Make crowdfunding tax-friendly for startups

FOR startups, capital injection is critical to kick-start a business proposal or fuel expansion, yet funding barriers are often cited as one of their challenges.

While traditional financing options such as micro loans, government-backed grants and debt financing schemes exist, more startups are seeking alternative sources of financing.

One such source is crowdfunding - the practice of raising funds to finance a specific project or business proposal, usually through the Internet from a large number of individuals. In return for their contributions, these individuals could receive a reward or asset.