How corporate tax works in Singapore
Singapore companies are taxed at a flat 17% on chargeable income. The rate applies to both local and foreign companies, and foreign-sourced income received in Singapore can also be taxable unless an exemption applies.
The tax system includes a three-year start-up tax exemption for qualifying new companies, a partial tax exemption for others, and a Budget 2026 corporate income tax rebate for YA 2026. Singapore also applies GST at 9%, withholding tax on certain non-resident payments, CPF for Singapore citizen and permanent resident staff, and a domestic minimum top-up tax for in-scope multinational groups from financial years starting on or after 1 January 2025.
Tax rates at a glance
- Corporate income tax
- 17%Flat rate
- Start-up exemption
- Up to S$125,000
- Partial exemption
- Up to S$102,500
- YA 2026 rebate
- 50%
- GST
- 9%
- Dividend withholding tax
- 0%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Remote foundersHolding companiesInvestorsRegional operatorsHigh earners
Watch out for
- Singapore's 17% headline rate is only the starting point. Start-up exemption, partial exemption and the YA 2026 rebate can materially reduce the cash tax bill for qualifying companies; the combined rebate/cash-grant benefit is capped at S$40,000.
- Companies need to model GST registration, ECI filing within 3 months of financial year end, the corporate tax return due date of 30 November, and withholding tax on certain cross-border payments.
- Large multinational groups should check the domestic top-up tax rules effective for financial years starting on or after 1 January 2025.
Frequently asked questions
Does Singapore have corporate income tax?
Yes. Singapore taxes companies at a flat 17% rate, subject to the start-up exemption, partial tax exemption and any applicable rebates or incentives.
Which businesses pay corporate tax in Singapore?
Singapore resident and non-resident companies carrying on business in Singapore are generally in scope. Foreign income received in Singapore can also be taxable unless an exemption applies.
Is Singapore good for companies?
Often yes, especially for regional founders and holding structures. The main trade-offs are compliance, GST, CPF, withholding tax, substance and the fact that the headline 17% rate is real even if exemptions soften it.