Tax · 5 min read · July 21, 2026
Singapore's start-up tax exemption, explained
How new companies pay far less tax in their first three years — and who qualifies.
New companies can claim the Start-up Tax Exemption (SUTE) for their first three Years of Assessment, as long as they have no more than 20 individual shareholders and at least one holds 10% or more.
How it works
75% of the first S$100,000 of chargeable income is exempt, and a further 50% of the next S$100,000. That's S$125,000 of exempt income on the first S$200,000.
Who doesn't qualify
Investment holding companies and property developers are excluded. After year three, the partial tax exemption applies instead.
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Talk to usThis guide is general information, not tax or legal advice. Rules change — check with your accountant before acting.
