If you are a Singapore business owner or a prospective angel investor who has come across references to the Angel Investors Tax Deduction (AITD) scheme and wondered whether you can still apply for it, the short answer is no. The AITD scheme lapsed on 31 March 2020, and the Inland Revenue Authority of Singapore (IRAS) has confirmed there is no new intake and no plan to revive it in its original form. Yet the scheme still gets asked about constantly, usually by first-time angel investors who found an old blog post or by founders trying to sweeten a funding round with a tax incentive that no longer exists.

This guide sets the record straight on what the AITD scheme actually did, why it was allowed to lapse, what still applies to investors who qualified before the cut-off date, and what options exist today for angel investors and the startups seeking their capital.

What the AITD Scheme Was Designed to Do

Introduced in 2010, the AITD scheme was meant to encourage individuals with capital and business experience to invest directly in early-stage Singapore startups, rather than leaving that risk-capital gap to institutional venture funds alone. An individual who obtained “approved angel investor” status from Enterprise Singapore and invested at least S$100,000 of qualifying investment in a qualifying startup within a 12-month window could claim a tax deduction against their taxable income.

The deduction was calculated at 50% of the cost of the qualifying investment, capped at S$500,000 of investment costs per Year of Assessment, and was only available once the investor had held the shares for a continuous two-year period from the date of the last qualifying investment. Investors also had to divest through a recognised exit before the incentive was finalised, and the qualifying startup itself had to meet conditions on incorporation date, paid-up capital, and principal business activity.

Why the Scheme Lapsed

The AITD scheme had a built-in sunset clause from inception. As part of Budget 2020, the Singapore Government reviewed the broader landscape of startup funding incentives and allowed the AITD scheme to expire rather than renewing it. No new approvals of angel investor status, and no new qualifying investments, are accepted for any period commencing after 31 March 2020.

The policy rationale, based on public statements at the time, was that Singapore’s startup financing ecosystem had matured considerably since 2010. Venture capital funds, corporate venture arms, and platforms such as Startup SG Equity had scaled up to a point where a narrowly targeted personal tax deduction for angel investors was seen as less necessary than in the scheme’s early years. Enterprise Singapore instead redirected support toward co-investment schemes that put government capital directly alongside private investors at the company level, rather than through the investor’s personal tax return.

What Happens If You Invested Before the Cut-Off

If you obtained approved angel investor status and made a qualifying investment before 31 March 2020, the lapse of the scheme does not retroactively strip your entitlement. Investors who met the original conditions continue to enjoy the deduction for those specific investments, provided:

the two-year continuous holding period from the date of the last qualifying investment is met; the qualifying startup continues to satisfy its own conditions during that period; and the investor has not divested in a manner that falls outside the scheme’s exit rules.

If you are in this position, keep your original approval letter from Enterprise Singapore, your investment agreements, and your IRAS claim form on file. IRAS retains the right to review historical claims, and good corporate housekeeping around this kind of legacy tax position is exactly the sort of thing that should sit alongside your company’s statutory records rather than in a forgotten email thread.

What Replaces AITD in 2026

Startup SG Equity

Rather than rewarding the individual angel investor through the tax system, Enterprise Singapore’s Startup SG Equity programme co-invests government capital directly into qualifying deep-tech and startup companies on commercial terms, alongside a private, accredited co-investor called a Third-Party Investor (TPI). This shifts the incentive to the company’s cap table rather than to the investor’s personal income tax computation.

Startup SG Founder

For first-time founders themselves rather than the investors backing them, the Startup SG Founder grant provides seed capital matched on a 1:1 basis by an Accredited Mentor Partner, plus structured mentorship. It is a complementary, non-dilutive source of early capital that sits alongside, rather than replaces, private angel money.

Ordinary Investment Structuring

Absent a dedicated tax deduction scheme, angel investors today generally rely on standard convertible instruments (convertible notes, SAFEs) and ordinary share subscriptions, with the tax efficiency coming from Singapore’s general absence of capital gains tax rather than a specific deduction. Investors should still take care over how the investment is structured and documented, since a poorly drafted shareholders’ agreement or subscription agreement causes far more disputes down the line than the loss of a tax deduction ever did.

What This Means for Founders Raising Angel Capital

If you are a founder pitching to angel investors in 2026, do not represent that an investment into your company qualifies for “AITD tax relief”: it does not, and doing so could mislead investors and create liability for the company. Instead, focus your pitch on the fundamentals: a clear cap table, a properly constituted share allotment process, and (where eligible) a live grant such as Startup SG Founder or Startup SG Equity that can be layered on top of private angel money.

Good corporate secretarial hygiene also matters more to sophisticated angel investors than most founders expect. An investor doing diligence will look at your Register of Registrable Controllers, your constitution, and your board resolutions before they look at anything else, because a messy register is often the first sign of a messy company.

For the latest Singapore investment news, there are useful resources for founders and angel investors tracking how the funding landscape continues to evolve. Beyond the mechanics of any one scheme, sound investment decisions ultimately depend on the same discipline whether the capital comes with a tax break attached or not.

To speak with the team at Raffles Corporate Services, you can email [email protected] or call, SMS, or WhatsApp +65 8501 7133. We are happy to assist with any queries.

The Editorial Team, Raffles Corporate Services