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Company tax in Singapore is simple at the headline level and detailed underneath. IRAS, the Inland Revenue Authority of Singapore, collects it. There is one flat rate, two exemption schemes and a rebate that changes by year. What you actually pay depends on your chargeable income, which is your taxable profit after allowable deductions. All figures were read on IRAS pages on .
What is the corporate tax rate in Singapore?
A flat 17% of chargeable income, for both local and foreign companies. There are no progressive bands for companies. Concessionary rates, such as 10% for approved incentives, exist for specific income and are granted separately.
How much do the exemptions save?
A new company can use the start-up exemption for its first three Years of Assessment. After that, it uses the partial tax exemption. A company cannot use both in the same year.
| Scheme | Who | Exempt amount | Maximum |
|---|---|---|---|
| New start-up exemption | Qualifying new companies, first 3 Years of Assessment | 75% of the first S$100,000 (S$75,000) and 50% of the next S$100,000 (S$50,000) | S$125,000 |
| Partial tax exemption | All companies not using the start-up scheme | 75% of the first S$10,000 (S$7,500) and 50% of the next S$190,000 (S$95,000) | S$102,500 |
A worked example, before any rebate. With S$200,000 of chargeable income, a company on the partial exemption pays 17% on S$97,500, which is S$16,575. A qualifying start-up pays 17% on S$75,000, which is S$12,750.
The start-up scheme has conditions. The company must be incorporated in Singapore, be tax resident for that year, and have its shares held directly by no more than 20 shareholders, with either all individuals or at least one individual holding at least 10% of the ordinary shares. Investment holding companies and property developers are excluded. IRAS audits abuse, such as shell companies set up to split the income of an existing business.
Is there a rebate this year?
Yes. For the current Year of Assessment, IRAS grants a Corporate Income Tax rebate of 50% of the tax payable, capped at S$40,000, less a S$2,000 CIT Rebate Cash Grant where the company qualifies. The Cash Grant is paid automatically to active companies that made CPF contributions to at least one local employee, other than a shareholder-director. IRAS applies the rebate itself, so do not subtract it from the chargeable income you declare. Rebates change from year to year, so read the IRAS page before you budget.
What do you file, and when?
Two filings matter, plus payment.
- Estimated Chargeable Income (ECI). Due within three months of the financial year end. There is a waiver if annual revenue is S$5 million or below and the ECI is nil. IRAS says you do not need to tell it that you are using the waiver.
- Corporate income tax return. IRAS lists 30 November each year as the filing due date. Which form you use depends on size.
- Payment. Due one month from the date of the Notice of Assessment.
| Form | Who can file it |
|---|---|
| Form C-S (Lite) | Singapore companies with annual revenue of S$200,000 or below that qualify for Form C-S |
| Form C-S | Singapore companies with annual revenue of S$5 million or below, taxed only at 17%, with no group relief or foreign tax credit |
| Form C | Everyone else |
Form C-S and C-S (Lite) do not need financial statements or a tax computation attached, but you should keep them ready in case IRAS asks. Form C needs them submitted. Even a company with no income or a loss must file. Dormant companies file a dormant form unless IRAS has granted a waiver.
What are the penalties?
If you miss the return, IRAS can issue an estimated assessment, which you must pay within one month even if you plan to object. It can also offer a composition amount of up to S$5,000 per offence or send a summons. On conviction a company can face a fine of up to S$5,000 per offence, and a director who ignores a Section 65B(3) notice can face a fine of up to S$10,000, up to 12 months in jail, or both. Late payment of tax attracts a 5% penalty on the unpaid amount.
How does corporate tax fit with other filings?
Tax filing with IRAS is separate from ACRA's annual return, and one does not replace the other. ACRA tells companies to file the annual return, then still file taxes with IRAS. See annual return and AGM. If you sell above S$1 million a year, you may also need GST under GST registration. For small companies, the audit exemption page covers when an audit is not required, and the private limited company page lists the rest of the duties.
Independent guide
SingaporeCompanySetupGuide.com is not IRAS and does not give tax advice. We summarise official pages and show when we last checked them. For an opinion on your own numbers, speak to an accountant or a tax agent. The page after this one explains what accounting firms do and lets you ask for quotes.
Sources
- IRAS, Corporate income tax rates, https://www.iras.gov.sg/quick-links/tax-rates/corporate-income-tax-rates (17%, rebate, exemptions, start-up conditions)
- IRAS, Estimated Chargeable Income (ECI) filing, https://www.iras.gov.sg/taxes/corporate-income-tax/estimated-chargeable-income-(eci)-filing (ECI deadline and waiver)
- IRAS, Overview of Form C-S, Form C-S (Lite) and Form C, https://www.iras.gov.sg/taxes/corporate-income-tax/form-c-s-form-c-s-(lite)-form-c-filing/overview-of-form-c-s-form-c-s-(lite)-form-c (which form)
- IRAS, Late filing or non-filing of corporate income tax returns, https://www.iras.gov.sg/taxes/corporate-income-tax/form-c-s-form-c-s-(lite)-form-c-filing/late-filing-or-non-filing-of-Corporate-Income-Tax-Returns-form-c-s-form-c-s-(Lite)-form-c (30 November, penalties)
- IRAS, Late payment or non-payment of corporate income tax, https://www.iras.gov.sg/taxes/corporate-income-tax/corporate-income-tax-payment/late-payment-or-non-payment-of-corporate-income-tax (payment due date, 5%)
