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Tax rate for companies in Singapore? Corporate tax for companies in Singapore? Singapore company tax rates? With effect from YA 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.
The Corporate Income Tax rate in Singapore is a flat 17% on chargeable income.
This rate is administered by the Inland Revenue Authority of Singapore (IRAS). However, most companies do not pay the full 17% due to various tax exemptions and incentives.
New start-up companies may enjoy the Start-Up Tax Exemption (SUTE), while all qualifying companies can benefit from the Partial Tax Exemption (PTE) scheme, which reduces the effective tax rate—especially for SMEs.
In practice, the effective tax rate is often significantly lower than 17%, depending on the company’s profits and eligibility for exemptions.
1) Tax Exemption Scheme for New Start-Up Companies: |
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| Under the scheme, qualifying new companies are given the following tax exemption for the first three consecutive YAs (Year of Assessment) where the YA falls in | |
| Year of Assessment (YA) | Exemption on normal chargeable income |
| YA 2020 onwards | 75% exemption on the first $100,000 |
| YA 2010 to 2019 | Full exemption on the first $100,000 |
| A further 50% exemption on the next $200,000 | |
2) Partial Tax Exemption for all companies: |
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| All companies including companies limited by guarantee can enjoy the following tax exemption: | |
| Year of Assessment (YA) | Exemption on normal chargeable income |
| YA 2020 onwards | 75% exemption on the first $10,000 |
| A further 50% exemption on the next $190,000 | |
| YA 2010 to 2019 | 75% tax exemption on the first $10,000 |
| A further 50% exemption on the next $290,000 | |