Corporate income tax in Singapore made simple (2025)

With competitive tax rates, a robust network of tax treaties, and various incentives, it’s no wonder that Singapore is a top destination for businesses. 

In this guide, we will provide an in-depth look at Singapore’s corporate income tax system, covering everything you (Singapore residents and non-residents who carry on a business in Singapore) need to know to stay compliant and maximize your tax efficiency.

1. Introduction to the Singapore Corporate Income Tax

As per the Income Tax Act, Singapore corporate tax operates on a territorial basis. This means companies are taxed only on income earned and received in Singapore or income remitted to Singapore from abroad.

The current corporate tax rate is 17%, the second lowest in the South Asia region (after the Hong Kong tax scheme), making Singapore highly attractive for businesses.

This low tax rate is further enhanced by various exemptions and rebates, allowing businesses to significantly reduce their effective tax burden.

For companies planning to operate in Singapore, understanding these features is essential to take full advantage of the tax regime.

2. Corporate tax rates and taxable income

2.1. Corporate tax tate

Singapore’s standard corporate tax rate is 17%. However, many companies end up paying less due to tax exemptions and rebates.

2.2. Taxable icome

Taxable income refers to the income that is subject to tax. It includes profits from trade, business, or professional activities. Common sources of taxable income include:

• Revenue from goods and services.
• Rental income from property.
• Gains from the disposal of assets, if considered trading income.

2.3. Exemption for foreign-source income

One unique feature of Singapore’s tax system is the exemption for foreign-sourced income.  Foreign income is not taxed unless it is remitted to Singapore. This allows businesses with international operations to optimize their tax obligations.

3. Tax residency and its implications

3.1. What is a Tax-Resident Company?

A company is considered a tax resident in Singapore if its control and management are exercised in Singapore.

For example, if you have a company incorporated in Singapore, manage your company in Singpapore or overseas, and every year, you hold a board meeting where key decisions are made online from other countries or offline for your Singapore, the Singapore company is considered a tax-resident company.

3.2. Implications of tax residency

Being a tax-resident company comes with several advantages.

For example, resident companies can access Singapore’s extensive network of tax treaties, which helps reduce withholding taxes on cross-border transactions.

Additionally, certain foreign-sourced income may qualify for tax exemptions if specific conditions are met.

4. Singapore tax incentives for companies

Companies as a tax resident in Singapore is qualified for a variety of tax incentives available.

2 most popular tax exemption schemes are

4.1. Start-Up Tax Exemption Scheme

Singapore economy is comprised of 99% of small and medium companies and start-ups. They are a vital component of a successful Singapore economy. 

To help them thrive, Singapore allows newly incorporated company qualifies for the tax exemption benefit from this scheme.

For example, if your Singapore company earned a taxable income of 300,000 SGD, you only pay tax for the first 25,000 SGD, the next 50,000 SGD, and the final 100,000 SGD. The tax payable is SGD 29,750

Use our easy-to-use, accurate Singapore corporate tax calculator to check exactly the amount of tax you need to pay.

4.2. Partial Tax Exemption Scheme

In addition to the start-up tax scheme, small and medium companies operating for more than 3 years can earn benefits from the Partial Tax Exemption Scheme

For example, if your Singapore company earned a taxable profit of 300,000 SGD, you only pay tax for the first 10,000 SGD, the next 190,000 SGD, and the final 100,000 SGD. The tax payable is SGD 33,575.

This means that smaller companies often pay a much lower effective tax rate than the headline tax rate of 17%.

4.3. Industry-specific Incentives

Singapore also offers targeted incentives to promote growth in key sectors. Examples include:

• Pioneer Certificate Incentive: Full tax exemption for up to 15 years for pioneering industries.
• Development and Expansion Incentive: Reduced tax rates for companies expanding their operations.
• R&D Tax Incentives: Enhanced deductions for research and development activities.

5. Filing requirements and deadlines

5.1. Annual filing obligations 

Every year, companies must file corporate income tax returns to IRAS at different time periods: the Estimated Chargeable Income and Form C-S/C-S (Lite)/C. The tax payable is calculated in the year of assessment.

1. Filing Estimated Chargeable Income (ECI) within 3 months of the end of the financial year.
2. Submitting the Form C-S/C by 30 November (for paper filing) or 15 December (for e-filing).

