Corporate Tax in Singapore
Corporate Tax in Singapore
Updated on Thursday 19th May 2016 Rate this article
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Corporate income tax in Singapore
Foreign companies with operations in Singapore are taxed on the income at the rate of 17%, starting from 2010. Singapore has an attractive taxation system, which offers various tax exemptions. Regardless of the incorporation place, a company is considered tax resident if the business management of the company is set up in Singapore. All companies are required to file for income tax return for the profits received in Singapore; in several cases, foreign earnings can be exempt of income tax and our law firm in Singapore can present to you the situations in which the exemption is applicable.
For a new incorporated company, the government offers a tax exemption for the first $100,000 taxable income, which is applicable in the first three years of activity, if the company meets several conditions:
• the company is incorporated in Singapore;
• the company is a tax resident in Singapore;
• the company has a shareholder who owns at least 10% of the shares;
• the company has a maximum of 20 shareholders.
Corporate income tax rates
Singapore applies three types of taxes for the taxable income. Taxable income of $100,000 is taxed at a 0% rate; in the first three years of activity, taxable income up to $300,000 is taxed at the rate of 8.5% and income which varies between $300,000 and $2,000,000 is taxed at a rate of 17%. After the first three years of tax filings, the corporate income is taxed at the rate of 8.5% for revenues of $0- $300,000, while the reported income of minimum $300,000 and maximum $2,000,000 is taxed at the standard rate of 17%.
If you need further information on the corporate tax legislation, please contact our attorneys in Singapore.