Singapore charges corporate income tax at a flat rate of 17% on a company's chargeable income. The same rate applies to both local and foreign companies, with no higher band for larger profits – a feature that keeps the regime simple and internationally competitive.
The effective rate most companies actually pay is often lower than 17%, because of exemptions and rebates. Qualifying new start-ups can claim the Start-Up Tax Exemption (SUTE) for their first three Years of Assessment, all other companies benefit from the Partial Tax Exemption (PTE), and the Government periodically grants a Corporate Income Tax Rebate in the annual Budget.
Chargeable income is your taxable income after deducting allowable business expenses, capital allowances and approved reliefs. Singapore taxes on a preceding-year basis, so income earned in one financial year is assessed in the following Year of Assessment – income for the year ended 2025, for example, is assessed in YA 2026.
Some income may also be taxed at concessionary rates under specific incentive schemes. Apexia can compute your chargeable income, apply every exemption you are entitled to, and help you manage your effective tax rate.