Singapore’s headline corporate tax rate is a flat 17%. Most companies pay far less. The partial tax exemption, the start-up tax exemption, and the Year of Assessment (YA) 2025 corporate income tax rebate pull the effective rate well below the headline number. The Inland Revenue Authority of Singapore (IRAS) administers every corporate tax at the national level. There is no state, provincial, or municipal corporate tax.
This guide to corporate taxes in Singapore covers the rate, exemptions, filing, deadlines, penalties, withholding tax, and the global minimum tax. Every figure is sourced to IRAS or the Ministry of Finance. Verify current rates on the IRAS Corporate Income Tax Rates page.
What Is the Corporate Tax Rate in Singapore?
Singapore levies a flat 17% corporate income tax on chargeable income, for both local and foreign companies, per IRAS. It is national only, with no state or municipal corporate tax. The rate is not progressive. The tiered exemptions below are what create the lower effective rates companies actually pay.
| Tax | Rate | Notes and source |
|---|---|---|
| Corporate income tax | 17% flat | On chargeable income (IRAS) |
| Goods and Services Tax (GST) | 9% | Separate consumption tax since 1 Jan 2024 (IRAS) |
| Withholding tax (WHT) | 10%–24% | By payment type; see the WHT section (IRAS) |
| Capital gains tax (CGT) | None | Except revenue gains and Section 10L; see CGT section (IRAS) |
| Dividends (one-tier) | 0% | Tax-exempt in shareholders’ hands (IRAS) |
The rate has been a flat 17% since YA 2010, down from 20% in YA 2005 and 22% in YA 2003, per data.gov.sg.
How Is Chargeable Income Calculated in Singapore?
Chargeable income equals taxable revenue minus deductible expenses incurred wholly and exclusively in producing income, minus capital allowances and unutilised losses, before exemptions apply, per IRAS. Accounting depreciation is not deductible. Companies claim capital allowances on plant and machinery instead. The 17% rate then applies to what remains.
Unutilised losses carry forward indefinitely, provided there is no substantial change in shareholders, meaning common shareholders hold 50% or more of shares between the test dates, per IRAS. A company can also carry back up to SGD 100,000 of unutilised losses and capital allowances to the immediately preceding YA under IRAS loss carry-back relief.
Does Singapore Have a Capital Gains Tax?
No. Singapore imposes no capital gains tax, per IRAS, with two exceptions. Gains that are revenue in nature, judged on intent and frequency under the “badges of trade”, are taxed as ordinary income. And Section 10L of the Income Tax Act, effective 1 January 2024, taxes gains on disposals of foreign assets received in Singapore by multinational-group entities that lack economic substance here.
IRAS explains the substance test and exclusions in its Section 10L e-Tax guide. For most operating companies, ordinary capital gains remain untaxed.
How Does Singapore’s One-Tier Taxation System Work?
Under Singapore’s one-tier taxation system, the corporate tax a company pays on its chargeable income is the final tax, per IRAS. Dividends paid by Singapore-resident companies are tax-exempt in shareholders’ hands, regardless of residency. There is no dividend withholding tax.
This matters for founders and investors. Profits are taxed once, at the company level. There is no second layer of tax when profits are distributed, unlike classical systems that tax the company and then the shareholder on the same income.
What Is the Partial Tax Exemption for Singapore Companies?
Every company not on the start-up scheme qualifies for the partial tax exemption (PTE), per IRAS. It exempts 75% of the first SGD 10,000 of chargeable income and 50% of the next SGD 190,000. That shields up to SGD 102,500 on the first SGD 200,000. The exemption is available to all companies under Section 43 of the Income Tax Act 1947.
| Tier | Exemption | Amount exempt | Source |
|---|---|---|---|
| First SGD 10,000 | 75% | SGD 7,500 | IRAS |
| Next SGD 190,000 | 50% | SGD 95,000 | IRAS |
| Total (first SGD 200,000) | 75% and 50% tiers | SGD 102,500 | IRAS |
Worked example: a company with exactly SGD 200,000 of chargeable income is taxed on only SGD 97,500 after the PTE, per IRAS. At 17%, that is roughly an 8.3% effective rate before any rebate.
Which New Companies Qualify for the Start-up Tax Exemption?
Qualifying new companies get the start-up tax exemption (SUTE): 75% of the first SGD 100,000 and 50% of the next SGD 100,000 are exempt, for their first three consecutive YAs, up to SGD 125,000 exempt, per IRAS. The company must be incorporated in Singapore, tax resident for that YA, and hold no more than 20 shareholders, all individuals or with at least one individual holding 10% or more of ordinary shares.
| Tier | Exemption | Amount exempt | Source |
|---|---|---|---|
| First SGD 100,000 | 75% | SGD 75,000 | IRAS |
| Next SGD 100,000 | 50% | SGD 50,000 | IRAS |
| Total (first SGD 200,000) | 75% and 50% tiers | SGD 125,000 | IRAS |
Two types of company are excluded, per IRAS: investment holding companies deriving mainly passive income such as dividends and rent, and companies developing property for sale or investment. They claim the PTE instead. The scheme was trimmed from its pre-YA 2020 100%/50% structure.
