The SUTE scheme, also known as the Start-Up Tax Exemption (SUTE), is a tax incentive introduced by the Singapore government to encourage new companies to set up and operate in the country. The scheme provides a tax exemption on the first S$100,000 of normal profits for the first three consecutive years of operation. This exemption is designed to help new companies start their operations without worrying about the added burden of corporate taxes, allowing them to focus on growing their business and creating employment opportunities in Singapore.
Eligibility Criteria
———————
To be eligible for the SUTE scheme, a company must meet the following criteria:
* Be a new company incorporated in Singapore, with a certificate of incorporation issued on or after January 1, 2008
* Have a maximum share capital of S$1 million or less
* Be a company that is not a listed company on the Singapore Exchange (SGX)
* Be a company that is not a subsidiary of a listed company
* Be a company that is not a companies limited by guarantee
Application and Approval Process
——————————
To apply for the SUTE scheme, companies must submit an application to the Inland Revenue Authority of Singapore (IRAS) within 12 months from the date of incorporation. The application must be accompanied by a detailed business plan, including information on the company’s business activities, financial projections, and management structure. The IRAS will review the application and may request additional information or clarification before making a decision on the application.
Tax Exemption
————–
The SUTE scheme provides a tax exemption on the first S$100,000 of normal profits for the first three consecutive years of operation. This exemption is applicable to both regular and non-regular income, and is subject to the following conditions:
* The company must have a taxable income of at least S$100,000 in each of the three consecutive years
* The company must not be a company that is exempt from tax under other tax incentives, such as the PIC scheme or the EIR scheme
* The company must not be a company that is subject to a tax audit or investigation by the IRAS
Conclusion
———-
The SUTE scheme is an attractive option for new companies looking to set up and operate in Singapore. The tax exemption provides a significant relief on corporate taxes, allowing companies to focus on growing their business and creating employment opportunities in Singapore. To be eligible for the scheme, companies must meet certain criteria and submit an application to the IRAS within a specified timeframe. By understanding the eligibility criteria, application and approval process, and tax exemption conditions, new companies can take advantage of this attractive incentive and start their operations in Singapore on a strong footing.
FAQs
—-
**Q: What is the SUTE scheme?**
A: The SUTE scheme, also known as the Start-Up Tax Exemption (SUTE), is a tax incentive introduced by the Singapore government to encourage new companies to set up and operate in the country.
**Q: What are the eligibility criteria for the SUTE scheme?**
A: To be eligible for the SUTE scheme, a company must be a new company incorporated in Singapore, with a maximum share capital of S$1 million or less, and not be a listed company on the Singapore Exchange (SGX).
**Q: How do I apply for the SUTE scheme?**
A: To apply for the SUTE scheme, companies must submit an application to the Inland Revenue Authority of Singapore (IRAS) within 12 months from the date of incorporation, accompanied by a detailed business plan.
**Q: What is the tax exemption period for the SUTE scheme?**
A: The SUTE scheme provides a tax exemption on the first S$100,000 of normal profits for the first three consecutive years of operation.
**Q: What are the conditions for the tax exemption?**
A: The tax exemption is subject to the company having a taxable income of at least S$100,000 in each of the three consecutive years, not being exempt from tax under other tax incentives, and not being subject to a tax audit or investigation by the IRAS.
