Acquire more new technologies, MTI tells companies.
Firms in the city-state will now be racing to develop pioneering activities in Singapore, as sweeter tax incentives await.
According to a the Ministry of Trade and Industry, the pioneer incentive is designed to attract and anchor new economic activities with significant economic benefits to Singapore, driving the growth of high value-added or high-technology industries in the country.
“A company can be awarded multiple Pioneer Certificates (PCs) when it anchors different qualifying economic activities in Singapore over time,” the MTI said.
While the Economic Expansion Incentives (Relief from Income Tax) Act (EEIA) currently only allows for each company to enjoy a maximum tax relief period of 15 years regardless of the number of PCs awarded to the company, the MTI says it will be amended to make clear that that the maximum tax relief period is to be applied on the incentivised pioneer activity instead of the company as a whole.
The MTI also explained that this is to encourage all companies, including existing ones, to continue to anchor more pioneering activities in Singapore.
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