Singapore Taxation

Company Tax Rate

Taxed at a flat rate of 17% on chargeable income

Tax Exemption and Rebates

Tax Exemption for new startups

Qualifying new startups are given full exemption on the first $100,000 normal chargeable income and a further 50% exemption on the next $200,000 of normal chargeable income for the first three consecutive YAs.

Qualifying Conditions for Start-Up Companies:

  1. The Company must be incorporated in Singapore;
  2. The Company must be a tax resident in Singapore for that YA;
  3. The Company must not have more than 20 shareholders throughout the basis period for that YA where:
    • All of the shareholders are individuals "beneficially and directly" holding the shares in their own names; or
    • At least one shareholder is an individual "beneficially and directly" holding at least 10% of the issued ordinary shares of the Company.
  4. The Company’s principal activity should not be that of investment holding, developing properties for sale, investment, or both.
Chargeable Income % Exempted From Tax Amount Exempted From Tax
First $100,000 100% $100,000
Next $200,000 50% $100,000


Partial Tax Exemption for companies apart from new startups

Chargeable Income % Exempted From Tax Amount Exempted From Tax
First $10,000 @75% =$7,500
Next $290,000 @50% =$145,000
Total $300,000 =$152,500


Corporate Income Tax (CIT) Rebates For All Companies

Year of Assessment (YA) Corporate Income Tax Rebate Capped at
2018 20% $10,000
2017 50% $25,000
2016 50% $20,000


Capital Gains and Losses

The gains and losses are non taxable and deductible. Example of such transactions include sale of plant, property or equipment.

Foreign Sourced Income

Generally, income derived by a Company is only taxable in Singapore if it is accrued in or derived from Singapore or is income received in Singapore from outside Singapore

Under Section 13(9) of the Income Tax Act, tax exemption will be granted to remitted foreign income when all of the following three conditions are met :

  • The highest corporate tax rate (headline tax rate) of the foreign jurisdiction from which the income is received is at least 15% at the time the foreign income is received in Singapore;
  • The foreign income had been subjected to tax in the foreign jurisdiction from which they were received (known as the "subject to tax" condition). The rate at which the foreign income was taxed can be different from the headline tax rate; and
  • The Comptroller is satisfied that the tax exemption would be beneficial to the person resident in Singapore.


Goods and Services Tax (GST)

  • It is a tax on the supply of goods and services in Singapore and on the import of goods into Singapore.
  • The current GST tax rate is 7%.
  • Companies must register for GST if their annual taxable revenue is more than S$1 million or expected  to be more than $1 million.
  • Company can also choose to voluntarily register for GST and this is subjected to approval from IRAS.
  • Both GST returns and payment are due one month after the end of the accounting period covered by the GST return. If you are on GIRO plan for GST payment, GIRO deductions are on the 15th day of the month after the payment due date.
Without GIRO Plan With GIRO Plan For GST Payment
GST Accounting Period Filing and Payment Due Date Filing Due Date GIRO Deduction Date
Jan - Mar 30-Apr 30-Apr 15-May
Apr - Jun 31-Jul 31-Jul 15-Aug
Jul - Sept 31-Oct 31-Oct 15-Nov
Oct - Dec 31-Jan 31-Jan 15-Feb


Withholding Tax

  • Under the law, a person (known as the payer) who makes payment(s) of a specified nature (e.g. Royalty, Interest, Technical Service Fee, etc.) to a non-resident Company or individual (known as payee) is required to withhold a percentage of that payment and pay the amount withheld (called 'Withholding Tax') to IRAS.
  • The rate of withholding tax depends on the nature of payment.
  • Please see link for the rates of each payment type:

  • Nevertheless, if a double tax agreement is available for the respective countries, the rates in the agreement will take precedent.


Sole-Proprietors and Partnerships Income Tax

The business income of Sole-proprietors and Partnerships would be taxed at personal income tax. The tax rate is progressive (0% to 22%) on the chargeable income.

Please see the link for the detailed tax rates:

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