Corporate tax

Corporate Tax

To fully utilise the tax benefits available for the company, it is essential for a company to manage their income tax matters efficiently. We have many years experience in helping our clients to achieve tax efficiencies.  Our range of tax services include:

  • Tax computation 
  • Estimated Chargeable Income (ECI) and corporate tax filing
  • business firm, partnership and personal tax filing
  • Optimizing use of tax incentive, relief, allowance, deduction and exemption
  • Corporate tax compliance
  • Assist in tax query, audit and dispute
  • Tax planning 

With effect from Year of Assessment 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.

Partial tax exemption for companies (From YA 2020)

All companies including companies limited by guarantee can enjoy Partial tax exemption unless they have already claimed the Tax Exemption Scheme for New Start-Up Companies. Qualifying companies can enjoy 75% tax exemption on the first $10,000 of the chargeable income; and A further 50% tax exemption on the next $190,000 of the chargeable income.

The maximum exemption to be enjoyed is $102,500. 

Tax exemption for new start-up companies

Under the scheme, qualifying new companies are given 75% exemption on the first $100,000 chargeable income and a further 50% exemption on the next $100,000 of chargeable income for the first three consecutive YAs. The maximum exemption per YA is therefore $125,000.

The exemption is available only for the first three YAs. From the fourth YA onwards, the company can enjoy the partial tax exemption like all qualifying companies. 

The tax exemption is open to all new companies except these two types of companies:

  • A company whose principal activity is that of investment holding; and
  • A company whose principal activity is that of developing properties for sale, investment, or both.

To qualify for tax exemption for start-ups, eligible companies must satisfy these three qualifying conditions:

  • The company must be incorporated in Singapore;
  • The company must be a tax resident in Singapore for that YA;
  • The company’s total share capital is beneficially held directly by no more than 20 shareholders throughout the basis period for that YA where:
    1. all of the shareholders are individuals; or
    2. at least one shareholder is an individual holding at least 10% of the issued ordinary shares of the company.