• Corporate Tax
• Company Tax Exemption Scheme
• GST
• Personal Income Tax – Non Residents
• Personal Income Tax – Residents
• Property Tax
• Withholding Tax

Corporate Tax

Corporate Tax Rate

With effect from YA 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.

Tax Schemes to Lower Tax Payable

(1) Tax Exemption Scheme for New Start-Up Companies
Under the scheme, qualifying new companies are given the following tax exemption for the first three consecutive YAs where the YA falls in:

YA 2020 onwards

• 75% exemption on the first $100,000 of normal chargeable income*; and
• A further 50% exemption on the next $100,000 of normal chargeable income*.

YA 2019 and before

• Full exemption on the first $100,000 of normal chargeable income*; and
• A further 50% exemption on the next $200,000 of normal chargeable income*.

(2) Partial Tax Exemption for all companies
All companies including companies limited by guarantee can enjoy the following tax exemption:

YA 2020 onwards

• 75% exemption on the first $10,000 of normal chargeable income*; and
• A further 50% exemption on the next $190,000 of normal chargeable income*.

YA 2019 and before

• 75% exemption on the first $10,000 of normal chargeable income*; and
• A further 50% exemption on the next $290,000 of normal chargeable income*.

(3) Corporate Income Tax Rebate
Corporate income tax rebate is given to all companies to ease business costs and support restructuring by companies and is applicable for YA 2013 to YA 2020.

All companies will receive a corporate income tax rebate of the following:

• 25% corporate income tax rebate, capped at $15,000 for YA 2020;
• 20% corporate income tax rebate, capped at $10,000 for YA 2019;
• 40% corporate income tax rebate, capped at $15,000 for YA 2018;
• 50% corporate income tax rebate, capped at $25,000 for YA 2017;
• 50% corporate income tax rebate, capped at $20,000 for YA 2016; and
• 30% corporate income tax rebate, capped at $30,000 per YA for YA 2013 to YA 2015.

Corporate income tax rebate is computed on the tax payable after deducting tax set-offs (e.g. foreign tax credit).

* Normal chargeable income refers to income to be taxed at the prevailing corporate tax rate.

Tax Forms That Companies Must Submit Yearly

All companies need to submit two corporate income tax returns to IRAS every year:

• Estimated Chargeable Income (ECI) within three months from the company’s financial year end except for (a) companies that fulfil the conditions under the Administrative Concession; and (b) certain entities that are not required to file ECI; and
• Corporate Income Tax Returns commonly known as Form C-S or Form C by 15 Dec 2020 for YA 2020, and 30 Nov from YA 2021 onwards except dormant companies for which IRAS has waived the requirement to file.

Companies That Do Not Need to Submit ECI

To reduce the compliance cost on businesses, IRAS has increased the annual revenue threshold for ECI waiver from $1 million to $5 million. Your company does not need to file the ECI for that particular YA if it meets the following criteria:

• Annual revenue is not more than $5 million* for the financial year; and
• ECI** is NIL for the YA.

* For financial year ending in or before Jun 2017, the revenue threshold to qualify for the ECI waiver is $1 million, i.e. the company’s annual revenue is not more than $1 million for the financial year.

** The ECI should be the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies.

There is no need to inform IRAS if the company meets the conditions and does not need to file its ECI.