Investment Incentives in Singapore
Incentives or guarantees
- Forms of Aid
- Founders of a new business in Singapore can request assistance from certain institutions or national organizations. Generally, aids or incentives are negotiated before the company's registration. Investors can contact the
Singapore Trade Development Board (STDB), which mainly aims at promoting foreign investments and exports. Moreover, the
Economic Development Board (EDB) is in charge of increasing foreign setting ups in Singapore by granting different forms of subsidies.
- Privileged Domains
The government gives preference to investments in high value-added manufacturing and services activities as part of its strategy to replace labor-intensive, low value-added activities that have migrated offshore, particularly China.
- Privileged geographical sectors
The free-trade zones (FTZs) in Singapore may be used for storage and repackaging of import and export cargo and goods transiting for subsequent re-export. Manufacturing is not carried out within the zones. Foreign and local firms have equal access to the FTZ facilities.
- Privileged Geographical Zones
- Singapore has five free trade zones, out of which, four are for seaborne cargo and one for airfreight.
- Country Risk
Tax incentives offered to foreign investors
- Special tax treatments
- Various tax incentives are available to apply for under the Income Tax Act and Economic Expansion Incentive Act. Since 2008, a partial tax exemption applies under certain conditions to all companies in respect of the first SGD 300,000 of the chargeable income of a company (the exemption does not apply to Singapore dividends received by companies, companies granted tax incentives whereby the income is taxed at a rate other than the corporate tax rate, and income of a non-resident company subject to a final withholding tax rate). For new companies the first SGD 100,000 and 50% of the next SGD 200,000 of chargeable income (excluding Singapore dividends) is tax exempt for any of its first three consecutive years.
- Useful Links
Economic Development Board (EDB)
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Company Incorporation, Singapore