5.2. Estimated Chargeable Income (ECI)

What is an ECI?

The ECI is an estimate of your company’s taxable profits for a YA. It needs to be filed within three months from the end of the financial year (i.e. if your financial year ends on 31 December 2024, the ECI has to be filed by 31 March 2025).

Companies who qualify for the ECI filing waiver need not file the ECI. This includes companies who meet both requirements of having an annual revenue of S$5 million and below and whose ECI is nil for the YA. In other words, they should not have any taxable profits (calculated by their annual revenue after deducting tax-allowable expenses).

Do note that the ECI filing waiver is based on self-assessment. Your company’s ECI filing status on IRAS’ website may still reflect ‘Ready to File’ even if you qualify for the waiver. According to IRAS, there is no need to seek confirmation or inform them of the waiver as long as both conditions are met.

How to file ECI?

You must first be authorized by your company to act for its CIT matters via Corppass. Once authorized, log into the MyTax Portal and select the ‘Business Tax’ section. Using Singpass, you can choose to file the ECI  and follow the instructions provided.

If you have filed the ECI, you will typically receive the Notice of Assessment (NOA) within seven days after filing. Note that no NOA will be issued if a nil ECI is filed.

Remember that if you're not sure what to do, you can count on Global Link Asia Consulting to help you file on time

5.3. Form C-S/C-S Lite/C

What is a form C-S/C-S Lite/C?

Form C-S/C-S (Lite)/C is a CIT Return for declaration of your company’s actual income. As compared to the ECI, it goes into much deeper detail of your company’s finances. Taking this into account, companies will also have more time to file these forms. The due date for these forms is on 30 November of the YA.

This means that if you were to close your financial year in 2024, the Form will need to be submitted by 30 November 2025.

The three forms differ in level of complexity and each has a different criteria to determine which form a company has to file, depending on their annual revenue and other conditions. 

Companies with an annual revenue of $5 million and below will use Form C-S, while companies with an annual revenue of $200k or below will use Form C-S (lite).

All other companies that do not meet the above criteria will need to file Form C.

Submission criteria for Form C-S, Form C-S (Lite) and Form C (Image: IRAS)

How to file C-S/C-S Lite/C?

You must first be authorized by your company to act for its CIT matters via Corppass. Once authorized, log into the MyTax Portal and select the ‘Business Tax’ section. Using Singpass, you can choose to file Form C-S/C-S (Lite)/C and follow the instructions provided.

For Form C-S/C-S (Lite)/C submissions, the NOA will be issued by 31 May of the following year. For example, if you file the Form in November 2024, you can expect the NOA by May 2025. Tax payments must be made within one month from the NOA date.

Remember that if you're not sure what to do, you can count on Global Link Asia Consulting to help you file on time

It is crucial to file the CIT return on time, as late filing is considered an offense and may result in penalties or summons. Ensure timely compliance to avoid unnecessary complications.

5.4. Penalties for late filing

Late filing can result in fines ranging from SGD 200 to SGD 1,000, depending on the severity of the delay. In some cases, legal action may also be taken. To avoid these penalties, it’s important to stay on top of deadlines.

6. How can Global Link Asia Consulting help you calculate your company tax and file tax returns?

Whether you’re a start-up or an established corporation, taking the time to understand the tax system can save your business significant costs.

For complex tax matters, consulting a tax professional like Global Link Asia Consulting is highly recommended. 

Simplify your finances with our dedicated accounting for your Singapore company: Online bookkeeping, timely tax filings, and fast expert support at a cost-effective price.

We help hundreds of entrepreneurs who place their trust in us and transfer from another service provider to Global Link Asia Consulting simply for how professional and customer-centric we are.

• Cost-effective tax-accounting services for your Singapore company
• QuickBooks Consulting and Licensing.
• Timely tax filings
• Consultation on how to best tackle Singapore tax treaties and incentives.

7. FAQs about Singapore corporate income tax and tax rate

We offer a comprehensive range of accounting and tax services for Singaporean companies. Our services include:

• Tax Consulting including corporate income tax, GST tax, contractor tax, and more.
• Monthly/Annual Tax Accounting services in accordance with Singapore accounting standards (SFRS).
• QuickBooks Consulting and Licensing.
• Corporate Income Tax Return Preparation
• GST Tax Return Preparation.

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