Singapore corporate income tax exemptions and rebates made simple (2025)

Navigating taxes can be challenging, but understanding tax rebates and exemptions available for your company in Singapore is key to smart financial planning.

In 2025, Singapore’s corporate tax system is packed with opportunities, offering tax breaks and incentives to help businesses thrive and grow.

This guide explains the essentials—how corporate tax exemptions work, the current tax rates, and the specific schemes and rebates that can give your business a financial edge in Singapore.

1. What are the corporate tax exemptions available in Singapore?

1.1. Overview of Corporate Tax Exemption Schemes

Singapore's corporate tax framework offers several powerful tax exemption schemes that provide significant relief to businesses. 

These schemes aim to lower costs, encourage investment, and fuel economic growth. 

The primary corporate tax exemption schemes include the Partial Tax Exemption Scheme (PTE)  and the Start-Up Tax Exemption Scheme (SUTE).

Both are particularly beneficial for new and small to medium enterprises (SMEs), allowing them to retain more income for reinvestment and growth.

Your business can set a strong foundation for long-term success by taking advantage of these exemptions.

1.2. Eligibility criteria for tax exemptions

To qualify for corporate tax exemptions in Singapore, businesses must meet specific eligibility criteria outlined in the Income Tax Act of 1947.

These requirements are:

• The company is incorporated in Singapore with ACRA;
• The company is a tax resident in Singapore for the examined year of assessment;
• The income must come from Singapore-based sources or foreign income brought into Singapore;
• The company must have core income-generating activities (CIGA).

For the start-up tax exemption scheme, not all new start-up companies qualify for Singapore's start-up tax exemption scheme. Exclusions apply to:

1. Companies primarily engaged in investment holding.
2. Companies involved in property development for sale, investment, or both.

To qualify, the company must:

• Be incorporated in Singapore;
• Be a tax resident in Singapore for the relevant Year of Assessment (YA);
• Have no more than 20 shareholders, where:
  • All shareholders are individuals, or;
  • At least one individual owns 10% or more of the issued ordinary shares.

These rules ensure targeted support for genuine business activities and for the vast majority of small and medium business owners in Singapore which make up 99% of the business landscape.

1.3. Types of tax exemptions for companies

Singapore offers two key corporate tax exemptions to help businesses save on taxes:

1. Partial Tax Exemption Scheme: For the Year of Assessment 2020 onwards, all companies (including companies limited by guarantee ) get a full tax exemption on the first SGD 10,000 of chargeable income and a 50% exemption on the next SGD 190,000.
2. Start-Up Tax Exemption Scheme: or the Year of Assessment 2020 onwards, qualifying new companies can enjoy tax exemptions on up to SGD 100,000 of chargeable income for their first three consecutive years.

2. How to claim tax rebates in Singapore?

2.1. Overview of the CIT Rebates 2025

In addition to tax exemptions, you can benefit from the CIT rebates that further reduce your tax liability.

To support businesses facing rising costs, the Budget 2024 introduced a 50% CIT Rebate for all tax-paying companies, whether tax residents or not, for YA 2024. 

• CIT Rebate: Companies will receive a 50% rebate on their corporate tax payable, capped at $40,000.
• CIT Rebate Cash Grant: If a company employs at least one local employee in 2023 (meeting the "local employee condition"), it will receive a $2,000 cash grant. This means companies that meet this condition will get a minimum benefit of $2,000.

2.2. How to know if your company qualifies for the CIT Rebate?

• If the CIT Rebate is ≤ $2,000: No CIT Rebate is granted.
• If the CIT Rebate is> $2,000, the rebate is capped at $40,000, but the $2,000 cash grant is subtracted from the total rebate.

To qualify for the CIT Rebate Cash Grant, a company must meet the local employee condition, which means the company has made CPF contributions to at least one local employee (Singapore Citizen or Permanent Resident) in 2023. This does not include shareholders who are also directors.

The grant will be automatically provided to eligible companies by 25 August 2024, including registered business trusts and variable-capital companies that meet the condition.

2.3. How to claim the CIT Rebates?

IRAS automatically calculates the CIT Rebate based on the company’s Form C-S/ Form C-S (Lite)/ Form C submitted. The CIT Rebate will not be included if a company’s Estimated Chargeable Income (ECI) has been assessed. If the tax assessment has already been finalized, IRAS will issue an amended notice by 31 August 2024.

3. What is the difference between a Singapore CIT rebate and CIT exemptions?

In Singapore, Corporate Income Tax (rebates and exemptions are both designed to help businesses pay less tax to use the profits for reinvestment. Howerver, they work in different ways. 

The table below will clarify the difference between these 2 tax reliefs.

4. How can Global Link Asia Consulting help you apply for your Singapore-incorporated company’s tax exemption?

With 10 years of experience as an expert in company formation in Singapore, helping hundreds of local nad foreign entrepreneurs thrive in the Lion City, we know what business owners need to grow sustainably.

Applying for Singapore’s start-up and partial tax exemption is simple. 

Here’s what you need to do:

1. Apply to the Inland Revenue Authority of Singapore (IRAS).
2. Provide supporting documents, including:
   • Proof of incorporation.
   • Shareholder details.
   • Financial statements showing the company’s income.

Ensure all information is accurate and complete to avoid delays. Once approved, the exemption will appear in your tax assessment, offering immediate savings for your business!

If you are new to the Singapore business landscape and already have a strategic plan to do business here, we offer the following support as your trusted expert partner:

• Register a company in Singapore;
• Open a corporate bank account in Singapore with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

5. FAQs about Singapore company tax exemptions and tax rebates

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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