Economic Expansion Incentives

Pioneer Status

The project introduces advanced technology, know-how or skills into eligible manufacturing and service industry

Exemption of corporate tax on profits arising from pioneer activities for a period of 5 - 10 years.

Development & Expansion Incentive

The new project or expansion/upgrading must generate significant economic spin-offs for Singapore

Corporate tax rates of 13% for up to 10 years with provision for extension

Investment Allowance

Approved project for reducing consumption of water

Exemption of taxable income of an amount up to 50% of new investment in productive equipment

Approved Foreign Loan Scheme

Minimum loan of S$200,000 for purchase of productive equipment

Full/partial exemption of withholding tax on interest payments to foreign lender

Approved Royalties

Approved royalties on eligible manaufacturing and service activities

Full/partial exemption of withholding tax on royalty payments to foreign company

Venture Capital & Overseas Investment Incentive

Singapore company which at least 50% owned by Singapore citizens or permanent residents invests in approved overseas projects

Losses incurred from the sale of shares can be set off against the investor's other taxable income

Venture Capital Fund Incentive

To carry out the approved venture capital fund in Singapore

Exemption of corporate tax on net gains from disposal of approved investments and other income from approved overseas investments for up to 10 years

Operational Headquarters (OHQ)

To provide the approved headquarters services to related companies

Income arising from the provision in Singapore of approved services will be taxed at 10% for up to 10 years

Double Deduction for R&D Expenses

To carry out the approved R&D activities in Singapore.

Double deduction of qualifying R&D expenses against income

Technopreneur Investment Incentive (TII) Scheme

Eligible start-up company in developing and exploiting new technology

Deduction from taxable income for losses incurred