FAQs
Corporate Tax FAQs
Are there any conditions to qualify to these exemptions?
Note: *A qualifying new company must fulfill the following conditions:
- It is incorporated in Singapore;
- It is a tax resident of Singapore for that Year of Assessment;
- It has no more than 20 shareholders throughout the basis period relating to that Year of Assessment;
- All its shareholders are individuals throughout the basis period relating to that Year of Assessment OR start-up companies with corporate shareholders can qualify for the existing Start-Up Tax Exemption Scheme, provided that there is at least one individual shareholder of minimum 10% shareholding.
*A company is resident in Singapore if the control and management of its business is exercised in Singapore.
Tax Rates for Companies
“What is the tax rates for companies for Year of Assessment 2013 and for those who do not qualify for the New Start up exemption rates?”
Singapore corporate tax rate is 17%. When taking into account the rebates and tax exemptions available to resident companies, Singapore has one of the lowest effective corporate tax rates in the world.
Companies that are not eligible for full exemption may still qualify for partial tax exemption, as follows:
| Taxable Income | Effective Tax Rates |
|---|---|
| $100K | 5.65% |
| $300K | 5.80% |
| $500K | 8.27% |
| $1M | 11.41% |
| $5M | 15.88% |
| $10M | 16+% |
What is the Stamp Duty Tax for Property Transfer in Singapore?
| Value of property | Rate (%) |
|---|---|
| First S$180,000 | 1.0 |
| Next S$180,000 | 2.0 |
| Thereafter | 3.0 |
Are there any Tax Incentives for foreign companies to set up in Singapore?
To encourage foreign capital inflow into Singapore, there are tax incentives provided to various industries namely in the form of reduced corporate tax rates.
| Finance & Treasury Centre Co. | 10% |
| Fund Manager | 10%/exempt |
| Headquarters Co. | 10% |
| International Commodity Trader | 10% |
| Offshore Leasing | 10% |
| Oil Trader | 10% |
| Securities Company | 10%/exempt |
| Trustee Company | 10% |
| Arts & Antique Dealers | 10% |
| Asian Currency Unit | 10%/exempt |
| Insurance & Re-insurance Co. | 10%/exempt |
| Members of Commodity Futures Exchange | 10% |
| Pioneer/Incentive Co. | exempt/various |
| Financial Sector Incentive Co. | 5%/10% |
| Cyber Trader | 10% |
| Commodity Derivatives Trader (New) | 5% |
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