- Singapore’s corporate tax rate is a flat 17% on chargeable income; no brackets, no surcharges, same rate for local and foreign companies.
- Most startups pay far less than 17% in their first three years. The Start-Up Tax Exemption (SUTE) shields up to S$125,000 of chargeable income per Year of Assessment, bringing the effective rate to as low as 2 to 4%.
- The YA 2025 CIT rebate (50%, capped at S$40,000) is applied automatically by IRAS on filing; no separate application is needed. Eligible active companies also receive a S$2,000 cash grant.
- The headline rate is only part of the story. Understanding the full exemption stack (SUTE, PTE, CIT rebate) is what separates founders who overpay from those who file correctly.
The Singapore corporate tax rate is 17% flat, and it applies to every company operating here regardless of whether the founder is Singaporean or foreign. That is the number you will read everywhere. What most guides skip over is the part that actually matters for founders: after IRAS exemptions and rebates, most Singapore startups in their first three years pay an effective rate closer to 2 to 4% on their chargeable income.
This guide covers how the rate works, what chargeable income means in plain terms, the full exemption stack available to startups and established companies, the 2025 corporate income tax rebate, and exactly what a typical Singapore startup pays after every relief is applied.
Quick answer: Singapore corporate tax at a glance (2026)
| Headline rate | 17% flat on chargeable income |
| Applies to | All Singapore-incorporated companies, local and foreign |
| Startup effective rate (first 3 Years of Assessment) | As low as 2 to 4% after SUTE |
| Max income exempt under SUTE per YA | S$125,000 |
| Max income exempt under PTE per YA | S$102,500 |
| YA 2025 CIT rebate | 50%, capped at S$40,000, auto-applied by IRAS |
| YA 2025 cash grant | S$2,000 for active companies with at least one local employee |
| Corporate tax filing deadline | 30 November (e-filing), per IRAS |
What is the Singapore corporate tax rate?
The Singapore corporate tax rate is a flat 17% on chargeable income, as set by IRAS (the Inland Revenue Authority of Singapore). There are no tax brackets and no surcharges. Every company, whether it was incorporated by a local founder or a foreign national, pays the same headline rate on its taxable profit.
The rate has been stable at 17% since 2010, which means you can plan with certainty. Unlike progressive systems that charge more as income rises, Singapore’s flat structure means the rate itself never changes regardless of how profitable your company becomes. What changes is how much of your income is exempt, which is where the real tax planning happens.
The 17% rate applies to income earned in or derived from Singapore, and in most cases to income remitted to Singapore from overseas. For companies that are not tax-resident in Singapore, the same headline rate applies, but the SUTE and PTE exemptions described below are only available to tax-resident companies. Tax residence in Singapore is determined by where the board’s control and management decisions are made, not where the company is incorporated. If your board meetings are held overseas, speak to a tax adviser about residence status before assuming exemptions apply.
What counts as “chargeable income” for Singapore company tax?
Chargeable income is your company’s taxable profit: total revenue minus all allowable business expenses. The important point is that Singapore taxes profit, not turnover. If you have S$400,000 in revenue but S$250,000 in legitimate business costs, you are taxed on S$150,000, not on S$400,000.
The following categories of expense are allowable deductions under IRAS rules (as of 2026):
- Staff salaries and employers’ CPF contributions
- Office rent, utilities, and business software licences
- Marketing and advertising expenditure
- Professional fees, including accounting, legal, and audit costs
- Business travel and client entertainment that is wholly and exclusively incurred for the business
Expenses that are personal in nature, capital expenditure (such as purchasing office equipment, which is treated separately under capital allowances), or costs not wholly incurred for the purposes of the trade cannot be deducted. For a full breakdown of what IRAS allows, see the guide to allowable business expenses in Singapore.
How much tax does a Singapore startup actually pay?
This is the question that matters most for a founder in the first few years of trading, and the answer is considerably better than the 17% headline suggests. The table below shows the full calculation for our example company in YA 2025.
| Stage | Amount (S$) | Notes |
|---|---|---|
| Revenue | 400,000 | – |
| Allowable expenses | 250,000 | Salaries, CPF, rent, software |
| Chargeable income | 150,000 | Revenue minus expenses |
| SUTE: 75% on first S$100,000 | 75,000 exempt | First tranche, per IRAS 2026 |
| SUTE: 50% on next S$50,000 | 25,000 exempt | Second tranche, per IRAS 2026 |
| Total exempt under SUTE | 100,000 | – |
| Taxable income after SUTE | 50,000 | – |
| Tax at 17% | 8,500 | – |
| YA 2025 CIT rebate at 50% | 4,250 reduction | Capped at S$40,000; full rebate applies here |
| Tax actually payable | 4,250 | Effective rate on chargeable income: approximately 2.8% |
A qualifying startup with S$150,000 in chargeable income pays S$4,250 in corporate tax for YA 2025. That is not a range or an estimate. It is the result of applying IRAS rules exactly as published. The same company without SUTE, paying the full 17% on chargeable income, would owe S$25,500. SUTE saves S$21,250 in this example.
