Singapore Corporate Tax

Many investors choose Singapore to start their company as the country is a tax haven jurisdiction. The low corporate tax rate of 17% and business-friendly taxation policies make Singapore an attractive destination for businesses.

Singapore companies do not have to pay corporate taxes to tax authorities of more than one country the use of double taxation agreements (DTAs) with over 80 countries where Singapore firms can claim.

Check Your Singapore Corporate Tax Payable using our free tool!

Enter your chargeable income to generate the net tax payable for new startup exemptions and partial tax exemptions.

How to File Your Yearly Corporate Tax Filing?

STEP 1: File Estimated Chargeable Income (ECI)

The first step to be completed when filing corporate tax in Singapore is that of filing an Estimated Chargeable Income (ECI) form. This form estimates the company’s total amount of chargeable income IRAS within three months of the financial year-end of the company.

Only companies which are specifically exempted from filing an ECI form do not have to do so. These companies which are exempt are those which:

Have a total annual revenue of S$5 million or less
Did not have any estimated chargeable income during the relevant year of assessment (YA).

Declaration of Revenue in an ECI Form

The ECI must be stated, and company’s revenue must also be declared in the ECI Form. This declaration is compulsory with effect from January 2017.

Revenue refers to a company’s main source of income and excludes items such as gain on disposal of fixed assets. If the company is an investment holding company, the main source of income is investment income (e.g., interest and dividend income).

Should the audited financial statements be unavailable, one can refer to the company’s management accounts for the purpose of declaring the revenue amount. Should the revenue amount based on audited financial statements be different from that declared in the ECI Form, and there is no change in the ECI, the revenue figure does not have to be revised.

STEP 2: File Tax Computation With Form C/CS

Once this has been done, the company owner is to file the company’s annual income tax return with IRAS. This income tax return specifies the exact amount of a company’s income during a specific tax year. It must be filed by every company in Singapore.

Even companies which are to be struck off or liquidated as well as companies which have made losses instead of profits must file this income tax return. Dormant companies are also to file an income tax return, but when they do so, they are to submit a more simplified version instead of the standard tax return form.

The vast majority of companies based in Singapore must use Form C to file an income tax return. Information which is to be submitted on a copy of Form C includes tax computation, financial statements, and supporting schedules. However, there are also certain companies which are to use Form C-S instead of Form C for this purpose.

Such companies must have fulfilled the following criteria:

Incorporated in Singapore with annual revenue not exceeding S$5 million
Income must have corporate income tax imposed at 17% and therefore no claims on tax reduction
No claims on any foreign tax credits or investment allowances for the purposes of tax reduction

What Business Expenses to Be Included in Tax Computations?

Business expenses are expenses paid to keep a business in operation. However, business expenses may be deductible or non-deductible. When deductible, they reduce a taxpayer’s taxable income and the amount of tax which must be paid.

Deductible Business Expenses

Generally, deductible business expenses are those “wholly and exclusively incurred in the production of income”. In other words, they must satisfy all these conditions:

Expenses are solely incurred in the production of income.
Expenses are not a contingent liability, i.e. they do not depend on an event that may or may not occur in the future. In other words, the legal liability to pay the expenses must have arisen, regardless of the date of actual payment of the money.
Expenses are revenue, and not capital, in nature.
Expenses are not prohibited from deduction under the Income Tax Act.

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Types of Corporate Tax in Singapore & Their Rates

The Singapore corporate tax rate is at 17%. This is a flat rate on chargeable income, regardless of whether it is a local or foreign company.

There are multiple types of corporate taxes in Singapore, find out below which ones are the most applicable to you!

Type of Singapore Corporate Tax Rates	Tax Rate (%)
Headline Tax on Corporate Profits	17%
Effective Tax on New Start-Up Company on $300k Profits	7.34%
Effective Tax on Existing Companies Incorporated more than 3 Years on $300k Profits	8.39%
Tax Rate on One-Off Capital Gains from Company’s Divestment	0%
Tax Rate on Dividends Distributed to Local and Overseas Shareholders	0%
Tax Rate on Foreign-Sourced Income Not Accruing in or Derived From Singapore	0%

Start-up Tax Exemptions in Singapore

If you’ve just recently incorporated your company, you can tap into the Tax Exemption Scheme to enjoy tax-exempted operations for the first 3 Years of Assessment (YA) based on satisfying the eligibility requirements.

Tax Exemption Scheme for New Start-Up Companies

The Tax Exemption Scheme for New Start-Up Companies in Singapore is 75% tax-exemption (first $100,000 of chargeable income) and 50% tax-exemption (next $100,000 of chargeable income).

Partial Tax Exemption (PTE)

You can also continue to enjoy Partial Tax Exemption (PTE) from the fourth year onwards. The rates are at 75% tax-exemption (first $10,000 of chargeable income) and 50% tax-exemption (next $190,000 of chargeable income).

