This post is also available in: 
简体中文 (Chinese (Simplified))
Singapore Corporate Income Tax Rate
Singapore is blessed with its booming economy as well as its strategic position as the top-notch financial hub. When talked about the vibrant business environment in Singapore, its Singapore corporate tax rates often make the list. The effective Singapore company tax rates including various tax incentives as well as reduced corporate income tax rates in Singapore has contributed to the reason that attracts foreign investments into the country. This guide provides comprehensive information about company tax Singapore.
Singapore Corporate Income Tax Rate at a Glance
In Singapore, its corporate income tax has a single-tier territorial based flat-rate corporate income tax system. There is no double-taxation for stakeholders under the single-tier corporate income tax system – no further Singapore taxation imposed on dividends paid by a company to its shareholders. In addition, there is no tax on capital gains in Singapore (gains on sale of fixed assets, gains on foreign exchange on capital transactions and so on are some of the examples of capital gains). Now, let us dive in to know more about the attractive tax rates.
Corporate Income Tax Rates and General Tax Exemptions
Corporate Tax Rates:
With effect from Year of Assessment 2010, a company in Singapore is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.
| Year of Assessment (YA) | Tax Rate |
| From 2010 | 17% |
| 2008 to 2009 | 18% |
| 2005 to 2007 | 20% |
General Tax Incentives
Although the corporate tax rate is flat at 17%, there are tax exemption schemes available for companies which help to lower the overall effective corporate tax rate.
Tax Exemption Scheme for New Start-up Companies
Any newly incorporated company that meets the conditions (as stated below) will have the privilege to enjoy the tax exemption for new start-up companies for each of the first three years of tax assessment. The qualifying conditions are as follow:
- be incorporated in Singapore
- be tax resident in Singapore
- possesses not more than 20 shareholders with at least one of the shareholders being an individual shareholder holding at least 10% of ordinary shares.
The tax exemption is open to all new companies except these two types of companies:
- A company whose principal activity is that of investment holding; and
- A company which undertakes property development for sale, for investment, or for both investment and sale.
BEFORE YA 2020
| Chargeable income | Effective Tax Rate |
| First $100,000 | 0% |
| Next $200,000 | 8.5% |
| Thereafter | 17% |
YA 2020 ONWARDS
| Chargeable income | Effective Tax Rate |
| First $100,000 | 4.25 % |
| Next $100,000 | 8.5% |
| Thereafter | 17% |
Partial Tax Exemption for Companies
Companies in their 4th tax assessment year onwards and all other companies will have the privilege to enjoy partial tax exemption indefinitely.
BEFORE YA 2020
| Chargeable income | Effective Tax Rate |
| First $10,000 | 4.25% |
| Next $290,000 | 8.5% |
| Thereafter | 17% |
YA 2020 ONWARDS
| Chargeable income | Effective Tax Rate |
| First $10,000 | 4.25% |
| Next $190,000 | 8.5% |
| Thereafter | 17% |
One-off Corporate Income Tax (CIT) Rebate
Every Singapore company will be eligible for CIT rebates according to the Singapore Budget announcements.
Below are the applicable CIT rebates for the various tax assessment years:
| Year of Assessment (YA) | Corporate Income Tax Rebate | Capped at |
| 2019 | 20% | $10,000 |
| 2018 | 40% | $15,000 |
| 2017 | 50% | $25,000 |
| 2016 | 50% | $20,000 |
| 2013 to 2015 | 30% | $30,000 |
If you have any questions about corporate income tax services or if you are unsure of how the corporate income tax is computed, feel free to contact us and let our professional team help you!
