Maximizing Business Growth with Singapore's Start-up Tax Exemption (SUTE)
By reducing tax liabilities and providing cost savings, the SUTE scheme helps support and encourage entrepreneurship, innovation, and growth for startup companies.
It can be exhilarating to launch a business in Singapore. The Singaporean government understands the value of assisting new businesses and has put in place programs to promote entrepreneurship. The SG Start-up Tax Exemption (SUTE) is one such incentive.
What is the SUTE?
It attempts to assist new start-ups by lowering their tax obligations during the first few years of operations. Start-ups can receive up to 75% tax exemption on their regular profit.
Benefits of the SG 3-Year Start-up Tax Exemption
The SUTE offers several benefits, including:
1. Cost Savings - Over the course of three years, startups can save up money to be allotted for taxes, which can then be invested back into the company.
2. Improved Cash Flow - In the beginning of their operations, start-ups might benefit from better cash flow management thanks to decreased tax obligations.
3. Competitive Advantage - By enabling start-ups to offer more aggressive pricing or make product development investments, the tax exemption can give them a competitive advantage.
4. Encourages Innovation and Entrepreneurship - By supporting new start-ups, the tax exemption program promotes innovation and encourages those who wish to pursue entrepreneurship.
The SUTE is a valuable incentive for eligible start-ups in Singapore. By reducing tax liabilities and providing cost savings, the scheme helps to support and encourage entrepreneurship, innovation, and growth in the Singapore business landscape. If you are starting a business in Singapore, it is worth exploring the eligibility criteria and application process for this tax exemption to see how it can benefit your start-up.
How to Apply for the SG 3-Year Start-up Tax Exemption?
Talk to PACFIN’s advisors for expert assistance now!
Could the Silicon Valley Bank incident have a significant impact on banks in Singapore?
The demise of Silicon Valley Bank was a unique episode, and it is unlikely that Singaporean banks will experience a similar demise.
According to recent reports, Silicon Valley Bank, a prominent US bank that has historically been a strong supporter of tech startups, collapsed on March 10, 2023. However, the bank's depositors have been reassured by the US Federal Reserve that they will be able to recover all of their funds. This news has left many small and medium-sized business owners and tech startups wondering if their funds are safe in their Singaporean bank.
Fortunately, the likelihood of a similar collapse occurring in Singapore is low! The Monetary Authority of Singapore (MAS), which serves as the nation's central bank, is in charge of Singapore's solid and well-regulated financial sector. The MAS has put in place stringent rules and capital requirements in an effort to protect the resilience and stability of Singapore's banking sector.
What you Need to Know about Singaporean Banks
1. Insured banking - The Singapore Deposit Insurance Corporation (SDIC), which oversees the Deposit Insurance Scheme (DIS), offers coverage of up to SGD 75,000 per depositor per Scheme member in Singapore. All Singapore dollar and foreign currency deposits, including savings, current, fixed deposit, and other deposit accounts, are covered by this policy.
It's crucial to understand that the DIS is not a separate insurance plan that you must buy. Instead, it is a legal plan that automatically protects all SDIC Scheme members' depositors. As long as their deposits are kept in a bank that is a member of the DIS, non-Singaporeans are likewise covered.
2. Stable banking options - The three biggest banks in Singapore are UOB, OCBC, and DBS, routinely rank among the best banks in the world for strength and stability. DBS was named the world's strongest bank for the third year in a row in a recent assessment by The Banker, while UOB and OCBC were ranked sixth and seventh, respectively.
3. Stable policies and economy - Singapore's business-friendly policies, stable economy, and government's quick actions to safeguard the financial system contribute to its reputation as a secure and attractive business environment.
In the past, the Singaporean government has acted quickly to safeguard the stability of the financial system. The government has the power to fund the banking system in the case of a bank failure and to guarantee deposits through the SDIC. This is consistent with the government's dedication to preserving Singapore's standing as a secure and alluring business environment.
In conclusion
Singaporean banks have continuously ranked among the strongest and most stable in the world. In fact, four Singaporean banks were listed as among the top 10 strongest banks worldwide in a recent analysis by The Banker.
The demise of Silicon Valley Bank was a unique episode, and it is unlikely that Singaporean banks will experience a similar demise. Singapore's strong banking infrastructure and tight rules provide depositors peace of mind that their money is secure.
Why is PACFIN the Best for Filipino Entrepreneurs!
Here are the five reasons why PACFIN Advisors team the best for Filipino entrepreneurs!
Founded and led by fellow Filipino business owners.
PACFIN was founded and is still led by successful Filipino entrepreneurs in various industries - wholesale & retail, export & import, financial and accounting services, BPO, and technology. We’ve been there and done that, yet we continue to aim high and we are happy to share what we learned with you.
Experts in Philippine and Singaporean regulations
We are experts in both the Philippines’ and Singapore’s regulations since we have teams in both countries. Result: We can advise our clients on the most appropriate strategies from day one.
Work with fellow Filipinos
Our client-facing teams are Filipinos in the Philippines, making our service more personal and convenient. We can have face-to-face meetings whenever it is needed, especially during the early stages. Plus, sharing the same language, accent, and culture make collaboration easy.
Licensed and regulated
We are regulated by Singaporean authorities, so you are ensured you are working with a legitimate and professional firm.
Trusted by small and large companies
Our client base is composed of start-ups, established mid-sized companies, and even large corporations.
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Ready to incorporate your business?
Top 3 Reasons Why Entrepreneurs Should Operate a Company from Singapore!
Here are the top 3 reasons why entrepreneurs should operate in Singapore. In three words, IT IS PAINLESS.
1. The incorporation of a company takes one week.
Singapore provides an environment free of red tape. In fact, you can register your company in Singapore in just one to two days! The fast turn-around is due to Singapore's open, digital and business friendly economy.
2. Compliance, banking, and accounting can ALL be done online.
Company registration in Singapore is easy and fully digitized. There is no need to be physically present in Singapore to incorporate your business. Registration can be done from the comfort of your home to save you time and money. Once established, you can still manage your company is completely online.
3. Maximize profits thru is three-year start-up tax exemption program.
The government of Singapore provides several incentives to promote entrepreneurship. The government provides a special tax exemption to startups for the first three assessment years.
Companies will qualify for the New Start-up Tax Exemption (“SUTE”) Scheme if the following conditions are met:
The company was incorporated in Singapore
The company is a tax resident in Singapore
The company has less than 20 shareholders.
Ready to talk about expanding your presence in Singapore? Talk to us. We are ready to help you.
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What To Expect From PACFIN Advisors in 2023
As PACFIN Advisors begin 2023, we are happy to announce a few of our plans and activities for the year!
As PACFIN Advisors begin 2023, we are happy to announce a few of our plans and activities for the year!
1. THE BIG NEWS! PACFIN partnered with the FORZA Football Club by sponsoring FORZA’s youth teams (aged 13 years old and under). It is indeed an exciting partnership since we both have a similar mission… AND And that is to make Filipinos compete on the global stage. Visit our blog, follow our social media pages, or join our newsletter as we track the young footballers’ journey as they learn, compete, and hopefully will culminate at the SingaCup to be held in Singapore in November.
2. NEWS BITES THAT ARE ACTUALLY HELPFUL! We will be publishing stories every week that hopes to educate on the benefits of running a business in Singapore. Short and informative, these stories are tailored to Filipino entrepreneurs.
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