Singapore · Guide
The headline is 17%, and it is one of the lowest in the developed world. But 17% is the sticker price, not what a young company actually pays. Thanks to the startup and partial exemptions, a new company's effective rate on its first S$200,000 of profit is closer to 6%.
The honest catch, which most guides skip: that low rate is a starter benefit. It rises as your profit grows, it steps up after year three, and for a foreign founder a low Singapore rate can trigger tax back home. Here is the real math.
This is general information, not tax advice, and corporate tax is a sensitive tax and legal topic where figures change with each Budget. Every number below must be confirmed against IRAS before you rely on it. The YA2026 rebate in particular was revised mid-year.
Singapore corporate tax at a glance
| Feature | Position (confirm with IRAS) |
|---|---|
| Headline rate | 17% flat, resident or non-resident |
| System | One-tier: taxed once at company level, dividends tax-free |
| Capital gains tax | None in general (one 2024 carve-out, below) |
| Startup exemption (SUTE) | First 3 YAs, up to S$125,000 of income exempt |
| Partial exemption (PTE) | Up to S$102,500 exempt, all other companies |
| Foreign income | Remittance basis (taxed when received in Singapore) |
| Return deadline | 30 November each Year of Assessment |
The 17% flat rate
Singapore taxes company profits at a flat 17% on chargeable income (accounting profit adjusted for tax, after capital allowances and reliefs). The rate has been 17% since 2010, and it is the same for resident and non-resident companies. There are no tax brackets on the headline rate, the exemptions below are what actually reduce it.
One-tier system, and no capital gains tax
Two features founders genuinely like:
- One-tier taxation. Tax paid by the company is final. Dividends paid to shareholders are tax-free in their hands, there is no second layer. There is also no withholding tax on dividends.
- No general capital gains tax. Gains that are capital in nature are not taxed. The one caveat to state honestly: since 1 January 2024, gains from the sale of foreign assets received in Singapore can be taxable under a rule known as Section 10L. For most operating companies this does not bite, but if you sell foreign assets, get advice. The deeper foreign-income picture is in tax for non-residents.
Start-Up Tax Exemption (SUTE): the first three years
This is the scheme that makes Singapore cheap for a young company, and it is where outdated guides get it wrong.
Current mechanics (from YA2020):
| Slice of chargeable income | Exemption | Amount exempt |
|---|---|---|
| First S$100,000 | 75% | up to S$75,000 |
| Next S$100,000 | 50% | up to S$50,000 |
| Total | up to S$125,000 per year |
It applies to the first three consecutive Years of Assessment only. After that, you move to the Partial Tax Exemption below.
Eligibility (all conditions apply):
- Incorporated in Singapore and a tax resident for that year.
- No more than 20 shareholders throughout the basis period, and either all shareholders are individuals, or at least one individual shareholder holds 10% or more of the ordinary shares.
- Not an investment-holding company and not a property-development company.
Crucially for foreign founders: foreign ownership does not disqualify you. A company owned by non-residents can claim SUTE as long as the conditions above are met.
The common error to watch for: older articles show "100% exemption on the first S$100,000." That was the pre-2020 scheme and it no longer exists. Since YA2020 the first slice is 75%, not 100%. If a source still shows 100%, it is out of date.
Partial Tax Exemption (PTE): year four onward
Once SUTE's three years end, or if you never qualified, you fall under the Partial Tax Exemption, which is automatic and needs no eligibility test:
| Slice of chargeable income | Exemption | Amount exempt |
|---|---|---|
| First S$10,000 | 75% | up to S$7,500 |
| Next S$190,000 | 50% | up to S$95,000 |
| Total | up to S$102,500 per year |
Note the handover: SUTE exempts up to S$125,000, PTE up to S$102,500. So your tax bill rises in year four even if your profit is flat, simply because the more generous exemption ends.
The YA2026 corporate tax rebate
Singapore often adds a one-year rebate on top of the exemptions. For YA2026, the figure was revised mid-year, which is exactly why you should date it:
| Version | Rebate | Cap | Minimum cash grant |
|---|---|---|---|
| Budget 2026 (18 Feb 2026) | 40% of tax payable | S$30,000 | S$1,500 |
| Enhanced (7 Apr 2026) | 50% of tax payable | S$40,000 | S$2,000 |
The enhanced 50% rebate, capped at S$40,000, is the current YA2026 figure. The minimum cash grant of S$2,000 goes to active companies that employed at least one local employee in 2025, and IRAS applies it automatically, with no application needed.
Treat this as a one-year sweetener, not structure. Rebates are re-decided at each Budget and do not carry automatically into the next year. Confirm the final YA2026 figure, and whatever applies to any later year, directly with IRAS.
What a Singapore company actually pays: the honest math
Here is the part the "8% effective" headlines leave out. These are illustrative figures before any rebate, to show the underlying arc.
