are making bigger investments. There are many tax incentives in Singapore which have been minimizing investors’ tax requirements. As an owner or an investor in Singapore SME, you should know about them. To help you with that, we bring the list of tax incentives 2018 in Singapore.


Double Tax Deduction for Internationalization

Double Tax Deduction for Internationalization a program which lets companies in Singapore claim a 200% of tax refunds on the eligible expenses for expanding their business in the foreign market. This scheme, as its name suggests is to motivate the business houses to make more investments in the global market, which will contribute to the country’s economy and reach. For the eligible expenses such as overseas business trips, international trade fairs, foreign advertising, etc., the companies will get a tax reduction up to 200% for the first S $100,000 they pay, which set to be increased to $1,50,000 in 2019 YA.

Among the expenses, some are labeled as automatic DTDi while some are not, meaning that for those which are rated with an automatic DTDi, you will not require any approvals from Enterprise Singapore or Singapore Tourism Board to enjoy the scheme. While for others and any expenses more than S $100,000, you will need approval. Here is the link where you could register for the program and make an application.


Angel Investors Tax Deduction (AITD)

Another incentive on our list of tax incentives 2018 is the Angel Investors tax Deduction (AITD). This is a tax incentive program benefitting the angel investors, through which they can enjoy a tax deduction of up to 50% on their investments on a qualifying startup business. However, for this, they will have to invest at least $100,000 with a two-year holding period. The investments are set to a cap of $500,000 every year of assessment, and only the qualified investments are subject to the scheme.

To apply for this incentive, you will need to fill this application form and send it along with every other document like a CV that shows that you are a qualified investor with a great deal of business understanding and track records to this address.

AITD Administrator
Startup & Global Innovation Alliance Division
Enterprise Singapore
1 Fusionopolis Walk
#01-02 South Tower, Solaris
Singapore 138628


Section 13H Tax Incentive (S13H)

Section 13H is an incentive for venture capital and private equity funds. These funds provide an approved fund with a zero- rate tax relief for a maximum period of 10 years. The incentive will apply for tasks such as:

  • profit generated from the divestment of affirmed portfolio properties
  • dividend income generated from the overseas portfolio companies
  • profit from the interests of approved foreign convertible loan stock

To enjoy the scheme, your company should be currently operating in Singapore. Also, you will need to ensure that you complete all the licenses which the Monetary Authority of Singapore requires. 

To apply and for more information, you can contact Enterprise Singapore.

List of Tax Incentives 2018 for Singapore SME You Should Know


Fund Management Incentive (FMI)

This is the final one in our list of tax incentives 2018 in Singapore. The Fund Management Incentive is a scheme for fund management companies. This puts them at a tax relief of 5% for a period of 10 years. The scope of this incentive includes:

  • management fees coming from an approved venture capital fund
  • performance bonus from the particular venture capital fund

The requirements and the application process for the Fund Management Incentive similar to the Section 13H tax incentive. First, your company should be registered and operating in Singapore. You will also need to acquire all the necessary licenses from the Monetary Authority of Singapore. And to apply, you will have to contact Enterprise Singapore as well.

Well, these were the tax incentives 2018 in Singapore. I hope this article will help you.