The regulations regarding tax incentives in Singapore are primarily reflected in the Income Tax Act and specific regulations aimed at encouraging economic development, which include:
1. Tax incentives for emerging industries and emerging service sectors. Emerging industries and emerging service sectors refer to industries that have not yet been operated in Singapore, are suitable for Singapore's economic needs, and contribute to economic development. The Singapore government provides these industries with tax incentives for 5 to 10 years. Companies with significant investments, advanced technology, and skilled employees can enjoy longer tax exemption periods.
2. Tax incentives for expanding enterprises. Expanding enterprises include companies that expand product production, service companies that expand their business, export trading companies, and other industries. Singapore's tax laws provide partial tax exemptions for these industries. For capital expenditures exceeding 10 million Singapore dollars approved for increasing production, companies can apply in writing to be recognized as expanding enterprises and enjoy special tax exemption treatment, with a general tax exemption period of 5 years.
3. Tax incentives for the financial industry. Financial institutions conducting syndicate offshore loans within Singapore are exempt from tax on income derived from Asian currency units; insurance companies' income from offshore risk insurance and reinsurance business (excluding life insurance) is taxed at a rate of 10%; interest paid to non-residents on loans approved for production equipment is exempt from tax; and tax exemptions or reductions are granted for approved royalty income, technical service income, and contributions to research and development funds.
4. Other provisions. Expenses incurred in establishing, maintaining, or participating in recognized trade fairs, exhibitions, or trade delegations, as well as research expenses incurred in recognized research and development, can be subject to double deductions.
