Corporate Tax in Singapore

REGISTER
Download E-BOOK

Companies incorporated in Singapore can enjoy Tax Exemption Scheme for New Start-Up Companies for the first three Year of Assessment (YA). From the fourth YA onwards, the company can enjoy the Partial Tax Exemption (PTE).

  • Checklist to file your tax
New Start-Up exemptions (first 3 years)
Net tax payable
Effective tax rate
Partial Tax exemption
Net tax payable
Effective tax rate
  • Checklist to file your tax
Corporate Tax Services in Singapore2021-08-17T06:44:02+08:00

Understanding the Corporate Tax System in Singapore

Singapore has been nominated as one of the tax havens around the world. With its low corporate tax rates and strong financial incentives support from the government (IRAS), it is no wonder business opportunists seek to start their company in the country.

Below here are some relevant resources about company taxes in Singapore.

Singapore Corporate Tax Rates

A company is taxed a flat rate on chargeable income, regardless of whether it is a local or foreign company. The Corporate Tax Rate is 17%.

Company Tax Exemption Scheme for New Start-Up Companies

A newly incorporated company which satisfies the qualifying conditions can claim a 75% tax exemption on the first S$100,000 and a 50% tax exemption on the next S$100,000 of normal chargeable income for each of its first 3 consecutive years of assessment (YAs).

Company Tax Exemption Qualifying Conditions

To qualify for a tax exemption, new start-up companies must:

  • Be incorporated in Singapore (other than companies limited by guarantee**)
  • Be a tax resident in Singapore for the YA
  • Have no more than 20 shareholders throughout the basis period of the YA:
  • Have its shareholders beneficially and directly holding the issuing shares in their own names, OR
  • Have at least one shareholder beneficially and directly holding at least 10% of the issued ordinary shares of the company

*A company is a resident in Singapore if the control and management of its business is exercised in Singapore.

** From YA 2010, companies limited by guarantee are subjected to the same conditions imposed on companies limited by shares.

Common Tax Reliefs

Company Tax Exemption Scheme for New Start-Up Companies in Singapore

FAQs

What are the Filing Deadlines?2021-05-18T09:14:36+08:00

Financial Year End (FYE)

  • You can choose any date, like March 31st basic deadline for filing your reports

Estimated Chargeable Income (ECI)

  • 3 months after FYE
  • Your file taxable income minus all tax-allowable expenses

C-S/C, the Annual Tax Returns

  • November 30th year after the FYE
  • you report your taxes following these standard
What are the Required Documents when filling Form C-S/ C?2021-05-17T11:17:08+08:00

Audited and unaudited financial statements, tax computations, claim forms, and other documents must be prepared or filed with an income tax return (Form C-S/ C).

Records and Accounts Keeping

Companies are required to keep proper records and accounts of business transactions. Using accounting software helps businesses improve record keeping and comply with tax obligations.

Businesses can also use the information found in the software to ensure that operations are effective and efficient.

The IRAS’ Accounting Software Register lists the accounting software that are able to meet IRAS’ technical requirements, and businesses considering using accounting software for record-keeping purposes are encouraged to consider software on this list.

For companies eligible to file Form C-S

Companies that meet the qualifying conditions may report their income by filing Form C-S instead of Form C.  Such companies must prepare:

  • audited and unaudited financial statements;
  • tax computation and supporting schedules; and
  • other documents such as claim forms for claiming certain tax deductions or benefits.

These documents are to be prepared and retained for submission upon IRAS’ request, except for Declaration for the Purpose of Claiming Writing-Down Allowances for Intellectual Property Rights (IPRs) under Section 19B of the Income Tax Act.

How is Income Assessed in Singapore?2021-05-17T11:16:22+08:00

Income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending in the year preceding the YA.

Claiming Double Tax Relief – What is double tax relief (DTR)?2021-05-17T11:15:09+08:00

Foreign income earned by a Singapore company may be subjected to taxation twice. Once in the foreign country, and a second time when the foreign income is remitted into Singapore.

A double tax relief (DTR) is the credit relief provided for under an Avoidance of Double Taxation Agreement (DTA) to reduce this double taxation. A DTR is granted by allowing the Singapore tax resident company to claim a credit for tax paid in the foreign country against the Singapore tax that is payable on the same income.

A company is a tax resident of Singapore if the control and management of its business are exercised in Singapore.

