Corporate Income Tax Rates

Corporate Income Tax Rates | Bestar

Corporate Income Tax Rates

Singapore's Corporate Income Tax Rate

Singapore has a flat corporate income tax rate of 17%. This applies to both local and foreign companies.   

Key Points

• Flat rate: A consistent tax rate for all companies.   
  

• Single-tier tax system: Only the company pays tax; dividends are exempt from further taxation.   
  

• Start-up tax exemption: Newly incorporated companies may qualify for tax exemptions in their first three years.   
  

Tax Reliefs and Exemptions for Companies in Singapore

Singapore offers a robust tax incentive framework to encourage business growth and innovation.

Here are some of the key reliefs and exemptions available:   

General Tax Incentives

• Start-up Tax Exemption: Newly incorporated companies can enjoy tax exemptions for their first three years of operation.   
  

• Partial Tax Exemption: Companies that meet specific criteria can enjoy a partial tax exemption for up to five years.

• Pioneer Tax Incentive: Companies in specific industries with high technological content can apply for tax exemption for up to 15 years.   
  

• Development and Expansion Incentive: Companies can enjoy reduced tax rates on post-pioneer profits.   
  

Research and Development (R&D) Incentives

• 100% tax deduction for qualifying R&D expenses.   
  

• Additional 150% tax deduction for staff costs and consumables related to R&D.   
  

• Enterprise Innovation Scheme (EIS): Offers a 400% tax deduction or allowance for qualifying R&D expenditure, IP registration, and acquisition or licensing of IP rights.   
  

Other Incentives

• Double Tax Deduction for Internationalization (DTDI) Scheme: Encourages companies to expand overseas operations.   
  

• Merger and Acquisition (M&A) Allowance Scheme: Provides tax relief for qualifying M&A transactions.   
  

• Investment Allowance: Allows companies to claim an allowance for capital expenditure on qualifying assets.   
  

• Enterprise Development Grant (EDG): Provides funding support for companies to develop new products and services.   
  

Industry-Specific Incentives

Singapore offers a range of industry-specific incentives to support specific sectors, such as financial services, biomedical sciences, and information technology.   

IRAS Website: For comprehensive information, please visit the IRAS website: https://www.iras.gov.sg/taxes/corporate-income-tax/

For more detailed information, you can refer to the following resources:

• IRAS (Inland Revenue Authority of Singapore):

• Corporate Income Tax Rates: https://www.iras.gov.sg/quick-links/tax-rates/corporate-income-tax-rates

• Basic Guide to Corporate Income Tax for Companies: https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/basic-guide-to-corporate-income-tax-for-companies

How Bestar can Help Your Business

Bestar is a comprehensive business solutions provider offering a wide range of services to support businesses in Singapore. Here's a breakdown of our key offerings:   

1. Singapore Company Incorporation & Accounting consultants | Bestar

bestar-sg.com

Core Services:

• Company Incorporation: Assisting with the formation of new companies in Singapore, including legal and administrative procedures.    1. Singapore Company Incorporation & Accounting consultants | Bestar bestar-sg.com

• Corporate Secretarial Services: Handling statutory compliance, board meetings, and corporate record-keeping.

• Accounting and Bookkeeping: Managing financial records, preparing financial statements, and ensuring compliance with accounting standards.    1. Singapore Company Incorporation & Accounting consultants | Bestar bestar-sg.com

• Tax Services: Providing tax planning, compliance, and advisory services to optimize tax liabilities.    1. Bestar | Singapore Company Registration | Corporate Secretarial | Bookkeeping | corporate secretarial services | 23 New Industrial Road, Singapore www.bestar-sg.com

• Audit and Assurance: Conducting financial audits and providing assurance services to enhance credibility.    1. Singapore Company Incorporation & Accounting consultants | Bestar bestar-sg.com

• Financial Advisory: Offering strategic financial advice, including business valuation, mergers and acquisitions, and risk management.    1. Bestar | Singapore Company Registration | Corporate Secretarial | Bookkeeping | corporate secretarial services | 23 New Industrial Road, Singapore www.bestar-sg.com

• Human Resources: Providing HR consulting, payroll processing, and employment pass applications.    1. Bestar | Singapore Company Registration | Corporate Secretarial | Bookkeeping | corporate secretarial services | 23 New Industrial Road, Singapore www.bestar-sg.com

Additional Services:

• IT Audit and IT Services: Assessing IT systems for vulnerabilities and providing IT solutions.    1. Bestar | Singapore Company Registration | Corporate Secretarial | Bookkeeping | corporate secretarial services | 23 New Industrial Road, Singapore www.bestar-sg.com

• Estate Planning: Assisting with succession planning.

• Liquidation and Winding-Up: Guiding businesses through the liquidation process.    1. Bestar | Singapore Company Registration | Corporate Secretarial | Bookkeeping | corporate secretarial services | 23 New Industrial Road, Singapore www.bestar-sg.com

Benefits of Choosing Bestar:

• Comprehensive Services: Offers a one-stop solution for various business needs.    1. Singapore Company Incorporation & Accounting consultants | Bestar bestar-sg.com

• Expertise: Employs experienced professionals with in-depth industry knowledge.

• Compliance Focus: Ensures adherence to Singapore's regulatory requirements.

• Client-Centric Approach: Prioritizes client satisfaction and delivers tailored solutions.

In essence, Bestar can help businesses of all sizes streamline operations, manage finances effectively, and achieve their growth objectives.

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