The tax system rewards people who understand how it works. Singapore already has one of the most business-friendly tax regimes in the region, yet many start-ups and business owners still pay more tax than they need to, simply because nobody told them what they could claim.
Here are 10 legitimate ways to reduce your tax in Singapore, written with founders and growing businesses in mind.
1. Start-ups: Make Your First Three Years Count
If you have just incorporated, this is the single biggest tax advantage you will get, so plan around it.
For their first three Years of Assessment (YAs), qualifying new companies enjoy the Start-up Tax Exemption: 75% of the first $100,000 of chargeable income and 50% of the next $100,000 are tax-exempt. Most locally incorporated start-ups owned by individuals qualify, although investment holding and property development companies do not. After the first three years, the Partial Tax Exemption still applies to every company (75% of the first $10,000 and 50% of the next $190,000).
On top of that, companies receive a 50% Corporate Income Tax Rebate for YA 2026, capped at $40,000. If you employed at least one local employee in 2025, you also receive a minimum cash grant of $2,000 as part of this rebate.
What this looks like in practice: a new company with $100,000 of chargeable income pays tax on only $25,000. At 17%, that is $4,250, and the 50% rebate brings it down to about $2,125, an effective rate of roughly 2%.
Our advice: the early years are when your tax bill is lowest, so it is a good time to invest in the business, keep clean records from day one, and make sure your company is set up to qualify.
2. Do Not Be Afraid to Get Professional Help
Many entrepreneurs try to do everything themselves to save money. But professional fees are generally tax-deductible, including accounting, audit, tax filing, corporate secretarial services and legal fees on day-to-day business matters such as contracts and debt recovery.
That means the real cost of good advice is lower than it looks, and the benefits often outweigh it: avoiding late-filing penalties, claiming reliefs you did not know about, getting your structure right early, and freeing your time to grow the business.
The same goes for other day-to-day running costs such as rent, staff salaries and CPF, software subscriptions and marketing. Keep the invoices, as IRAS may ask for them.
3. Upgrade Yourself: Let the Company Pay for Your Courses
As a founder, the most valuable asset in your business is often you. Learning new skills, whether in digital marketing, finance, AI tools or your own industry, pays off for years, and the tax system supports it.
When the company pays for job-related training and courses for its staff, including working directors, the course and exam fees are tax-deductible for the company. For the employee, company-sponsored training is generally not taxable and does not attract CPF, as long as it forms part of the company’s training and is open to all staff to apply.
This matters even more now: the Course Fees Relief for individuals ended from YA 2026, so paying for a course out of your own pocket no longer gives you any personal tax relief.
Our advice: plan your learning budget through the company, keep the course invoices, and make sure the training is relevant to your work. Avoid bundling a holiday into an overseas course, as the holiday portion is taxable.
4. Travelling to Grow Your Business? Pay Yourself a Per Diem
This is one of the most commonly overlooked items for start-ups. When you or your team travel overseas to meet clients, attend trade fairs or explore new markets, the company can pay a per diem allowance to cover meals, local transport and incidental costs.
- Per diem paid within IRAS’s acceptable rates for the country visited is not taxable to the employee, and that includes working directors.
- For the company, it is a deductible business expense.
- Only the portion above IRAS’s rates is taxable as income.
Our advice: set a simple travel policy, check IRAS’s published daily rate for each country before the trip, and record the travel dates and business purpose.
5. Working from Home? Claim Your Home Office Costs
Many start-ups begin life at the dining table. If you run your business from home as a sole proprietorship or partnership, you can claim the business share of your home expenses, such as electricity, internet and phone bills.
The claim should be worked out on a reasonable basis, for example the space you use for work and the hours you spend working, so keep a simple record of how you arrived at the figure. If your business is run through a company, talk to us about the right way to set this up.
6. Buying a Laptop for Work? Write It Off in Full
Small items you buy for the business, such as a laptop, phone, printer or office furniture, do not have to be depreciated slowly over many years.
- Items costing $5,000 or less each can be written off in full in the year you buy them, up to a total of $30,000 per YA.
- Computers and prescribed automation equipment can be written off 100% in one year regardless of cost.
- Other equipment can generally be written off over three years.
Our advice: if you were planning to upgrade equipment anyway, buying before your financial year-end brings the tax saving forward.
7. Renovating Your Office? You Can Claim It, Including Designer Fees
Fitting out a new office or shop is a big cost for a growing business, and the good news is that much of it is tax-deductible.
- Qualifying renovation and refurbishment costs can be claimed up to $300,000 for every three-year period (the current period is YA 2025 to YA 2027).
- From YA 2025, designer and professional fees, such as interior designer and consultant fees, also qualify.
- You can choose to claim the deduction over three years, or all in one year.
Note that structural works requiring approval from the building authorities do not qualify.
8. Expanding Overseas? Claim Double
Under the Double Tax Deduction for Internationalisation, qualifying market-expansion costs such as overseas business development trips, investment study trips and trade fairs can be deducted at 200%. Up to $150,000 of qualifying expenses per YA can be claimed without prior approval, rising to $400,000 from YA 2027, and the scheme runs until 31 December 2030.
Our advice: pair this with point 4. A well-documented overseas business trip can both reduce your company’s tax and provide tax-free per diem for your team.
9. Giving Back? Your Donation Is Worth 2.5 Times
Donations to Institutions of a Public Character (IPCs) qualify for a 250% tax deduction, now extended to donations made up to 31 December 2029. A $10,000 donation reduces your taxable income by $25,000, so giving to causes you care about also lowers your tax.
10. Plan How You Pay Yourself
As a founder, how you take money out of the company matters.
- Salary or director’s fees are deductible for the company but taxed in your hands at personal rates of up to 24%.
- One-tier dividends come from profits already taxed in the company, and are tax-free to you as a shareholder.
The right mix depends on your company’s profits and your other income, and it is worth reviewing each year. You can also reduce your personal tax by contributing to the Supplementary Retirement Scheme (up to $15,300 a year for Singapore Citizens and PRs, or $35,700 for foreigners) and by making CPF cash top-ups (relief of up to $8,000 for yourself and $8,000 for family members). Total personal reliefs are capped at $80,000 per YA.
Tax Planning, Not Tax Evasion
Everything above is about using the reliefs Singapore’s tax laws already provide. Arrangements set up mainly to avoid tax without genuine business substance can be challenged by IRAS, and under-declaring income or overclaiming expenses can lead to heavy penalties. Good tax planning starts with accurate records and good advice.
How We Can Help You
Whether you have just started your business or are ready to expand, our team can review your tax position, help you claim what you are entitled to, and set up your company and your own pay in the most tax-efficient way. Contact us to arrange a discussion.