Singapore Tax Rates

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:

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:

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:

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 companiesFor 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 companiesEffective 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 rebateFor 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 rebateFor 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