The short answer
- Singapore taxes company profits at a flat 17%. The effective rate is much lower on the first S$200,000 because of the exemptions.
- Start-up exemption (first three years of assessment): 75% of the first S$100,000 exempt, 50% of the next S$100,000. It needs at least one individual shareholder holding 10% or more.
- Partial exemption (everyone else): 75% of the first S$10,000, 50% of the next S$190,000.
- For YA2026 the rebate is 50% of tax payable, with a S$2,000 cash grant for companies with a local employee. Rebate and grant together are capped at S$40,000.
- File ECI within three months of the year end unless waived, and the tax return by 30 November.
Singapore's headline corporate tax rate is 17%. Very few small companies pay that much. Two exemption schemes take a large slice off the first S$200,000 of profit, and in most recent years a Budget rebate has cut the bill again. This guide shows how the pieces fit, using figures you can check against your own.
What is taxed
A company is taxed on income sourced in Singapore, and on foreign income received in Singapore. Some foreign income received here is exempt when conditions are met, notably foreign dividends, branch profits and service income that were taxed abroad at a headline rate of at least 15%. Dividends the company pays out are not taxed again in shareholders' hands in Singapore. This is the one-tier system.
The tax year is called the Year of Assessment (YA). YA2026 taxes profits for the financial year that ended in 2025. A company with a 31 March year end files YA2026 on the year to 31 March 2025.
Start-up tax exemption
For each of its first three Years of Assessment, a qualifying new company gets:
- 75% of the first S$100,000 of chargeable income exempt
- 50% of the next S$100,000 exempt
To qualify, the company must meet all of these for each of those years:
- Incorporated in Singapore
- Tax resident in Singapore for that Year of Assessment, which means control and management here
- No more than 20 shareholders throughout the basis period
- All shareholders are individuals holding shares directly in their own names, or at least one individual holds at least 10% of the shares
- Not an investment holding company and not a property developer
The individual-shareholder condition is where group subsidiaries fall out. A company owned 100% by another company has no individual shareholder, so it cannot use the start-up exemption, however new it is. It gets the partial exemption instead.
Partial tax exemption
Every company that does not get the start-up exemption, including those past their first three years, gets:
- 75% of the first S$10,000 of chargeable income exempt
- 50% of the next S$190,000 exempt
The most either scheme can exempt is S$125,000 (start-up) or S$102,500 (partial).
The YA2026 rebate
Budget 2026 announced a rebate of 40% of tax payable for YA2026. On 7 April 2026 the Government raised it to 50%, and raised the accompanying cash grant from S$1,500 to S$2,000. The grant goes to active companies that employed at least one local employee in 2025, generally meaning CPF contributions for someone other than a shareholder-director. The rebate and grant together are capped at S$40,000 per company. IRAS applies the rebate automatically when it assesses the return; there is nothing to claim.
Rebates are announced Budget by Budget. Do not assume YA2027 will have one until it is announced.
Worked example
| Chargeable income S$200,000, YA2026 | Start-up exemption | Partial exemption |
|---|---|---|
| Exempt amount | S$125,000 | S$102,500 |
| Taxable at 17% | S$75,000 | S$97,500 |
| Tax before rebate | S$12,750 | S$16,575 |
| Less 50% rebate | S$6,375 | S$8,287.50 |
| Tax payable | S$6,375 | S$8,287.50 |
| Effective rate on S$200,000 | 3.2% | 4.1% |
A company with a qualifying local employee would also receive the S$2,000 cash grant, paid separately. To run your own figures, use the corporate tax calculator, or the tax computation tool if you are starting from profit in the accounts.
From accounting profit to chargeable income
Chargeable income is not the profit in your accounts. The usual adjustments for a young company are:
- Add back depreciation, fines, private car costs, entertainment that is not for business, and general provisions
- Deduct capital allowances on equipment instead of depreciation. Low-value assets costing S$5,000 or less each can be written off in one year, within an annual cap of S$30,000
- Deduct qualifying pre-commencement costs, and losses brought forward
- Remove non-taxable income, such as a capital gain on selling shares
Unused losses and capital allowances carry forward without time limit, provided the shareholders stay substantially the same (the 50% shareholding test). Up to S$100,000 of current-year losses can be carried back one year to recover tax already paid.
Filing
| Form | Who can use it | Due |
|---|---|---|
| Form C-S (Lite) | Revenue of S$200,000 or less, Singapore company, only income taxable at 17%, no special claims | 30 November |
| Form C-S | Revenue of S$5 million or less, same conditions | 30 November |
| Form C | Everyone else, including companies claiming foreign tax credits or carrying back losses | 30 November |
Before the return, the company files Estimated Chargeable Income within three months of its year end, unless it qualifies for the waiver. See ECI explained.
Payments to non-residents
New companies often forget withholding tax. When a Singapore company pays a non-resident for interest, royalties, or services performed in Singapore, it may have to withhold tax and pay it to IRAS by the 15th of the second month after the payment. The domestic rates are 15% for interest, 10% for royalties and 17% for services rendered in Singapore, often reduced by a tax treaty. Fees for work done entirely outside Singapore are generally not subject to withholding.
Mistakes we see most
- Claiming the start-up exemption for a wholly owned subsidiary. It will be disallowed.
- Wasting the first period. A first financial period of 18 months still counts as one Year of Assessment, so one set of exemption limits covers 18 months of profit.
- Treating the director's personal costs as company costs. They are added back, and may be a taxable benefit for the director.
- Missing withholding tax on a payment to an overseas consultant who visited Singapore to do the work.
Questions people ask
What is Singapore's corporate tax rate?
A flat 17%, reduced by the start-up or partial exemption.
Does an India-owned subsidiary get the start-up exemption?
Usually not. It needs at least one individual shareholder holding 10% or more, so a wholly corporate-owned subsidiary falls under partial exemption instead.
What is the YA2026 corporate income tax rebate?
50% of tax payable, with a S$2,000 cash grant for active companies that employed a local employee in 2025. The rebate and grant together are capped at S$40,000. The rate was raised from 40% on 7 April 2026.
How long does the start-up tax exemption last?
For the company's first three Years of Assessment, provided it meets the conditions in each of those years.
Which tax form does a small company file?
Form C-S (Lite) for revenue of S$200,000 or less, Form C-S for revenue of S$5 million or less, and Form C otherwise, all by 30 November.
Talk it through with an adviser
Tell us your structure and deadlines. We reply with what applies to you and a fixed-fee proposal.
Sources
- IRAS: Corporate income tax rates, exemptions and rebates
- IRAS: Estimated Chargeable Income filing
- EDB: YA2026 corporate tax rebate raised to 50% (April 2026)
- Allen & Gledhill: Enhancements to the CIT rebate and cash grant for YA 2026 (secondary source)
- IRAS: Withholding tax
General information only, last reviewed 11 November 2026. It is not advice for your situation. Laws and practice change, and the official sources linked above prevail. Speak to a qualified adviser before you act. Northwise does not file with Indian authorities; India-side work is done by independent licensed firms.
