A lot has changed in the past year, but the upcoming changes to the government’s health insurance scheme, MediShield Life, might have gotten lost in the noise. While the system has undergone little tweaks every now and then, in early 2021 there will be a major review of the MediShield Life scheme which also means significant premium hikes! Since.
6 minute read
Singapore corporate income tax is a flat 17% of a company’s chargeable income. This is already one of the lowest and most competitive corporate income tax rates in the world. Nevertheless, there are still ways to further reduce your corporate income tax.
Tax Exemption Scheme For New Start-Up Companies
Introduced in YA 2005 to support entrepreneurship and help new local companies grow, the tax exemption scheme provides tax savings for new companies in your first 3 consecutive Year of assessments (YA).
From YA 2020 onwards, new start-ups are given 75% exemption on the first $100,000 of their chargeable income, and a further 50% exemption on their next $100,000 of chargeable income. Here’s how your new start-up may save on corporate income tax:
$34,531
So as you can see, one seemingly “simple” medical procedure like this can set you back a few months’ salary. Ouch.
But I already have Medisave. I can use Medisave to pay, right?
Every working Singaporean would have some money in their Medisave accounts. Channelled from your CPF savings, Medisave is basically a bucket of funds which are meant for healthcare costs.
The short answer is: yes, you can use Medisave to defray some of the costs of your treatment (or your immediate family’s). But there are withdrawal limits that apply to specific medical bill components:
Surgery: Depends on how complex the procedure is. Ranges from $250 (simplest) to $7,550 (most complex).