A young company on SUTE (first three years):
| Chargeable income | Taxed after SUTE | Tax at 17% | Effective rate |
|---|---|---|---|
| S$100,000 | S$25,000 | S$4,250 | 4.25% |
| S$200,000 | S$75,000 | S$12,750 | 6.38% |
| S$300,000 | S$175,000 | S$29,750 | 9.92% |
A mature company on PTE (year four onward):
| Chargeable income | Taxed after PTE | Tax at 17% | Effective rate |
|---|---|---|---|
| S$200,000 | S$97,500 | S$16,575 | 8.29% |
| S$500,000 | S$397,500 | S$67,575 | 13.52% |
| S$1,000,000 | S$897,500 | S$152,575 | 15.26% |
The honest story in one line: the effective rate is genuinely low only on the first S$200,000, it climbs toward 17% as profit grows, and it steps up after year three when SUTE gives way to PTE. The YA2026 rebate roughly halves a small company's bill this year, but that is temporary. Singapore is cheap for young, small companies and converges on 17% as you scale.
Filing your corporate tax
Two separate filings catch first-year founders out:
| Filing | What it is | Deadline |
|---|---|---|
| ECI (Estimated Chargeable Income) | Your estimated profit for the year | Within 3 months of financial year-end (waiver if revenue is S$5M or less and ECI is nil) |
| Form C-S / C-S (Lite) / C | The actual corporate tax return | 30 November of the Year of Assessment |
Which return form you file depends on revenue: Form C-S (Lite) for revenue up to S$200,000, Form C-S for revenue up to S$5 million, and Form C above that. You file through the myTax Portal. Remember that a Year of Assessment taxes the profit of the preceding financial year (the basis period). The accounting and audit side of compliance is covered in Singapore compliance.
Foreign founders: the low-rate catch
This is the paragraph no competitor writes, and it matters most to you. A low Singapore effective rate is attractive, but if you are a founder tax-resident somewhere else, your home country's controlled-foreign-company (CFC) rules may tax that Singapore profit back home anyway. US founders face GILTI and Subpart F; many EU and UK founders face CFC and place-of-management rules. The "saving" can be clawed back where you live.
Singapore also taxes foreign-sourced income on a remittance basis (when received in Singapore), with exemptions available to tax residents. None of this is a reason to avoid Singapore, but it is a reason to plan with your home-country position in view. The full treatment is in tax for non-residents.
Singapore versus Hong Kong corporate tax
A fair comparison, since founders weigh the two:
| Factor | Singapore | Hong Kong |
|---|---|---|
| Rate | 17% flat | 8.25% on first HK$2M, 16.5% above (two-tier) |
| Young-company relief | SUTE and PTE exemptions | None equivalent |
| Basis | Remittance | Pure territorial |
| Dividend tax | None (one-tier) | None |
| Capital gains tax | None in general | None |
The honest read: Singapore rewards young and small companies through SUTE and PTE, which can push a startup's effective rate on its first S$200,000 below Hong Kong's. As profit scales, Singapore rises toward 17% while Hong Kong's two-tier rate stays lower, so Hong Kong rewards scale. See our Hong Kong corporate tax guide for that side.
The bottom line, and how CorpSec helps
Singapore's 17% is a headline, not your bill. SUTE and PTE make a young company genuinely cheap to run, the YA2026 rebate helps this year, and the effective rate stays low on your first S$200,000 before climbing toward 17% as you grow. The two things to plan for are the year-four step-up and your home-country tax position.
CorpSec structures your Singapore company with the exemptions and filing handled correctly, keeps your ECI and Form C-S on schedule, and, because we work with cross-border founders, flags the home-country and CFC issues most providers ignore.
Frequently asked questions
What is the corporate tax rate in Singapore?
A flat 17% on chargeable income, the same for resident and non-resident companies. Startup and partial exemptions reduce the effective rate well below 17% on early profits.
How much tax does a startup actually pay?
With the Start-Up Tax Exemption, a young company's effective rate on its first S$200,000 of profit is roughly 6% before any rebate. It rises as profit grows and after the third year, when the startup exemption is replaced by the partial exemption.
What is the Start-Up Tax Exemption (SUTE)?
For the first three Years of Assessment, 75% of the first S$100,000 of income and 50% of the next S$100,000 are exempt, up to S$125,000 exempt per year. It requires no more than 20 shareholders with at least one individual holding 10% or more, and excludes investment-holding and property-development companies. Foreign ownership is fine.
Are dividends taxed in Singapore?
No. Singapore uses a one-tier system, so tax is final at the company level and dividends paid to shareholders are tax-free. There is also no general capital gains tax.
When is the corporate tax return due?
The Form C-S or Form C return is due 30 November of the Year of Assessment. Separately, Estimated Chargeable Income (ECI) is usually due within three months of your financial year-end.
Is there a corporate tax rebate for 2026?
Yes. For YA2026 the rebate was enhanced in April 2026 to 50% of tax payable, capped at S$40,000, with a minimum S$2,000 cash grant for companies that employed a local worker in 2025. Rebates change every Budget and do not carry over automatically, so confirm the current figure with IRAS.
Sources
- IRAS: corporate income tax rate, startup and partial exemptions, YA2026 rebate, and filing
- PwC Worldwide Tax Summaries: corroborating Singapore corporate tax rates
Corporate tax figures are current for YA2026 and change with each Budget; confirm the applicable rates, exemptions, and rebate with IRAS before relying on them.