Companies are subject to "corporate taxes". The current corporate tax rate for all companies is a flat rate of 18%.
This guide is not meant to be a comprehensive guide on income tax. It only covers the tax obligations for companies.
The Basics
Tax Rates & Exemptions
Deductions & Reliefs
Double Taxation Agreements
Filing Your Estimated Chargeable Income
Filing Your Tax Return
Payment Of Taxes
Where Can I Get Help?
The Basics
Taxable Income
- Any income that is "accrued" or received in Singapore by a company is liable to tax.
- The company may be incorporated or registered in Singapore or elsewhere.
Capital Gains
- Capital gains are not subject to tax. For instance, if a manufacturing company sells the factory that it has been using to manufacture its goods, the profit on sale of the factory is not subject to tax.
One-Tier Corporate Tax System
- The one-tier corporate tax system, which took effect from 1 January 2003, was introduced to replace the old imputation system.
- Under the one-tier corporate tax system, Singapore resident companies can issue one-tier exempt dividends, i.e. shareholders will not be taxed on such dividend income.
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Tax Rates & Exemptions
- From Year of Assessment (YA) 2008, companies are taxed at a flat rate of 18% on their chargeable income.
- There are three tax exemptions to help companies tide through economic downturns, encourage entrepreneurship and position Singapore as a business hub.
Partial Tax Exemption*
- From the YA 2002, a partial tax exemption is given on the company’s chargeable income (excluding Singapore franked dividends) of up to S$100,000, which is subject to tax at the normal corporate tax rate as follows:
- 75% tax exemption for the first S$10,000 chargeable income
- 50% tax exemption for the next S$90,000 chargeable income
- From YA 2008, the amount of normal chargeable income (excluding Singapore dividends) qualifying for the partial tax exemption will be increased to S$300,000 and the tax exemption will be given as follows:
- 75% tax exemption for the first S$10,000 chargeable income
- 50% tax exemption for the next S$290,000 chargeable income
Full Tax Exemption For New Companies*
- With effect from YA 2005, full tax exemption can be granted on up to S$100,000 of the normal chargeable income (excluding Singapore franked dividends), for any of its first three consecutive YAs from YA 2005.
- There are conditions and criteria you need to satisfy in order to make use of this tax exemption. Please refer to our write-up on Tax Exemption For Start-ups.
Tax Exemption For Foreign-Sourced Income*
- Foreign-sourced dividends, foreign branch profits and foreign-sourced service income remitted into Singapore on or after 1 June 2003 by a Singapore resident company will be tax exempt if:
- the headline tax rate of the foreign country from which income is received from is at least 15% in the year the income is recei