Tax Exemptions for Companies in Singapore

What are the tax exemptions for new start-up companies?

Under the scheme, qualifying new companies are given the following tax exemption for the first three consecutive YAs where the YA falls in:

YA 2020 onwards

• 75% exemption on the first $100,000 of normal chargeable income; and; a further 50% tax exemption on the next $100,000 of normal chargeable income.

YA 2010 to 2019

• Full exemption on the first $100,000 of normal chargeable income; and a further 50% exemption on the next $200,000 of normal chargeable income.

What is the Partial tax exemption for all companies?

All companies including companies limited by guarantee can enjoy the following tax exemption:

YA 2020 onwards

• 75% exemption on the first $10,000 of normal chargeable income; and a further 50% tax exemption on the next $190,000 of normal chargeable income.

YA 2010 to 2019

• 75% tax exemption on the first $10,000 of normal chargeable income; and a further 50% tax exemption on the next $290,000 of normal chargeable income.

Get the complete picture on your tax filing requirements by consulting our corporate taxation experts.

What is the Corporate Income Tax (CIT) rebate in Singapore?

Corporate income tax rebate is given to all companies to ease business costs and support restructuring by companies and is applicable for YA 2013 to YA 2019.

All companies will receive a corporate income tax rebate of the following:

• 20% corporate income tax rebate, capped at $10,000 for YA 2019;
• 40% corporate income tax rebate, capped at $15,000 for YA 2018;
• 50% corporate income tax rebate, capped at $25,000 for YA 2017;
• 50% corporate income tax rebate, capped at $20,000 for YA 2016; and
• 30% corporate income tax rebate, capped at $30,000 per YA for YA 2013 to YA 2015.

Corporate income tax rebate is computed on the tax payable after deducting tax set-offs (e.g. foreign tax credit).