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 $30,000 per Year of Assessment (YA) over a three year period (from YA 2013 to YA 2015). The Singapore corporate income tax rate has remained unchanged from the previous year.
Singapore Historic Headline Corporate Tax Rates
| Year of Assessment | Rate |
|---|---|
| 2010 to 2016 | 17% |
| 2008 and 2009 | 18% |
| 2005 to 2007 | 20% |
| 2003 and 2004 | 22% |
| 2002 | 24.5 |
| 2001 | 25.5 |
| 2000 | 26% |
New Startup Companies Pay Zero Tax*
To support Singapore startups during their initial years of operation, the Singapore government has declared a full tax exemption for newly incorporated companies.
| FULL EXEMPTION FOR NEW STARTUP COMPANIES (YA 2018) | ||
|---|---|---|
| Chargeable Income ($) | Estimated Tax (S$) | Effective tax rate |
| 100,000 | 0 | 0% |
| 200,000 | 5,100 | 2.55% |
| 300,000 | 10,200 | 3.40% |
| 400,000 | 20,400 | 5.10% |
| 500,000 | 36,000 | 7.20% |
| 1,000,000 | 121,000 | 12.10% |
| 2,000,000 | 291,000 | 14.55% |
| 3,000,000 | 461,000 | 15.37% |
| 5,000,000 | 801,000 | 16.02% |
| 10,000,000 | 1,651,000 | 16.51% |
Qualifying Conditions:
- No more than 20 individual shareholders
- Where there are corporate shareholders, at least 1 shareholder should be an individual with minimum 10% shareholding
For all other companies:
- Property development and investment holding companies incorporated from 26 February 2013 will not be eligible for the FULL start up tax exemption (SUTE) scheme, only the partial tax exemption available to all companies.
- A company that does not qualify for a tax exemption for new start-up companies will be given partial tax exemption.
- Applicable to all companies with 100% corporate shareholding.
| PARTIAL TAX EXEMPTION FOR ALL OTHER COMPANIES (YA 2018) | ||
|---|---|---|
| Chargeable Income ($) | Estimated Tax (S$) | Effective tax rate |
| 100,000 | 4,845 | 4.85% |
| 200,000 | 9,945 | 4.97% |
| 300,000 | 15,045 | 5.02% |
| 400,000 | 27,075 | 6.77% |
| 500,000 | 44,075 | 8.82% |
| 1,000,00 | 129,075 | 12.91% |
| 2,000,000 | 299,075 | 14.95% |
| 3,000,000 | 469,075 | 15.64% |
| 5,000,000 | 809,075 | 16.18% |
| 10,000,000 | 1,659,075 | 16.59% |
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) | Paper filing by 30 Nov. E-filing by 15 Dec. |
| 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% |
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