A company, regardless of whether it is a local or a foreign company, will be taxed on its:
income accruing in or derived from Singapore; or
income received in Singapore from outside Singapore
Income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending in the year preceding the YA.
Singapore Tax Rate
- 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
Qualifying Conditions for Start-Up Companies The tax exemption is open to all new companies except these two types of companies:
• A company whose principal activity is that of investment holding; and
• A company whose principal activity is that of developing properties for sale, investment, or both.
To qualify for tax exemption for start-ups, eligible companies must satisfy these three qualifying conditions:
1. The company must be incorporated in Singapore;
2. The company must be a tax resident in Singapore for that YA;
3. The company must not have more than 20 shareholders throughout the basis period for that YA where:
i. all of the shareholders are individuals “beneficially and directly” holding the shares in their own names; or
ii. at least one shareholder is an individual “beneficially and directly” holding at least 10% of the issued ordinary shares of the company.
- 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
Corporate Tax Filing Deadlines
|Estimated Chargeable Income (ECI)||3 months from Financial Year End|
|Corporate Tax Filing||30 Nov of every year|
If you furnish your company’s ECI within the qualifying period, you can pay your tax in installments. The earlier you furnish your ECI, the higher is the number of installments you get.
To encourage you to e-File, with effect from YA 2008, the number of installments given to those who file ECI electronically is more than that given to those who file ECI using paper ECI Forms
Our Corporate Tax Service Fees
|Filing of Estimated Chargeable Income (ECI)||50 per year|
|Un-audited Accounts – Computation + Filing of Form C||*800 – 2000 per year|
|Audited Accounts – Computation + Filing of Form C||*1500 – 3000 per year|