Guide Resources for Singapore Corporate Tax

Eligibility Requirements for the Corporate Tax Exemption Scheme

The company needs to:

Be incorporated in Singapore
Be a tax resident in Singapore for the Year of Assessment (YA)
Have no more than 20 shareholders throughout the basis period of the Year of Assessment (YA)
Have its shareholders beneficially and directly holding the issuing shares in their names OR have at least one shareholder beneficially and directly holding at least 10% of the issued ordinary shares of the company

Reduce Your Singapore Corporate Tax Bill

The tax exemptions for qualifying companies (e.g. new start-up companies) for their first 5 consecutive Years of Assessment are as follows:

Tax Exemption Scheme for New Start-Up Companies (YA 1 – 3)	75% Tax Exemption	For First $100,000 Chargeable Income
Tax Exemption Scheme for New Start-Up Companies (YA 1 – 3)	50% Tax Exemption	For Next $100,000 Chargeable Income
Partial Tax Exemption (PTE) (YA 4 onwards)	75% Tax Exemption	For First $10,000 Chargeable Income
Partial Tax Exemption (PTE) (YA 4 onwards)	50% Tax Exemption	For Next $190,000 Chargeable Income

Other ways to reduce corporate tax

Purchase of fixed assets

Buying a fixed assets like machinery or furniture allows a company to accumulate capital allowances. Capital allowances can be claimed in the form of tax deductions.

They pay for a company’s acquisitions of machinery or equipment which are used to generate income for the company. Any capital allowances which have gone unused during a particular YA may be carried forward to subsequent YAs as long as the company has not made any major changes to its primary business activities or shareholdings.

Offset profits

Many companies which have made losses in prior years can lower tax by utilising those losses to offset profits for the current year, lowering the amount of tax money they will be to pay.

For this purpose, companies need to pass the Shareholding Test. The Shareholding Test states that there must not have been any substantial changes in the shareholding of the company between the end of the YA in which the company incurred the losses and the beginning of the YA which is related to the income from which these losses are to be deducted.

Your Questions, Answered

Here are the top questions that we get asked the most when it comes to Singapore Corporate Tax.

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How does corporate tax work in Singapore?Timothy2023-02-21T11:20:52+08:00

How does corporate tax work in Singapore?

Singapore corporate tax leverages on the territorial tax system and levies taxes on profits instead of revenue. All the profits generated by your Singapore company are taxed at a flat rate of 17%. Once you successfully register your business, you will be responsible to pay your corporate taxes and hiring a business consultant who is experienced with Singapore corporate tax is necessary to understand the taxation system.

How much does it cost for corporate tax filing in Singapore?Timothy2023-02-21T11:21:28+08:00

How much does it cost for corporate tax filing in Singapore?

Our services for filing corporate tax in Singapore are divided into two categories: for existing clients and for new clients. For our existing clients, tax computation and filing is S$600. For new clients, do reach out to us so we can understand more about your tax filing requirements.

What are the filing deadlines I need to take note of?Timothy2023-02-21T11:22:42+08:00

What are the filing deadlines I need to take note of?

The corporate tax filing deadlines are as follows:
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 filed taxable income minus all tax-allowable expenses

C-S/C Annual Tax Returns
November 30th year after the FYE
Report your taxes following the Singapore standards

How is Income Assessed in Singapore?Timothy2022-06-27T12:20:27+08:00

How is Income Assessed in Singapore?

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.

Is there any tax incentive for the maritime industry?Paul Hype Page2021-02-09T11:56:41+08:00

Is there any tax incentive for the maritime industry?

Yes, Maritime Sector Incentive – Approved International Shipping Enterprise (MSI-AIS) Award is available for the qualified industry players in the maritime industry.

What is the purpose of tax incentives?Paul Hype Page2021-02-09T11:56:26+08:00

What is the purpose of tax incentives?

The tax incentive is an initiative launched by a country to attract investment and to encourage economic activity. Normally, with the tax incentive, the government will reduce the company’s tax payments

What is an example of a tax incentive in Singapore?Paul Hype Page2021-02-09T11:55:55+08:00

What is an example of a tax incentive in Singapore?

One of the examples of tax incentives in Singapore is the Productivity and Innovation Credit (PIC) Scheme.

What is the corporate tax rate in Singapore?Paul Hype Page2021-02-09T11:46:16+08:00

What is the corporate tax rate in Singapore?

The corporate tax rate in Singapore is 17%.

I have extra income from winnings (Toto, 4D…), is it taxable too?Timothy2020-12-17T10:52:58+08:00

I have extra income from winnings (Toto, 4D…), is it taxable too?

Yes, all income earned in or derived from Singapore is chargeable to income tax, including winnings.

Is royalty considered taxable income in Singapore?Timothy2020-12-17T10:52:39+08:00

Is royalty considered taxable income in Singapore?

