Singapore Corporate Tax System: What You Need to Know
Overview
Singapore’s tax system is designed to be business-friendly, with low rates and various exemptions that encourage entrepreneurship and investment.
Expanded Key Points:
Flat Corporate Tax Rate – 17%
Corporate chargeable income is taxed at a flat 17% rate. [iras.gov.sg],
- Partial Tax Exemption for SMEs
- 75% exemption on the first S$10,000 of chargeable income.
- 50% exemption on the next S$190,000 of chargeable income. [iras.gov.sg], [iras.gov.sg]
- Start-Up Tax Exemption
- 75% exemption on the first S$100,000 of charged income for each of the first 3 YAs.
- 50% exemption on the next S$100,000 of charged income. [iras.gov.sg]
- Group Relief & Carry-Forward of Losses
Group Relief is a tax mechanism that allows companies within the same group to offset certain current-year losses against the taxable income of another group company. This system treats group companies as if they are a single economic entity for tax purposes
- Annual Tax Filing via IRAS
- Companies must file Form C-S or Form C (e-filing preferred), along with estimated chargeable income (ECI). [iras.gov.sg]
- Avoiding Double Taxation
Singapore has signed Avoidance of Double Taxation Agreements (“DTAs”), limited DTAs and Exchange of Information Arrangements (“EOI Arrangements”) with around 100 jurisdictions.