What the eight-page examples cover
The PDF contains five examples: a start-up company across YAs 2019–2021, ordinary partial exemption, mixed normal and concessionary income, normal income with concessionary loss, and YA 2022 partial exemption. They illustrate calculation for a company already stated to qualify; they do not establish every company’s eligibility. The YA 2019/2020 rebates and earlier start-up bands are historical.
Example 1: three start-up years
For YA 2019, S$280,000 normal chargeable income receives S$100,000 at 100% plus S$180,000 at 50%, or S$190,000 exemption. The remaining S$90,000 at 17% gives S$15,300 tax; the 20% rebate of S$3,060 leaves S$12,240.
From YA 2020 the illustrated start-up bands change: the first S$100,000 at 75% plus the next S$100,000 at 50% give S$125,000 maximum. YA 2020 income S$250,000 leaves S$125,000 taxable, S$21,250 tax and a 25% S$5,312.50 rebate, giving S$15,937.50. YA 2021 income S$230,000 leaves S$105,000 taxable and S$17,850 tax, with no rebate shown.
Example 2: S$600,000 normal income
YA 2021 partial exemption applies to 75% of the first S$10,000 and 50% of the next S$190,000, giving S$7,500 plus S$95,000, or S$102,500. Income over S$200,000 receives no additional exemption in this example. S$600,000 less S$102,500 leaves S$497,500, taxed at 17% to give S$84,575. The source records the revised partial bands from YA 2020.
Example 3: normal and 10% concessionary income
For YA 2021, S$50,000 normal income is exempt by S$7,500 plus S$20,000 on the remaining S$40,000, total S$27,500. S$22,500 taxable at 17% gives S$3,825. The separate S$60,000 concessionary income receives no partial exemption and is taxed at 10%, giving S$6,000. Total income is S$110,000, taxable after exemption S$82,500, and total tax S$9,825.
Example 4: concessionary loss is not offset one-for-one
Normal revenue S$1.5 million less S$850,000 allowable expenses gives S$650,000 profit. The 10% activity’s S$3 million revenue less S$4 million expenses gives S$1 million loss. Section 37B converts that loss by 10/17: S$588,235 offsets the normal profit, leaving S$61,765 normal chargeable income. The table’s S$411,765 total-column adjustment is the difference between the S$1 million concessionary loss used and S$588,235 normal-rate deduction. It is not an additional deduction or a remaining loss to carry forward.
The source then exempts S$7,500 plus S$25,883 on S$51,765, total S$33,383 using its whole-dollar figures. Taxable income is S$28,382 and 17% tax S$4,824.94. The 10% column has zero taxable income and zero tax. These rounding figures are reproduced from the worked example.
Example 5: YA 2022
Normal income S$290,000 receives S$102,500 partial exemption on the first S$200,000, leaving S$187,500 taxed at 17%: S$31,875. The source shows no further rebate in this example.
Comparing the outcomes
The summary table separates exemption, post-exemption income, pre-rebate tax and the historical rebate. For a different YA or a company with a different qualification or incentive, check the applicable rules instead of transplanting the example’s historical rebate or mixing the start-up and partial-exemption bands.
| Example / YA | Income before exemption (S$) | Exemption (S$) | After exemption (S$) | Tax before rebate (S$) | Rebate shown (S$) | Tax payable (S$) |
|---|---|---|---|---|---|---|
| 1: YA 2019 | 280,000 | 190,000 | 90,000 | 15,300.00 | 3,060.00 | 12,240.00 |
| 1: YA 2020 | 250,000 | 125,000 | 125,000 | 21,250.00 | 5,312.50 | 15,937.50 |
| 1: YA 2021 | 230,000 | 125,000 | 105,000 | 17,850.00 | Not shown | 17,850.00 |
| 2: YA 2021 | 600,000 | 102,500 | 497,500 | 84,575.00 | Not shown | 84,575.00 |
| 3: YA 2021 | 110,000 (50,000 normal + 60,000 at 10%) | 27,500 | 82,500 | 9,825.00 | Not shown | 9,825.00 |
| 4: YA 2021 | 61,765 after adjusted loss set-off | 33,383 | 28,382 | 4,824.94 | Not shown | 4,824.94 |
| 5: YA 2022 | 290,000 | 102,500 | 187,500 | 31,875.00 | Not shown | 31,875.00 |
Official source
This article independently explains the substantive contents of the official PDF, including the relevant conditions, procedures and annexes. The linked document remains the authoritative source for its original wording, and later changes should be checked separately.
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