Singapore Corporate Income Tax Rate

Singapore’s booming economy and excellent financial hub are part of the reasons why the residents of the country enjoy some special privileges. When it comes to privileges in business, the effective Singapore company tax rates can’t be overlooked. The various tax incentives and corporate income tax rates are part of the reasons why foreign investors are trooping into Singapore. As you read on, you will find detailed information about the company tax in Singapore.

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Singapore Corporate Income Tax Rate at a Glance

Singapore uses a single-tier territorial based corporate income tax system to avoid the issue of double taxation. Under the single-tier corporate income system of taxation, tax won’t be imposed on dividends that companies pay to their shareholders. Also, tax is not levied on capital gains in Singapore.

Corporate Income Tax Rates

Effective from Year of Assessment 2010, both local and foreign companies in Singapore are taxed at a 17% flat rate on their chargeable income. The table below shows the previous and present tax rates in Singapore.

Year of Assessment	Tax Rate
2010 till date	17%
2008 to 2009	18%
2005 to 2007	20%

General Tax Incentives

While the corporate tax rate remains at a flat rate of 17%, some exemption schemes can help companies lower the effective corporate tax rate with proper tax planning.

Tax Exemption Scheme for New Start-up Companies

Any company that is newly incorporated and meets the conditions below can enjoy all the tax exemptions available to new start-up companies for the early 3 years of tax assessment. Here are the qualifying conditions:

be tax resident in Singapore
be incorporated in Singapore
has no greater than 20 shareholders, and at least one of them must be an individual shareholder who holds a minimum of 10% of ordinary shares

2 types of companies are not eligible to enjoy tax exemptions. These companies are:

any company whose principal activity involves investment holding; and
any company that undertakes property development for investment, for sale, or both.

The table below shows the chargeable income before the year of assessment 2020.

Chargeable Income	Effective Tax Rate
The initial $100,000	0%
Next $200,000	8.5%
Subsequent income	17%

The table below shows the chargeable income effective from the year of assessment 2020.

Chargeable Income	Effective Tax Rate
The initial $100,000	4.25 %
Next $100,000	8.5%
Subsequent income	17%

Partial Tax Exemption for Companies

All companies that have reached their 4th year of tax assessment can enjoy partial tax exemption indefinitely.

The table below shows the chargeable income before the year of assessment 2020.

Chargeable Income	Effective Tax Rate
The initial $10,000	4.25%
Next $290,000	8.5%
Subsequent income	17%

The table below shows the chargeable income effective from the year of assessment 2020.

Chargeable Income	Effective Tax Rate
The initial $10,000	4.25%
Next $190,000	8.5%
Subsequent income	17%

One-off Corporate Income Tax (CIT) Rebate

All companies in Singapore will qualify for CIT rebates in line with the Singapore Budget announcements.

Here are the applicable CIT rebates for different years of tax assessment.

Year of Assessment	Corporate Income Tax Rebate	Capped at
2020	25%	$15,000
2019	20%	$10,000
2018	40%	$15,000
2017	50%	$25,000
2016	50%	$20,000
2013 to 2015	30%	$30,000