Who Is Eligible for the CIT Rebate and Cash Grant in 2025?
Budget 2025 grants all companies a 50% corporate income tax (CIT) rebate for YA 2025, per the Ministry of Finance (MOF), announced on 18 February 2025. Active companies that made Central Provident Fund (CPF) contributions for at least one local employee in 2024 receive a minimum SGD 2,000 CIT Rebate Cash Grant. The combined rebate and grant is capped at SGD 40,000 per company.
| Measure | YA 2024 | YA 2025 | Source |
|---|---|---|---|
| Rebate percentage | 50% | 50% | MOF (Budget 2024 / Budget 2025) |
| Minimum cash grant | SGD 2,000 | SGD 2,000 | IRAS / EDB |
| Local employee condition year | 2023 | 2024 | IRAS / MOF |
| Combined cap | SGD 40,000 | SGD 40,000 | MOF |
| Disbursement | by 25 Aug 2024 | from Q2 2025 | IRAS |
The rebate is automatic, computed by IRAS with no application, per the Singapore Budget 2025 highlights. The often-quoted SGD 38,000 figure is simply the rebate portion left after the SGD 2,000 cash grant is netted against the SGD 40,000 cap.
Will the Singapore Corporate Tax Rate Change in 2026 for Startups?
No. The 17% rate and the SUTE structure are unchanged for YA 2026 as announced to date, per IRAS. A startup planning for 2026 uses the same 75% and 50% exemption tiers. Income earned in financial year 2025 is assessed in YA 2026, with the annual return due 30 November 2026.
How Do You File Corporate Tax in Singapore? (Step-by-Step)
Singapore companies file twice a year through the IRAS myTax Portal, per IRAS. First, the Estimated Chargeable Income (ECI) within three months of the financial year end, waived if revenue is SGD 5 million or less and ECI is nil. Second, the annual return, Form C-S or Form C, by 30 November. E-filing is mandatory.
Steps for a new company:
- Register for Corppass and set up myTax Portal access.
- Determine your Year of Assessment and basis period.
- File your ECI within three months of financial year end, unless waived.
- Prepare financial statements and the tax computation.
- Determine the correct return: Form C-S (Lite), Form C-S, or Form C.
- E-file the return by 30 November.
- Receive the Notice of Assessment (NOA) and pay within one month.
What Is the Difference Between Form C and Form C-S?
Form C-S is a simplified return for Singapore-incorporated companies with annual revenue of SGD 5 million or below, taxed at 17%, and not claiming carry-back relief, group relief, investment allowance, foreign tax credit, or double tax relief (DTR), per IRAS. Form C-S (Lite) covers revenue of SGD 200,000 or below. Form C, with financial statements and tax computation attached, applies to everyone else.
| Form | Who | Attachments at filing | Source |
|---|---|---|---|
| Form C-S (Lite) | Revenue ≤ SGD 200,000, meets C-S conditions | None | IRAS |
| Form C-S | Revenue ≤ SGD 5 million, no complex reliefs | None | IRAS |
| Form C | All other companies | Financial statements and tax computation | IRAS |
IRAS sets out the eligibility conditions in its YA 2026 Form C explanatory notes.
Can You Get a Tax Filing Deadline Extension?
No automatic extension exists. IRAS does not routinely extend the 30 November deadline, per IRAS. Requests are exceptional and must be made in advance through the myTax Portal before the deadline. Plan the ECI and return dates into your compliance calendar rather than relying on an extension.
What Are the Corporate Tax Payment Deadlines in Singapore?
Corporate tax is due within one month of the Notice of Assessment (NOA) date, even if the company files an objection, per IRAS. Paying by GIRO spreads the bill into interest-free monthly instalments. A Notice of Objection must be filed within two months of the NOA date, not 30 days.
| Item | Deadline | Source |
|---|---|---|
| ECI | 3 months after financial year end | IRAS |
| Annual return (Form C-S/C) | 30 November of the YA | IRAS |
| Tax payment | 1 month after NOA date | IRAS |
| Notice of Objection | 2 months from NOA date | IRAS |
IRAS may raise or amend an assessment up to four years after the end of the YA, with no time limit for fraud or wilful default.
What Are the Penalties for Late Filing or Late Payment?
