q Tax Exemption for New Companies

A new tax exemption scheme will be introduced for start-up companies. Companies which qualify for this scheme will enjoy full tax exemption on the first $100,000 of normal chargeable income (excluding Singapore dividends) for up to three years of assessment. This exemption will apply for all the first three years of assessment that fall within the period from YA 2005 to YA 2009.

The first year of assessment of a qualifying company is the year of assessment that relates to the basis period in which the company is incorporated.

All of the following conditions have to be met for a new company to qualify for the full tax exemption for a relevant year of assessment: