Singapore’s headline corporate tax rate

Singapore’s standard corporate income tax rate is 17% of chargeable income, not 17% of turnover. Chargeable income is calculated after applying relevant tax rules, allowable deductions and adjustments. A company with S$300,000 of revenue and S$280,000 of accounting expenses does not necessarily have S$20,000 of chargeable income: accounting profit and taxable profit can differ.

Start-Up Tax Exemption (SUTE)

Qualifying newly incorporated companies can receive, for their first three consecutive Years of Assessment (YAs), a 75% exemption on the first S$100,000 of normal chargeable income and a 50% exemption on the next S$100,000. The maximum exempt amount is S$125,000 per YA.

To qualify, the company generally must be incorporated in Singapore, be Singapore tax resident for the relevant YA, and have no more than 20 shareholders throughout the relevant basis period, with either all shareholders being individuals or at least one individual holding at least 10% of issued ordinary shares. Companies principally engaged in investment holding or certain property development activities are excluded. Annual revenue of S$5 million is not a general SUTE eligibility condition.

Example: S$200,000 in normal chargeable income

For a qualifying SUTE company: the first S$100,000 receives S$75,000 of exemption; the next S$100,000 receives S$50,000 of exemption. Remaining taxable amount: S$75,000. Tax before any applicable rebate or other tax adjustments: S$12,750 at 17%. Without SUTE, tax on S$200,000 at 17% would be S$34,000.

Partial Tax Exemption (PTE)

Companies not eligible for SUTE, or beyond their first three qualifying YAs, may generally benefit from PTE: 75% exemption on the first S$10,000 and 50% exemption on the next S$190,000 of normal chargeable income, subject to the applicable rules.

Year of Assessment 2026 corporate tax rebate

For YA 2026, IRAS has announced an enhanced 50% Corporate Income Tax rebate on eligible tax payable, with a combined maximum of S$40,000 when taking the rebate and any applicable cash grant together. Active companies meeting the local-employee condition for 2025 may receive a S$2,000 CIT Rebate Cash Grant. The grant and rebate are coordinated rather than simply added together in every case; IRAS calculates the entitlement based on filed information. Do not confuse the YA 2026 measures with earlier YA 2025 rules.

Tax filing and deadlines

A company generally files its Estimated Chargeable Income (ECI) within three months of its financial year-end unless it qualifies for a waiver or other exception. One common ECI waiver requires annual revenue of S$5 million or less and nil ECI. Corporate income tax returns (Form C-S (Lite), Form C-S or Form C, as applicable) are generally due by 30 November. Eligibility for simplified forms depends on more than revenue alone. A company should also track ACRA annual returns separately from IRAS tax filings.

How Singbac can help

Singbac can help coordinate accounting records, corporate tax filing and ongoing company compliance. Our team can explain what information is needed and help you determine when specialist tax advice is appropriate.

Official sources for editorial verification

• IRAS – rates, YA 2026 rebate and exemptions: https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes
• IRAS – ECI: https://www.iras.gov.sg/taxes/corporate-income-tax/estimated-chargeable-income-%28eci%29-filing