Yes, royalty is considered taxable income in Singapore.

What is the maximum personal income tax rate in Singapore?Timothy2020-12-17T10:52:25+08:00

What is the maximum personal income tax rate in Singapore?

The maximum personal income tax rate in Singapore is 22%.

Do all resident taxpayers pay the same income tax rate in Singapore?Timothy2020-12-17T10:51:42+08:00

Do all resident taxpayers pay the same income tax rate in Singapore?

No, Singapore practices progressive tax for the resident taxpayer. The more you earn, the more tax you will need to pay.

What is Form C?Timothy2020-07-01T10:23:12+08:00

What is Form C?

A company must declare its income by completing the Income Tax Form for companies. This is known as Form C and must be completed each year.

IRAS will send the first Form C to a newly incorporated company in the second year following the year of incorporation.

Thereafter, Form C for subsequent YAs will be sent to your company in March or April every year.

You may need to request for the first Form C to be sent to you earlier, that is, in the year immediately after the year of incorporation (instead of the second year following the year of incorporation) under certain circumstances.

Note that income is assessed on a preceding year basis. This means that the basis period for any YA generally refers to the financial year ending in the year preceding the YA.

Example 1

Your company is incorporated on July 1, 2007, and its financial year end is June 30.

If your company’s first set of accounts covered the period from the date of incorporation (July 1, 2007) to June 30, 2008, your accounts will be for YA 2009. You do not need to request for Form C for YA 2008.

Example 2

Your company is incorporated on July 1, 2007 and its financial year end is December 31.

If your company’s first set of accounts covered the period from the date of incorporation (July 1, 2007) to December 31, 2007, your accounts will be for YA 2008. In this case, you have to request for Form C for YA 2008.

Form C can be requested via the form titled “Request for Form C for Newly Incorporated Companies or Companies Granted Waiver to Submit Form C/Change of Particulars (36KB)”.
If a company’s first set of accounts covered the period from the date of incorporation to December 31 of a particular year, accounts will be for the YA after the December 31 which ends the period. There is no need to request for Form C for the YA before it.

Accounts for a given period are to be submitted with the Form C. Form C will be sent to a company in March or April. When filing Form C for a YA, separate tax computations must be submitted for each of two YAs if accounts cover a period of more than 12 months. Income must also be apportioned for each period, and a letter stating that tax computations for the two YAs are enclosed must be attached.

Why must Singapore have Tax exemptions on International air travel and shipping Income?Timothy2020-07-01T10:22:59+08:00

Why must Singapore have Tax exemptions on International air travel and shipping Income?

The countries to which these tax exemptions apply are heavily involved in shipping and air routes to and from Singapore. Therefore, these exemptions encourage the people of these countries to continue to engage with and conduct business activities in Singapore.

How to claim for tax exemption?Timothy2020-07-01T10:22:37+08:00

How to claim for tax exemption?

You are required to make a declaration in your income tax returns by giving the nature and amount of the foreign-sourced income that was remitted to Singapore. You are also required to complete the Declaration Form for Foreign-Sourced Income Received in Singapore From 22 Jan 2009 to 21 Jan 2010 (60KB) for submission to IRAS. Although you have to state the use of the foreign income in the declaration form, the usage of such foreign income will not affect the claim for tax exemption.

Our Singapore Corporate Tax Resources

Get insights on the Singapore corporate tax landscape so you understand the exemptions that you can have for your business and more.

Why Is Singapore a Tax Haven?

4 Ways to Reduce Corporate Tax in Singapore

Singapore Corporate Income Tax: Tax Structure, Benefits, and Reliefs

Singapore Auto-Inclusion Scheme: How It Works

Our Singapore Corporate Tax Services

Engage us as your trusted corporate tax specialist with these corporate tax services. You’ll get a peace of mind on all taxation regulations and requirements, so the focus can be on your company.

Keep you updated on the Singapore tax regulations and compliance requirements

Monitor the statutory deadlines and meet compliance filing deadlines

Preparation and filing an estimated chargeable income

Preparation and reviewing of tax provision calculations

Preparation and reviewing the tax computation and Form C

Submission of finalised tax computation and Form C

Provide advice on the tax payments due dates upon receipt of Assessments

At least one local resident director

Both Singapore residents and foreigners can serve as directors of a Singapore company, provided there is at least one director who is a Singapore resident.

At least one shareholder

To register a company in Singapore, you need at least one shareholder who can be a person or another company. You can have up to 50 shareholders, and all of them can be foreigners.

New Start-Up exemptions (first 3 years)
Net tax payable
Effective tax rate
Partial Tax exemption
Net tax payable
Effective tax rate

Singapore Corporate Tax Services

Specialising in comprehensive tax compliance services, including monthly filings, annual income tax returns, and transfer pricing requirements. We can help your company optimise tax strategies to minimize liabilities in achieving greater profitability through our tax expertise.

Key Note