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 their key offerings:
1. Singapore Company Incorporation & Accounting consultants | Bestar
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
Trust and Estate Planning: Assisting with wealth management and 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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