Singapore Corporate Tax Service
Hotline: 86-755-82143422 Email: anitayao@citilinkia.com
Singapore corporate tax guide provides a detailed overview of income tax rates, tax system, and tax incentives for Singapore companies.
Singapore Corporate Tax Guide - Single-tier Income Tax System
Since January 1, 2003, Singapore has adopted a single-tier corporate income tax system, which means there is no double-taxation for stakeholders. Tax paid by a company on its chargeable income is the final tax and all dividends paid by a company to its shareholders are exempt from further taxation.
There is no tax on capital gains in Singapore. Examples of capitals gains include gains on sale of fixed assets, gains on foreign exchange on capital transactions, etc.
Singapore Corporate Tax Guide - Headline Tax Rate
Singapore’s headline corporate tax rate is a flat 17%. In order to make Singapore as an attractive investment destination, income tax rates in Singapore have been going down consistently.
Headline income tax rate in Singapore as in many other jurisdictions does not necessarily provide an accurate indication of effective corporate tax rate. The effective rate is normally lower than the headline tax rate due to applicable tax exemptions and tax incentives, depreciation rules, etc.
Singapore Corporate Tax Guide - General Tax Incentives
Listed below are general tax exemptions/incentives currently available to Singapore resident companies. Once these tax exemptions are applied to the taxable income, the effective income tax rate for small-to-midsize Singapore companies is reduced significantly.
0% tax on S$100K taxable income
The corporate income tax rate is 0% on the first S$100,000 taxable income for each of the first three tax filing years for a newly incorporated company that meets the following conditions:
be incorporated in Singapore
be tax resident in Singapore
has no more than 20 shareholders of which at least one is an individual shareholder holding at least 10% of shares.
8.5% tax on taxable income of up to S$300K
All Singapore resident companies are eligible for partial tax exemption which effectively translates to about 8.5% tax rate on taxable income of upto S$300,000 per annum. The taxable income above S$300,000 will be charged at the normal headline corporate tax rate of 17%.
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