Tax Rate

The corporate tax rate is 17%.

It is applicable as follows:

  • The first $300,000 of a company’s chargeable income is partially exempt from tax:
    • 75% of the first $10,000 of chargeable income; and
    • 50% of the next $290,000 of the chargeable income.
  • The balance of chargeable income is subject to tax at the rate of 17%

Assuming that the chargeable income of the company ‘My Co’ registered in Singapore was $560,000, the corporate income tax would be:

Chargeable income Exemption Tax Rate Income Tax
$10,000 75% 17% $425
$290,000 50% 17% $24,650
$260,000 0% 17% $44,200
$560,000     $69,275

For newly incorporated companies with tax residents in Singapore, and which have no more than 20 shareholders all of whom are individuals or at least 1 of whom is an individual who holds at least 10% of the total number of issued ordinary shares, there are further exemptions for the first 3 consecutive YAs:

  • 100% of the first $100,000 of chargeable income; and
  • 50% of the next $200,000 of chargeable income.

This exemption is not available to property development companies or investment holding companies. These companies are given partial tax exemption.

Assuming ‘My Co’ was 10% owned by an individual and 90% held by a holding company based in Italy, the corporate income tax would instead be:

Chargeable income Exemption Tax Rate Income Tax
$100,000 100% 17% -
$200,000 50% 17% $17,000
$260,000 0% 17% $44,200
$560,000     $61,200

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