Late payment triggers an immediate 5% penalty on the unpaid tax, per IRAS. If the tax stays unpaid 60 days after that, an extra 1% is added per month, up to a further 12%, for a maximum of 17%. Late filing can trigger an estimated NOA, a composition amount of up to SGD 5,000, and prosecution for continued non-filing.
| Offence | Penalty | Source |
|---|---|---|
| Late payment | 5% of unpaid tax | IRAS |
| Still unpaid after 60 days | +1% per month, up to 12% more (17% maximum) | IRAS |
| Late or non-filing | Estimated NOA plus composition up to SGD 5,000 | IRAS |
| Continued non-filing | Prosecution and court fine | IRAS |
Commenda’s penalties for non-compliance guide breaks these down for Singapore filers.
How Does Withholding Tax Work in Singapore?
Withholding tax applies to specific payments made to non-residents, per IRAS: 15% on interest, 10% on royalties, 17% on technical and management service fees for services performed in Singapore, and 24% on non-resident director remuneration. Dividends carry 0% under the one-tier system. Treaty rates can be lower.
| Payment to non-resident | WHT rate | Source |
|---|---|---|
| Interest, commissions, loan fees | 15% | IRAS |
| Royalties | 10% | IRAS |
| Technical and management service fees (services in Singapore) | 17% | IRAS |
| Non-resident director remuneration | 24% | IRAS |
| Dividends | 0% | IRAS |
The payer files Form IR37 and pays the tax by the 15th of the second month following the payment date, per payment, through the myTax Portal, per IRAS. Late WHT payment attracts a 5% penalty plus 1% per additional month, up to 15%. Singapore’s 90-plus comprehensive tax treaties can reduce these rates. For the mechanics, see Commenda’s Withholding Tax in Singapore (Form IR37) guide.
Does the Global Minimum Tax Affect Singapore Companies?
Only multinational enterprise (MNE) groups with annual global revenue of EUR 750 million or more are in scope, per IRAS. For financial years starting on or after 1 January 2025, Singapore applies the Income Inclusion Rule (IIR) and the Domestic Top-up Tax (DTT) under BEPS 2.0 Pillar Two. The 17% rate is unchanged for every other company.
Under the IIR, a Singapore parent computes and pays top-up tax on foreign subsidiaries whose effective rate is below 15%, per IRAS. The DTT tops up the group’s Singapore operations to a 15% effective rate, so the top-up is collected in Singapore rather than abroad. The Undertaxed Profits Rule (UTPR) was not implemented in the initial phase. IRAS confirms the design in its Budget 2024 overview of tax changes.
How Do Singapore’s Tax Treaties Prevent Double Taxation?
Singapore has Double Taxation Agreements (DTAs) and Exchange of Information (EOI) arrangements with around 100 jurisdictions, per IRAS. Treaties allocate taxing rights and relieve double tax by either exempting the income or crediting the foreign tax paid. The method depends on the treaty article for the income type.
In practice, a Singapore company claims a foreign tax credit, capped at the Singapore tax on that income, on its return, per IRAS. Alternatively, it takes full exemption for foreign dividends, branch profits, and service income under the Section 13(8) Foreign-Sourced Income Exemption (FSIE), where the foreign headline rate is at least 15% and the income was taxed abroad. A Certificate of Residence from IRAS is needed to claim treaty rates. Some DTAs are modified by the Multilateral Instrument (MLI).
What Other Tax Incentives Can Singapore Companies Claim?
Beyond the exemptions, Singapore offers activity and sector incentives that cut rates to 5%–15% or multiply deductions, administered by IRAS and the Economic Development Board (EDB).
| Incentive | Benefit | Source |
|---|---|---|
| Pioneer Tax Incentive | Exemption for up to 15 years | EDB |
| Development and Expansion Incentive | Concessionary 5%, 10%, or 15% rate | EDB |
| Enterprise Innovation Scheme (EIS) | Up to 400% deductions, capped per activity | IRAS |
| Investment Allowance | Allowance on qualifying capital expenditure | EDB |
| Global Trader Programme | Concessionary 5% or 10% rate | EDB |
| IP Development Incentive | Concessionary 5%, 10%, or 15% on IP income | EDB |
| Financial Sector Incentive | Concessionary 5%–15% for financial institutions | EDB |
| Refundable Investment Credit | Credit for substantial qualifying investments | EDB |
How Commenda Helps With Corporate Tax in Singapore
Commenda’s tax and accounting service handles IRAS registration, ECI and Form C-S/C filing, deadline tracking, and exemption and rebate optimization, so controllers have certainty their Singapore annual compliance is handled. It connects to your stack through 100-plus ERP and API integrations, keeping your tax computation in sync with your books.
Pair it with Commenda’s Withholding Tax in Singapore (Form IR37) guide for cross-border payments, the annual compliance guide for Singapore businesses for the wider filing picture, and the compliance calendar to track every deadline in one place.
Book a demo to get a free review of your Singapore filing calendar and exemption eligibility.
