Angel Investors Tax Deduction (AITD) Scheme

Angel Investor Schemes

You can participate in the Angel Investors Tax Deduction Scheme or AITD if you are willing to invest in qualifying startups. Not only do you offer investment to the startup, you also offer business expertise and/or introduce them to key entities in your network

Qualifications Required for AITD

If you want to take part in the scheme you should first apply with Enterprise Singapore. Once they approve, you will qualify as an investor. A tax incentive will apply if you invest between 1 March 2010 and 31 March 2020.

To be eligible for tax deduction, you will need to:

  • Invest at least S$100,000 in an eligible startup. You need to invest this amount within a year from the date you first invest in the company.
  • You also need to hold your qualifying investment for at least 2 years.

How Much Tax Deduction Can You Claim?

You may invest as much as you like, but for tax purposes there is a cap on investment up to S$500,000. For this amount, you can claim 50% deduction, which is S$250,000. You will be able to claim this amount after the holding period of 2 years.

How Are Taxes on Gains Calculated?

There are several factors that come into play that determine how your taxes are calculated. Some of those are:

  • The frequency of your transactions.
  • The intervals between your sales and purchases.
  • The method you choose to finance your purchases.
  • If you actively trade with the intention of making profit.

How to Claim a Deduction Under AITD Scheme:

  • You need to complete the form, “Claim for Deduction under Angel Investors Tax Deduction Scheme” and sign it.
  • You will have to email the form along with the letter of confirmation from Enterprise Singapore.

Alternatively, you can also mail these documents to:

The Comptroller of Income Tax,
IRAS Revenue House
55 Newton Road
Singapore 307987

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