Start-Up 10-Year Income Tax Holiday

The Start-Up 10-Year Income Tax Holiday is one of the headline measures from Budget 2026-27. The idea is simple and generous: an eligible start-up pays no income tax for 10 years from the day operations begin. For a new venture, that is a long runway to reinvest profits instead of handing them to the taxman.

It comes under a dedicated Start-Up Act, and is paired with an EDB accelerator scheme that gives new founders support alongside the tax break.

Because it is announced rather than fully in force, the precise definition of an eligible start-up is still pending the gazetted Act. As of end June 2026 no Start-Up Bill has been tabled in the National Assembly and the holiday is absent from the Budget's Income Tax Act amendment list, so it is waiting on the Start-Up Act or the Finance Bill (usually gazetted around August). Treat the 10-year holiday as provisional until the law is published and the criteria are clear.

To prepare, watch for the Start-Up Act and the EDB accelerator guidelines, and plan to register via the EDB once they are out. Getting your structure right early can help you qualify cleanly.