wealthbridge TAXATION guideS:

Corporate Tax Guide: Tax Rebates and Exemptions in Singapore

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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: 

Chargeable income Percentage exempted from Tax Amount exempted from Tax
First $100,000 100% up to S$100,000
Next S$200,000 50% up to S$100,000
Total S$300,000 up to S$200,000


Partial tax exemption, on the other hand, is granted at the following rates for YA 2019 and before. 

Chargeable income Percentage exempted from Tax Amount exempted from Tax
First $10,000 75% up to S$7,500
Next S$290,000 50% up to S$145,000
Total S$300,000 up to S$152,500


Then for company’s whose any of their first three years of assessment falls in or after YA 2020, tax exemption scheme rates are: 

Chargeable income Percentage exempted from Tax Amount exempted from Tax
First $100,000 75% up to S$75,000
Next S$100,000 50% up to S$50,000
Total S$200,000 up to S$125,000


The accompanying partial tax exemption scheme for YA 2020 grants is as follows: 

Chargeable income Percentage exempted from Tax Amount exempted from Tax
First $10,000 75% up to S$7,500
Next S$190,000 50% up to S$95,000
Total S$200,000 up to S$102,500


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. 

Year of Assessment (YA) Corporate Income Tax Rebate Capped at
2020 25% $15,000
2019 20% $10,000
2018 40% $15,000
2017 50% $25,000
2016 50% $20,000
2013 to 2015 30% $30,000


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