This is why the exemption stack matters far more than the headline rate for any founder in the first three years of trading. The rate is 17%, but the system is built to protect early-stage companies.
What is the Start-Up Tax Exemption (SUTE) and who qualifies?
The Start-Up Tax Exemption gives qualifying new companies a major reduction in corporate tax for their first three Years of Assessment. The relief applies to normal chargeable income, which means ordinary trading profit. It does not apply to Singapore franked dividends or certain one-off capital gains.
The exemption structure, per IRAS (as of 2026):
- 75% exempt on the first S$100,000 of normal chargeable income per YA
- 50% exempt on the next S$100,000 of normal chargeable income per YA
- Maximum exemption per YA: S$125,000
Eligibility conditions, per IRAS:
- The company must be incorporated in Singapore
- The company must be tax-resident in Singapore for that YA
- The company must have no more than 20 shareholders throughout the basis period
- At least one shareholder must be an individual (not a corporate entity) holding a minimum 10% of the issued ordinary shares throughout the basis period
Companies that do not qualify for SUTE: investment holding companies are excluded entirely. Professional services companies where all shareholders are corporate entities also cannot access SUTE. If your company falls into either category, the Partial Tax Exemption (PTE) applies instead and is still valuable. See the section below.
A common question from foreign founders: does holding your Singapore company through a foreign holding company disqualify you from SUTE? Yes, if that holding company is the only shareholder. You need at least one individual shareholder with 10% or more of ordinary shares. If the structure involves a holding company, review SUTE eligibility with a tax adviser before filing.
What is the Partial Tax Exemption (PTE) for established companies?
Once a company has completed its first three Years of Assessment under SUTE, or if it does not qualify for SUTE in the first place, it moves to the Partial Tax Exemption. PTE is granted automatically by IRAS every year. There is no application process and no conditions on shareholder structure.
The PTE rates, per IRAS (as of 2026):
- 75% exempt on the first S$10,000 of normal chargeable income per YA
- 50% exempt on the next S$190,000 of normal chargeable income per YA
- Maximum exemption per YA: S$102,500
PTE provides less relief than SUTE, which is intentional. SUTE is designed to reduce the cost of the riskiest years for a new company. PTE is a permanent baseline that keeps corporate tax competitive for SMEs at all stages.
SUTE vs PTE at a glance
| – | SUTE | PTE |
|---|---|---|
| Who it applies to | Qualifying new companies, first 3 YAs | All other companies, every YA |
| First tranche exempt | 75% on S$100,000 | 75% on S$10,000 |
| Second tranche exempt | 50% on next S$100,000 | 50% on next S$190,000 |
| Max exempt per YA | S$125,000 | S$102,500 |
| Application required | No (automatic on filing) | No (automatic on filing) |
| Eligibility conditions | Yes (shareholder rules apply) | None |
Is there a corporate income tax rebate for YA 2025 and YA 2026?
YA 2025 rebate (confirmed): As announced in Singapore Budget 2025, IRAS grants a 50% Corporate Income Tax rebate for YA 2025, capped at S$40,000. This means if your tax liability before the rebate is S$8,500 (as in our worked example), the rebate reduces it by S$4,250. If your tax liability before the rebate is S$80,000, the rebate is still capped at S$40,000.
In addition, active companies that employed at least one local (Singapore citizen or permanent resident) employee in 2024, excluding any shareholder-director, receive a S$2,000 CIT rebate cash grant. The cash grant is paid regardless of whether the company owes any tax. The combined cap across the rebate and the cash grant is S$40,000.
You do not apply for either. Both are processed automatically by IRAS when you file your corporate tax return. There is nothing to fill in separately and no deadline to meet beyond the standard 30 November e-filing deadline.
YA 2026 rebate (not yet confirmed): No YA 2026 CIT rebate has been announced at the time of writing in May 2026. This page will be updated when IRAS confirms the position post-Budget 2026. Do not assume the YA 2025 rebate rolls over automatically.
How does Singapore’s corporate tax rate compare globally?