What is the Procedure of Taxing a Company (both local and foreign) in Singapore?2021-05-17T11:14:09+08:00

A company will be taxed (regardless of a local or a foreign company) on its;

  • income accruing in or derived from Singapore; or
  • income received in Singapore from outside Singapore
Will Singapore Double Tax me if I already pay Tax in another Country?2021-05-17T11:13:31+08:00

It depends. If you are conducting international business and have paid taxes in a foreign country that has signed Avoidance of Double Taxation Agreement (DTA) with Singapore, Singapore will not double tax your income.

What are the other Singapore Taxes induced?2021-05-18T09:16:50+08:00

Apart from the mandatory taxes (Personal income and Corporate), there are other liable taxes levied under certain situations which is mentioned in the following,

  • Withholding Tax – Under Singapore’s law, payers who make certain payment(s) to non-resident individuals or companies are required to withhold a percentage of that payment and pay the amount withheld to IRAS.
  • Stamp Duties – For documents which is connected to purchase or lease of a property or sale of shares.
  • Customs and Excise Taxes – Imposed on dutiable goods manufactured in or imported into the country. In Singapore, they are alcoholic beverages, tobacco products, petroleum products, and motor vehicles.
  • Property Tax – Those who own immovable property in Singapore.
  • Environmental Taxes (e.g., Water) – Imposed by Singapore government to promote conservation of water across the country.
  • Tax on Insurance Premiums – Only a certain employee’s insurance policies’ premiums paid for by their employer are taxable.
  • Casino Tax – Implemented in 2010. The tax is levied on a casino’s gross gaming revenue (GGR).
  • Road Tax – Imposed on owners who own motor vehicle.

Find out more in details here.

Why is Singapore Tax so low?2021-05-17T11:11:07+08:00

Singapore tax is relatively low with comparison to other countries because competitiveness is a decisive consideration undergirding its tax policy.

What is the Corporate Tax Rate in Singapore?2021-05-17T09:20:03+08:00

A flat rate of 17% is taxable in Singapore.

Need tips on Corporate Tax in Singapore?

Ultimate guide: Singapore Corporate Tax System
What's the income tax rate in Singapore?
How can Foreigners Benefit from Singapore Income Tax Act?
Why choose Singapore as tax haven

Flexible pricing

For Existing Clients

Corporate Tax (SGD / Per Annum)

Option
Talk to our sales team

Hear what our clients have to say

4.6/5
out of 29 reviews on Google

Google Star with PHP

Paul Hype Page & Co. helped us set up our Singapore branch company and bank account seamlessly. Paul Hype Page also obtained employment pass permits for our expat staff smoothly. We also use the payroll services, tax and corporate administrative services that Paul Hype Page provides us on an ongoing basis thereby enabling us to focus on our business.

Michael Harling

ESP Global Services Limited (Singapore Branch)

Smooth Incorporation in Singapore allows me to start my business at ease. Thank you PHP!

Rising Engineering And Construction Pte Ltd

Paul Hype Page & Co. Incorporation process and Corporate specialist staff are a perfect mix of knowledge and tools to start our business in Singapore. Paul Hype Page has a well planned step-by-step process that guides us through all of the government, legal and administration prerequisites as well as our employment pass application. This whole experience had been incredibly hassle free and easy to navigate with a reasonable fee structure.

Kawiorski Tomasz

Tripbuilder Pte Ltd

Benefits of Working with Us

0+
Happy Clients
0%
Client’s Satisfaction
0+
Completed Work
0
Years of Experience

Corporate tax compliance in Singapore has become more complex under the regulatory scrutiny of the IRAS.

Paul Hype Page & Co ensures both your company and your compliance meet the standards required for corporate tax submissions, tax filing, various tax matters including tax deductions and exemptions.

Our team of specialists are well-versed with the latest trends of tax laws and practices. We offer you support to deliver more than just an ordinary tax return.

PHP Network Partner

Our Singapore Tax Compliance Services include:

  • Update you with Singapore tax regulations and compliance requirements

  • Monitor the statutory deadlines and meet the compliance filing deadlines

  • Preparation and filing an estimated chargeable income

  • Preparation/reviewing tax provision calculations based on the information provided

  • Preparation/reviewing the tax computation and Form C based on the information provided

  • Submitting the finalized tax computation and Form C

  • Advising on the tax payments due dates upon receipt of the notice of Assessment

Get an expert to answer within minutes

Our specialists are working around the clock all days – providing you a response whenever you need.

WhatsApp US TODAY

Latest Forum Discussion

Media - Infographic

Steps for company incorporation in Singapore
Employment Pass Procedures in Singapore

Media - Videos

Steps for company incorporation in Singapore
Employment Pass Procedures in Singapore
Go to Top