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
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:
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.
There are several factors that come into play that determine how your taxes are calculated. Some of those are:
Alternatively, you can also mail these documents to:
The Comptroller of Income Tax,
IRAS Revenue House
55 Newton Road