According to Mande Enterprise Services, in order to encourage investors to invest in start-up companies, the Singapore government has established an angel investor program. Through investment in this program, investors can obtain preferential personal income tax benefits, the Singapore Inland Revenue Authority website Let’s find out more about the program!

First of all, let’s understand what the Singapore Angel Investor Program is!

The Singapore Angel Investor Program encourages individuals to invest in start-up companies. incentive programs and help companies grow through investors’ expertise and business networks. The program is implemented from March 1, 2010 to March 31, 2020, and is supported by SPRING Singapore's Start-up Enterprise Development Scheme (SEEDS) and Business Angel Scheme (BAS) after February 24, 2015. Investments can also qualify for the Angel Investor Program.

Investor Requirements:

Investment requirements are personal, therefore investments through companies, trusts, institutional funds and other investment vehicles are not eligible.

Follow one of three categories:

Experienced angel investors with a proven track record in early-stage investing;

Experienced with a track record in entrepreneurship Experienced entrepreneurs;

Senior managers with senior management experience;

Demonstrated ability to support investee companies through:

Extensive business experience and strong management capabilities;

Strong management and business capabilities, able to provide companies with consulting on development and entry into new markets;

In-depth understanding of industry development trends;

In-depth technical and scientific understanding;

Strong industry network and business system.

Personal tax incentives for angel investors

You can apply for a reduction in personal income tax under the following circumstances:

As an angel investor, Between March 1, 2010 and March 31, 2020, you invested in a local Singapore start-up company that meets the requirements of the Singapore government;

You invested at least 100,000 within 12 months from the date of your first investment in the company New coins in this startup;

Hold this investment for two consecutive years after the last investment.

The time and amount of tax exemptions and exemptions

The corresponding tax exemptions can be obtained in the tax assessment year in which the last day of the two-year period falls. You can get a tax deduction of 50% of the investment amount, that is, 50% of the investment amount is deducted from your personal income (the maximum deduction is S$250,000). It can only be used for the current tax assessment year and will be invalid after the expiration date.

Taxation on investment income

All income from eligible investments will be subject to personal income tax based on the individual's circumstances. Factors such as quantity, frequency, time lapse between purchases and sales, the source of investment funds, and whether the investor actively participates in transactions in a systematic manner to seek profits will all be considered for tax purposes.

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