Tax Exemption Scheme for New Start-Up Companies (SUTE)
· Last verified 23 Oct 2026New Singapore-incorporated companies get 75% tax exemption on the first S$100,000 and 50% on the next S$100,000 of normal chargeable income for each of their first 3 consecutive YAs.
- Support
- Max exemption S$125,000 of chargeable income per YA, for the first 3 consecutive YAs (YA 2020 onwards).
- Maximum funding
- No fixed cap published
- How to apply
- No separate application needed
- Apply before starting?
- Check official page
Recent changes
No change in Budget 2025/2026. After the first 3 YAs, companies move to the Partial Tax Exemption (75% on first S$10,000 and 50% on next S$190,000; max S$102,500).
Who is eligible
- Registered and operating in Singapore
- Company age: First 3 consecutive YAs from incorporation
- Incorporated in Singapore and tax resident for the YA
- No more than 20 shareholders, all individuals, or at least one individual holding >= 10% of ordinary shares
- Not an investment holding company or property developer
- Loss years still count toward the 3 YAs
Quick eligibility check
- 1. Is your company incorporated in Singapore?
- 2. Is it controlled and managed in Singapore (tax resident)?
- 3. Is this within the first 3 YAs since incorporation?
- 4. Do you have 20 or fewer shareholders, with all individuals or at least one individual holding 10% or more?
- 5. Is your main activity something other than investment holding or property development?
0 of 5 answered.
What it covers
- Not cost-based
How to apply
- File ECI and Form C-S/C each year
- Exemption is computed automatically if conditions are met
Documents you need
- Form C-S / C-S Lite / C
- Shareholder register (to prove shareholder conditions if queried)
Frequently asked questions
What is the Tax Exemption Scheme for New Start-Up Companies?
New Singapore-incorporated companies get 75% tax exemption on the first S$100,000 and 50% on the next S$100,000 of normal chargeable income for each of their first 3 consecutive YAs.
How much funding does SUTE give?
Max exemption S$125,000 of chargeable income per YA, for the first 3 consecutive YAs (YA 2020 onwards).
Who is eligible for SUTE?
Applicants must be registered and operating in Singapore. Incorporated in Singapore and tax resident for the YA No more than 20 shareholders, all individuals, or at least one individual holding >= 10% of ordinary shares Not an investment holding company or property developer Loss years still count toward the 3 YAs
Do I need to apply for SUTE?
No separate application is needed. Automatic via Form C-S/C filing
What documents do I need for SUTE?
Form C-S / C-S Lite / C; Shareholder register (to prove shareholder conditions if queried).
Sources
Information last verified on 23 Oct 2026. Grant rules change often. Always confirm with IRAS before you apply.
