Singapore Corporate Tax Rates

Corporate Tax Rates

Budget 2013 Update: Corporate Income Tax Rebate

As announced in Budget 2013, companies will receive a 30% corporate income tax rebate capped at $30,000 per Year of Assessment (YA) over a three year period (from YA 2013 to YA 2015). The corporate income tax rate has remain unchanged from the previous year.

Singapore Historic Headline Corporate Tax Rates

Year of Assessment Rate
2010 to 2016 17%
2008 and 2009 18%
2005 to 2007 20%
2003 and 2004 22%
2002 24.5
2001 25.5
2000 26%

New Startup Companies Pay Zero Tax*

To support Singapore startups during their initial years of operation, the Singapore government has declared a full tax exemption for newly incorporated companies.

Taxable Income Effective Tax Rates
(Full Tax Exemption)
$100K 0
$300K 3.97%
$500K 7.14%
$1M 10.6%
$5M 15.72%
$10M 16+%

Qualifying Conditions:

  • No more than 20 individual shareholders
  • Where there are corporate shareholders, at least 1 shareholder should be an individual with minimum 10% shareholding

For all other companies:

  • Property development and investment holding companies incorporated from 26 February 2013 will not be eligible for the FULL start up tax exemption (SUTE) scheme, only the partial tax exemption available to all companies.
  • A company that does not qualify for a tax exemption for new start-up companies will be given partial tax exemption.
  • Applicable to all companies with 100% corporate shareholding.
Taxable Income Effective Tax Rates
Partial Tax Exemption
$100K 5.65%
$300K 5.80%
$500K 8.27%
$1M 11.41%
$5M 15.88%
$10M 16+%

 

Financial Year End

Did you know? It is best to keep the company’s FYE within 365 days in order to enjoy the Zero Tax Exemption for new start-up companies (full tax exemption on the first $100,000 of normal chargeable income for its first three consecutive YA).

Singapore Withholding Tax Rates

Withholding Tax on Payments to Non-Residents (Selected Transactions):

Dividends Exempt
Interest 15%
Royalties 10%
Company director’s remuneration 20%
Technical assistance and services fees 17%
Rent on moveable property 15%
Management fees 17%
Charter fees for ship or aircraft 0-2%
Filing Dates
Income tax returns (Form C) 30 Nov
Withholding tax 15th of each month following payment (or deemed payment)
GST returns (GST F5) One month after the end of prescribed accounting period. The prescribed accounting period can be 3 months (standard) or 1 month (optional)
Stamp Duty Document signed in Singapore: 14 days from date of execution
Document signed overseas: 30 days from receipt of the document in Singapore
Property Tax Property tax is assessed in advance and payable by 31 January of each year (generally no returns required to be filed)

Other Tax Incentives

To encourage foreign capital inflow into Singapore, there are tax incentives provided to various industries namely in the form of reduced corporate tax rates.

Name of Company 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%

Need more info about Singapore taxation?

AsiaBiz has tax and accounting specialists who can answer your queries. Contact us now for a free consultation.
Contact Us
Share This
Call Us
Skype
Text Us
Email Us