Foreign investments represent an important source of income to the economy of Singapore, which is why the government have enabled many incentives over time through which it attracted enterprisers from all over the world. Most of these incentives were and are still granted under the form of tax breaks or deductions.
One of the best examples of the assistance programs granted by the Singapore government is the Angel Investors Tax Deduction Scheme (AITD) which was enabled in 2010. The program was improved over the last few years and nowadays it is one of the most important incentives for foreign investors in Singapore.
Below, our Singapore company formation agents explain the qualification requirements and the benefits of the Angel Investors Tax Deduction Scheme.
We also invite you to watch our video on the Tax Deduction Scheme for Angel Investors:
The main requirement for qualifying under the AITD program is for the investors to be an individual, as no companies or any other legal forms are allowed to enter the scheme. There are no Singapore citizenship or residency requirements.
Then, the following criteria must be met:
The qualifying company must also comply with certain requirements, among which:
Our company formation consultants in Singapore can explain the other requirements for qualifying for the Angel Investors Tax Deduction Scheme as a company.
The Tax Deduction Scheme for Angel Investors offers the following benefits to investors:
It should be noted that the Singapore startup company must invest in certain activities approved by the government.
For more information on the Angel Investors Tax Deduction Scheme, please feel free to contact our company formation advisors in Singapore. We can also help you open a Singapore company.