There’s no denying that Singapore’s corporate income tax rate of 17% is one of the lowest in the world.
And you know what? The benefits don’t end there. In addition to friendly tax rates, the government of Singapore offers companies various reliefs in the form of tax rebates and tax exemptions.
Yes, that’s right. The Inland Revenue Authority of Singapore (IRAS) reduces your tax bill based on your company’s chargeable income amount and business status.
Corporate Income Tax Exemption Schemes
Since 2013, new startup companies in Singapore have enjoyed tax exemptions for various years of assessment (YA) as follows:
In case any of your company’s first three years of assessment falls in or before YA 2019, you get to enjoy the following tax exemption scheme:
Partial tax exemption, on the other hand, is granted at the following rates for YA 2019 and before.
Then for company’s whose any of their first three years of assessment falls in or after YA 2020, tax exemption scheme rates are:
The accompanying partial tax exemption scheme for YA 2020 grants is as follows:
Corporate Income Tax (CIT) Rebate for YAs 2013 to 2020
As for the tax rebates, here’s a table that summarizes the applicable rates since YA 2013, plus their corresponding cap amounts.
If you ever need help in filing taxes and doing the accounting, don't hesitate to check our corporate services.