The headline tax in Singapore is at 17%.
Singapore has Partial tax exemption scheme for companies as shown below (applicable from YA2020):
Chargeable income for the first $10,000 exempted from tax is at 75% = $7,500
The next chargeable income of $190,000 exempted from tax is at 50% = $95,000 (capped)
Example 1: The chargeable income of the company A: $150,000
| Tax Computation | |
|---|---|
| Chargeable income for the year end | $150,000 |
| Less first tax exemption | ($7,500) |
| Less next $140,000 @ 50% | ($70,000) |
| Chargeable | $72,500 |
| Tax @ 17% | $12,325 |
Total payable for the year ended before corporate income tax (CIT) rebate of 20% (capped at $10,000 in YA2019): $12,325
Less CIT rebate: ($2,465)
Total income tax payable by Company A would be: $9,860
For new start-up companies, tax exemption scheme where any of the first 3 YAs (years of assessment) falls in or after YA 2020:
Chargeable income for the first $100,000 exempted from tax @ 75%
The next chargeable income $100,000 exempted from tax @ 50% (capped)
Example 2: The chargeable income of the new start-up company B: $500,000 YA2019
| Tax Computation | |
|---|---|
| Chargeable income for the year end | $500,000 |
| Less first tax exemption | ($75,000) |
| Less next $100,000 @ 50% | ($50,000) |
| Chargeable | $375,000 |
| Tax @ 17% | $63,750 |
Total tax payable $63,750 assuming no CIT available.
For new start-up companies, tax exemption scheme where any of the first 3 YAs (years of assessment) falls in or before YA 2019:
Chargeable income for the first $100,000 exempted from tax @ 100%
The next chargeable income $200,000 exempted from tax @ 50% (capped)
Example 3: The chargeable income of the new start-up Company C: $500,000 YA2019
| Tax Computation | |
|---|---|
| Chargeable income for the year end | $500,000 |
| Less first tax exemption | ($100,000) |
| Less next $200,000 @ 50% | ($100,000) |
| Chargeable | $300,000 |
| Tax @ 17% | $51,000 |
Total payable for the year ended before corporate income tax (CIT) rebate of 20% (capped at $10,000 in YA2019): $51,000
Less CIT rebate: ($10,000)
Total income tax payable by Company C would be: $41,000