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Corporate Tax
A company is taxed at a flat rate on its chargeable income regardless of whether it is a local or foreign company.
S$100,000 normal chargeable income Tax Exemption for qualifying New Start-up Companies for first 3 consecutive years.
The Tax Rates and Tax Exemption / Rebate for each Year of Assessment (YA) are as follows:
|
Year of Assessment (YA) |
Tax rate |
Tax exemption / rebate |
|
2010 onwards |
17% |
Companies will continue to enjoy the partial tax exemption scheme and tax exemption scheme for new start-up companies as provided in YA 2008 and YA 2009.
In addition, with effect from YA 2010, the tax exemption scheme for new start-up companies will be extended to include companies limited by guarantee, subject to the same conditions. |
|
2008 and 2009 |
18% |
Partial tax exemption for companies
Effective from YA 2008, a partial tax exemption is given to companies on normal chargeable income* (excluding Singapore franked dividends) of up to $300,000 as follows:
Exempt amount
|
First $ 10,000 |
@ 75% |
= $ 7,500 |
|
Next $290,000 |
@ 50% |
= $145,000 |
|
Total $300,000 |
|
$152,500.00 |
Tax exemption scheme for new start-up companies
Since YA 2005, a qualifying company can claim for full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for its first three consecutive YA.
Effective from YA 2008, a further 50% exemption is given on the next $200,000 on a qualifying company`s normal chargeable income* (excluding Singapore franked dividends).
The tax exemption for new start-up companies on chargeable income of up to $300,000 is as follows:
Exempt amount
|
First $100,000 |
@ 100% |
= $100,000 |
|
Next $200,000 |
@ 50% |
= $100,000 |
|
Total $300,000 |
|
$200,000.00 |
A company that does not qualify for a tax exemption for new start-up companies will be given partial tax exemption. |
|
2005 to 2007 |
20% |
Partial tax exemption for companies
For YA 2005 to YA 2007, a partial tax exemption is given to companies on normal chargeable income* (excluding Singapore franked dividends) of up to $100,000 as follows:
Exempt amount
|
First $ 10,000 |
@ 75% |
= $ 7,500 |
|
Next $ 90,000 |
@ 50% |
= $45,000 |
|
Total $100,000 |
|
$52,500.00 |
Tax exemption scheme for new start-up companies
Effective from YA 2005, a qualifying company can claim for a full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for its first three consecutive YA.
The tax exemption on the $100,000 chargeable income is as follows:
Exempt amount
First $100,000 @ 100% = $100,000
A company that does not qualify for tax exemption for new start-up companies will be given partial tax exemption. |
|
2003 and 2004 |
22% |
Partial tax exemption for companies
For YA 2003 and YA 2004, the partial tax exempt amount is the same as that for YA 2005 to YA 2007. |
|
2002 |
24.5% |
Partial tax exemption for companies
Effective from YA 2002, a partial tax exemption is given to companies on normal chargeable income* (excluding Singapore franked dividends) of up to $100,000. The partial tax-exempt amount is the same as that for YA 2005 to YA 2007.
Tax rebate
For YA 2002, a tax rebate of 5% on the gross tax payable (excluding tax on Singapore dividends and tax on income subject to final withholding tax) is given. |
|
2001 |
25.5% |
Tax rebate
For YA 2001, a tax rebate on the gross tax payable (excluding tax on Singapore dividends and tax on income subject to final withholding tax) is given.
The tax rebate is computed as follows:
50% on first tax payable of $25,500
5% on balance of tax payable in excess of $25,500 (i.e. gross tax payable less $25,500) |
* Normal chargeable income refers to income to be taxed at the prevailing corporate tax rate
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