Singapore: Domestic Corporate Taxation
Corporation Tax Rates
The corporate income tax rate is 17% (decreased from 18% prior to 2010).
There is a partial tax exemption on normal chargeable income (excluding Singapore franked dividends) of up to SGD300,000, as follows:
- 75% on the first SGD10,000 of income; then
- 50% on the next SGD290,000,
which gives a total exemption of SGD152,500.
New start-up companies benefit from full tax exemption on the first SGD100,000 of normal chargeable income for the first three consecutive years of assessment, plus a further 50% exemption (from tax year 2008) on the next SGD200,000 of normal chargeable income (in both cases, excluding Singapore franked dividends). Therefore, a new start-up company can qualify for a total exemption of up to SGD200,000 in each of the first three years of business.
International and regional headquarters can benefit from reduced corporate income tax rates of 10% and 15% respectively (see Singapore Investments by Foreigners). There are also reduced corporate income tax rates and exemptions available to companies involved in shipping and maritime activities (see Singapore Ship Management and Maritime Operations).