Singapore’s 17% rate is competitive among the major business hubs in the Asia-Pacific region and globally. The comparison below uses 2026 headline rates.
| Country | Headline corporate tax rate | Key context |
|---|---|---|
| Singapore | 17% | Plus SUTE and PTE bring effective rate well below headline |
| Hong Kong | 16.5% | Two-tiered: 8.25% on first HK$2 million of profits |
| Australia | 25 to 30% | 25% for base rate entities (most SMEs) |
| United Kingdom | 25% | 19% small profits rate for companies with profits below £50,000 |
| United States | 21% |
Federal rate only; state taxes are additional |
Singapore’s headline rate is not the lowest in this table. Hong Kong’s two-tier structure produces a lower rate for companies with profits under HK$2 million (approximately S$345,000). Above that threshold, Hong Kong reverts to 16.5% with no further exemptions equivalent to SUTE. For a Singapore startup with S$150,000 in chargeable income and SUTE applied, the effective rate of 2.8% is significantly lower than what the same company would pay in Hong Kong.
The structural advantage of Singapore is the depth of the exemption stack in the first three years, combined with a stable and predictable rate thereafter.
How Sleek helps you file corporate tax in Singapore
Filing corporate tax in Singapore means selecting the right form (Form C, Form C-S, or Form C-S Lite depending on your revenue and structure), applying all relevant exemptions, and submitting by 30 November each year. It also means having accurate management accounts and financial statements ready before you file. Sleek’s corporate tax service handles every part of this.
What Sleek does for you:
- Selects the correct form based on your revenue, structure, and prior-year filings
- Applies SUTE or PTE automatically, along with the CIT rebate if you qualify
- Prepares your management accounts and financial statements ahead of filing
- Manages the 30 November deadline against your financial year-end calendar
- Stores all filings and supporting documents in one secure cloud workspace
- Assigns a dedicated accountant who answers questions quickly and keeps your books current year-round
There are no surprises on pricing. You pick the plan that fits your company’s needs and add services as you grow. Sleek’s corporate tax filing starts from S$72 per month.
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FAQs about Singapore corporate tax rate
What is the Singapore corporate tax rate in 2026?
The Singapore corporate tax rate is a flat 17% on chargeable income. This applies to all Singapore-incorporated companies, whether owned by local or foreign founders, and has been unchanged since 2010. There are no tax brackets. A company with S$50,000 in taxable income and a company with S$5 million in taxable income both pay 17% before exemptions.
How low can my effective corporate tax rate be as a Singapore startup?
In your first three Years of Assessment, the Start-Up Tax Exemption (SUTE) exempts 75% of the first S$100,000 and 50% of the next S$100,000 of chargeable income. For a company with S$150,000 in chargeable income with SUTE and the YA 2025 CIT rebate applied, the effective rate is approximately 2.8%. Most qualifying startups pay between 2% and 5% in Years 1 to 3. SUTE eligibility requires incorporation in Singapore, tax residence in Singapore, no more than 20 shareholders, and at least one individual holding 10% or more of ordinary shares.
What is the difference between SUTE and PTE in Singapore?
SUTE applies to qualifying new companies for their first three Years of Assessment and exempts up to S$125,000 of chargeable income per YA (75% on the first S$100,000, then 50% on the next S$100,000). PTE applies to all other companies every year with no eligibility conditions and exempts up to S$102,500 per YA (75% on the first S$10,000, then 50% on the next S$190,000). Both are applied automatically by IRAS when you file. You do not need to claim either separately.
When is the Singapore corporate tax filing deadline?
The e-filing deadline for Form C, Form C-S, and Form C-S Lite is 30 November each year, per IRAS. This covers income from the preceding financial year. There is no automatic extension. A S$200 late filing penalty applies for missing the deadline, and IRAS may issue a Summons for repeated failures. If your financial year end is not 31 December, your filing deadline is still 30 November but your Estimated Chargeable Income (ECI) is due within three months of your financial year end.
Do foreign-owned companies pay the same Singapore corporate tax rate as local companies?
Yes. Singapore does not distinguish between locally owned and foreign-owned companies when applying the corporate tax rate. The 17% rate and the SUTE and PTE exemptions are available to any Singapore-incorporated, tax-resident company regardless of the nationality of its founders or shareholders. The critical question is tax residence, which depends on where control and management of the company is exercised, not where the company is incorporated. If you are planning to register a company in Singapore from overseas, confirm that board-level decisions will be made in Singapore to preserve tax residence and exemption eligibility.
