Tools/Tax

Corporate tax computation: from profit to tax payable

Start from profit in your accounts. Adjust for non-deductible items, capital allowances, losses and donations, then apply the exemption and the YA2026 rebate.

At least one CPF-paying local employee (not a shareholder-director) in 2025?

Free, no sign-up, nothing stored. General information only; the official rules prevail.

How it works

Tax starts from profit in the accounts, then follows a fixed order. Add back expenses the law does not allow, such as accounting depreciation, fines, private car costs and general provisions. Take out income that is not taxable, such as capital gains. Deduct capital allowances in place of depreciation, then losses brought forward, then donations, which qualify for a 250% deduction until 31 December 2029. The result is chargeable income.

Then apply the exemption, tax the rest at 17%, and deduct the YA2026 rebate: 50% of tax payable. The rebate and the S$2,000 cash grant together are capped at S$40,000, so the rebate is capped at S$38,000 for a company that also receives the grant. These figures reflect the enhancement announced on 7 April 2026. The tool treats all income as one pool, which suits most small companies; the full return separates trade and other income, and carry-forwards are subject to the shareholding test.

Worked example

Profit of S$400,000, with S$35,000 added back, S$20,000 of capital gains removed and S$25,000 of capital allowances: chargeable income is S$390,000. The partial exemption takes off S$102,500, tax at 17% is S$48,875, and the YA2026 rebate of S$24,437.50 brings tax payable to S$24,437.50, an effective rate of 6.11% on accounting profit.

Questions people ask

What is the difference between this and the corporate tax calculator?

The calculator starts from chargeable income. This tool starts from profit in your accounts and works through the adjustments.

What is the YA2026 corporate income tax rebate?

50% of tax payable. The rebate and the S$2,000 cash grant together are capped at S$40,000. This is the enhanced rate announced on 7 April 2026; the Budget in February had set 40% and S$1,500.

Who gets the cash grant?

Companies that were active and employed at least one CPF-paying local employee, other than shareholder-directors, in 2025.

Can losses be carried forward?

Yes, without time limit, subject to the substantial shareholding test.

Sources

Last checked 1 November 2026. General information only, not advice for your situation. Speak to a qualified adviser before you act.