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