Overview: Reasons to migrate to Singapore
Are there tax incentives available to Angel Investors?
Tax incentives for Angel Investors were available under the Angel Investors Tax Deduction scheme which ran from 1 March 2010 to 31 March 2020.
The Angel Investors Tax Deduction ('AITD') is a tax incentive scheme for individual angel investors investing in start-ups and Singapore companies.
Under the AITD, an approved angel investor who invests at least S$100,000 in a qualifying start-up company and holds such investment for 2 years may enjoy a tax deduction.
The tax deduction which an approved angel investor may obtain is based on 50% of the investment amount at the end of the 2-year hold period, subject to a cap of S$500,000 (i.e., the maximum tax deduction is S$250,000). The tax deduction will be offset against the approved angel investor's total taxable income.
The AITD was available from 1 March 2010 to 31 March 2020, which means investors can no longer obtain new approvals or renewal of 'approved angel investor' status from 1 April 2020. However, angel investors approved on or before 31 March 2020 may continue to enjoy tax deduction for qualifying investments made during their status as an approved angel investor under the AITD.