Setting up a Singapore Company and $60,000 Cash Rebate for your investment

Based on my experience with many overseas entrepreneurs, making the decision to come to Singapore, and setting up their business is an easy decision. This is due to the many favourable factors Singapore business environment possess such as lower corporate tax rates, excellent infrastructures, stable government and first class living environment, etc.

Of course, all the above benefits come with a cost, Singapore been voted the ninth most expensive city according to latest Economist Intelligence Unit survey published in 2012.

However, entrepreneurs who are keen in setting up a business in Singapore need not worry as Singapore pro business tax incentives would help you cushion the initial setting up cost. Singapore Tax incentives such as SME Cash Grant where IRAS will rebate 5% of your company's revenue or Productivity Credit scheme where IRAS will rebate you 60% of your company's automated fixed assets such as computers, machinery and etc.

Let me showcase an example on how the tax incentive helps overseas entrepreneurs to set up a Singapore company.

Productivity Credit Scheme

From the illustrated example above, our favourable tax incentive will rebate 60% of the investment cost for setting up a Singapore business. In effective, you will be rebate up to $60,000 for the first $100,000 dollar invested in your Singapore Company. Further, the incorporation fees can be treated as pre-commencement expenses and be allowed for tax deductions.

Incorporating Singapore Company and Singapore Tax system is a relatively easy comprehend.