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IRAS, the Inland Revenue Authority of Singapore, taxes companies at a flat 17% of chargeable income. This applies to local and foreign companies alike. Checked . The incentives below reduce what is taxed, not the rate. The detailed filing steps are on corporate tax, so this page maps the rates and reliefs.
What are the rates and reliefs at a glance?
| Item | What it does | Key figure |
|---|---|---|
| Corporate income tax | Flat rate on chargeable income | 17% |
| Start-up exemption | First 3 years of assessment | 75% off the first S$100,000, 50% off the next S$100,000, up to S$125,000 |
| Partial tax exemption | Later years, or if not on the start-up scheme | 75% off the first S$10,000, 50% off the next S$190,000, up to S$102,500 |
| Corporate income tax rebate | Current year of assessment, automatic | 50% of tax payable, with a S$2,000 cash grant for some companies, up to S$40,000 in total |
| Foreign income relief | For tax residents | Exemption of specified income, treaty relief, foreign tax credit |
| Withholding tax | Payer deducts on some payments to non-residents | 10% to 24% by type; no tax on dividends |
The exemptions apply to normal chargeable income, which is the income taxed at 17%.
How does the start-up exemption work?
It applies for a company's first three consecutive years of assessment. The company must be incorporated and tax resident in Singapore and have no more than 20 shareholders, with individuals holding the shares or at least one individual holding 10% of the ordinary shares. Investment holding and property development companies are excluded. You claim it in the ECI and the Form C-S or Form C. The full explanation and a worked example are on partial tax exemption for start-ups.
What is the rebate this year?
For the current year of assessment IRAS grants a rebate of 50% of tax payable. Active companies that paid CPF for at least one local employee in the prior year also get a S$2,000 cash grant, and the combined maximum is S$40,000. The rebate does not apply to income under a final withholding tax. IRAS works it out for you from the ECI or return. IRAS changes this each Budget, so read the IRAS page for the year you are in.
How is foreign income treated?
Foreign income is generally taxable in Singapore when it is received here. If it arises from a business carried on in Singapore, it is taxable when it accrues. Tax residents can ask for relief in three ways: exemption or reduction of tax on specified foreign income from a country with a double tax agreement, exemption of specified foreign dividends, branch profits and service income, and a foreign tax credit. The exemption for specified foreign income requires that the income was taxed abroad, that the foreign headline rate is at least 15% and that the Comptroller finds the exemption beneficial. See tax residency and double tax agreements.
What about payments to people abroad?
When a Singapore company pays interest, royalties, management fees and some other items to a non-resident, it may have to deduct tax and pay it to IRAS. Dividends carry no withholding tax. The rates and the S45 filing are on withholding tax.
Which incentives are not here?
IRAS and EnterpriseSG run sector and grant schemes, such as grants for productivity or going abroad, which have their own conditions and change often. We list government support on Startup SG grants. We did not verify other sector incentives for this page, so we leave them out rather than guess. Ask IRAS or an adviser about your sector.
Does GST belong here?
GST is a separate tax with its own registration rules. See GST registration.
Independent guide
SingaporeCompanySetupGuide.com is an independent guide, not IRAS. For filing help, the form on this page passes your request to suitable accountants and tax agents, and a provider may pay us for that introduction.
Sources
- Corporate income tax rate, rebates and exemption schemes from IRAS, used for 17%, both exemptions and the rebate.
- Companies receiving foreign income from IRAS, used for foreign income relief and the exemption conditions.
- Taxable and non-taxable income from IRAS, used for capital gains.
- Payments not subject to withholding tax from IRAS, used for dividends.
- Types of payment and withholding tax rates from IRAS, used for the withholding range.