Singapore

Corporate - Taxes on corporate income

Last reviewed - 30 May 2024

Companies (resident and non-resident) that carry on a business in Singapore are taxed on their Singapore-sourced income when it arises and on foreign-sourced income when it is received in Singapore. Non-residents are subject to WHT on certain types of income (e.g. interest, royalties, technical service fees, rental of movable property) where these are deemed to arise in Singapore (for details, see the Withholding taxes section).

Tax on corporate income is imposed at a flat rate of 17%.

A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies are available.

Partial tax exemption (income taxable at normal rate):

Chargeable income (SGD) Exempt from tax Exempt income (SGD)
First 10,000 75% 7,500
Next 190,000 50% 95,000
Total   102,500

Start-up tax exemption (income taxable at normal rate):

Chargeable income (SGD) Exempt from tax Exempt income (SGD)
First 100,000 75% 75,000
Next 100,000 50% 50,000
Total   125,000

The start-up exemption is not available to property development and investment holding companies.

For income year 2023 (year of assessment 2024), eligible companies will receive a non-taxable corporate income tax (CIT) rebate cash grant of SGD 2,000. In addition, all companies will be granted a 50% CIT rebate, capped at SGD 40,000 if the company does not qualify for the CIT rebate cash grant or SGD 38,000 if it does.

Singapore adopts a one-tier taxation system, under which all dividends paid by Singapore-resident companies are tax-exempt in the shareholder’s hands.