Corporate Tax

A company, regardless of whether it is a local or a foreign company, will be taxed on its:

1. New Start Up Companies
   To encourage local entrepreneurship, Singapore Government has declared a full tax exemption for newly incorporated companies.
   
   

   Chargeable Income for the first 3 years of assessment	Tax Rate (%)
   First S$100,000	0
   S$100,000 - S$300,000	8.5
   Thereafter, a flat rate of	17

   To qualify for the tax exemption for new start-up companies, the following conditions must be met:
   
   • It is incorporated in Singapore;
   • It is a tax resident of Singapore for that Year of Assessment;
   • It has no more than 20 shareholders throughout the basis period relating to that Year of Assessment;
   • All its shareholders are individuals throughout the basis period relating to that Year of Assessment OR start-up companies with corporate shareholders can qualify for the existing Start-Up Tax Exemption Scheme, provided that there is at least one individual shareholder of minimum 10% shareholding.
2. For Companies that do not qualify

   Chargeable Income	Tax Rate (%)
   First S$10,000	4.5
   Next S$290,000	8.5
   After S$300,000	17