At just 17%, the Singapore corporate tax rate is one of the lowest in the world. That’s part of what makes Singapore such an attractive place to build and grow a business. But the real benefit goes beyond the headline number. The country’s tax system is designed to support entrepreneurship through startup exemptions, partial tax reliefs, and rebates that reward active local companies.
If you’re a founder or SME owner, understanding how IRAS corporate tax rate Singapore works can help you plan smarter and keep more of your profits in your business.
In this guide, you’ll learn:
- How the Singapore corporate tax rate actually works and when it applies
- The main tax exemptions and rebates available for startups and established SMEs
- What’s new for the 2026 tax year and how it affects your filings
TL;DR: Corporate tax Singapore at a glance
- Headline company tax rate in Singapore: 17% on chargeable income.
- Start‑Up Tax Exemption (SUTE): For your first 3 YAs, 75% exemption on the first S$100,000, and 50% on the next S$100,000 of normal chargeable income (certain conditions apply).
- Partial Tax Exemption (PTE): For all other companies, 75% exemption on the first S$10,000 and 50% on the next S$190,000.
- YA 2025 support: 50% CIT Rebate is now granted, capped at S$40,000, and eligible active companies with at least one local (SG/PR) employee (excluding any shareholder-director) in 2024 receive a S$2,000 CIT Rebate Cash Grant. The combined cap is S$40,000.
Tip: Estimate your tax now. Try Sleek’s free Singapore Corporate Tax Calculator.
Skip the confusion.
How the Singapore corporate tax rate works
Understanding corporate tax in Singapore can seem intimidating at first, but once you break it down, it’s actually very straightforward. The system is designed to be simple, transparent, and friendly for both local entrepreneurs and foreign investors. Here’s how it works step by step.
1. The flat 17% corporate tax rate for locals and foreigners
The Singapore corporate tax rate is a flat 17% on your company’s chargeable income. This means every company, big or small, pays the same headline rate. There are no complicated tax brackets or additional surcharges. It’s one of the reasons IRAS corporate tax Singapore remains one of the most business-friendly regimes globally.
Example:
If your company earns S$400,000 in revenue and spends S$250,000 on staff, rent, and marketing, your chargeable income is S$150,000.
Tax @ 17% = S$25,500 (before exemptions and rebates).
2. What is “chargeable income” for company tax Singapore
Chargeable income is the amount left after subtracting all allowable business expenses from your total revenue. You only pay tax on profit earned from running your business, not on total turnover.
Allowable deductions include:
- Staff salaries and CPF contributions
- Office rent, utilities, and business software
- Marketing and advertising expenses
- Professional and accounting fees
These deductions ensure you only pay company tax in Singapore on actual profit, not total turnover.
Expenses that are personal or not directly related to your business cannot be deducted.
3. Tax exemptions in Singapore
This is where Singapore’s tax system truly helps businesses grow. There are two main schemes every company should know:
a) Start-Up Tax Exemption (SUTE) for new companies
For new qualifying companies, the Start-Up Tax Exemption provides major relief during your first three years of assessment:
- 75% exemption on the first S$100,000 of normal chargeable income; and
- 50% exemption on the next S$100,000 of normal chargeable income
This incentive helps new businesses reinvest profits into operations, hiring, or growth instead of paying it out in taxes.
b) Partial Tax Exemption (PTE) for established companies
If your company no longer qualifies as a startup, you’ll still benefit from the Partial Tax Exemption (PTE). This applies automatically every year:
- 75% exemption on the first S$10,000 of normal chargeable income; and
- 50% exemption on the next S$190,000 of normal chargeable income.
This keeps the corporate tax rate in Singapore competitive for small and medium-sized enterprises (SMEs) as they grow.
4. The 2025 Corporate Income Tax Rebate
From the Year of Assessment (YA) 2025, the government introduced an extra boost:
- A 50% Corporate Income Tax (CIT) Rebate, capped at S$40,000.
- A S$2,000 cash grant for active companies that employed at least one local (SG/PR) employee (excluding any shareholder-director) in 2024. The combined cap of rebate + cash grant is S$40,000.
You don’t need to apply separately. The rebate and grant are automatically processed by the IRAS when you file your return. This helps lower your effective corporate tax rate in Singapore even further.
How Sleek helps you leverage the 17% corporate tax Singapore
Singapore has one of the lowest corporate tax rates in the world. You can benefit fully by keeping your records in order, filing your forms on time, and claiming the exemptions you qualify for. This helps you stay compliant and ensures you pay only the right amount of tax.
That’s exactly what Sleek’s Singapore tax advisors help you do.
- All-digital, done right: We file your Corporate Income Tax Return (Form C, Form C-S, or C-S Lite) and keep everything in one secure cloud workspace.
- On time, every time: We plan around the 30 November filing deadline and your financial year end, so you don’t miss submissions.
- Accurate and optimised: Your assigned accountant prepares your numbers, applies the right reliefs and exemptions (SUTE/PTE), and readies your management reports and financial statements.
- Transparent pricing: No surprises. Pick the accounting plan that fits, and add only what you need.
- Real people, real support: Dedicated accountants who answer questions quickly and keep your books up to date.
With Sleek’s tax advisor Singapore handling your corporate tax filing, accuracy and compliance come naturally. We take care of every detail so you can focus on growth, confident that your taxes are in safe hands.
Ready to simplify all the tax-related stuff?
FAQs on Singapore corporate tax rate
What is the Singapore corporate tax rate?
The Singapore corporate tax rate is a flat 17% on chargeable income for both local and foreign companies.
How low can my effective corporate tax in Singapore be as a startup?
If you qualify for the Start-Up Tax Exemption (SUTE), the first S$100,000 of normal chargeable income gets 75% exemption, and the next S$100,000 gets 50% exemption. This lowers your effective corporate tax rate in Singapore on those bands below the 17% headline rate.
Is there a corporate tax rebate for YA 2026?
Yes. For YA 2026, companies get a 50% Corporate Income Tax (CIT) Rebate capped at S$40,000. Active companies with at least one local employee (excluding any shareholder-director) in 2024 also receive a S$2,000 cash grant.
What is “chargeable income” for corporate tax in Singapore?
Chargeable income is your taxable profit after deducting allowable business expenses and applying capital allowances where relevant.
What is the difference between SUTE and PTE in Singapore?
The Start-Up Tax Exemption (SUTE) helps newly incorporated companies reduce their tax burden during their first three Years of Assessment (YAs). Qualifying startups get a 75% exemption on the first S$100,000 of normal chargeable income and 50% exemption on the next S$100,000.
The Partial Tax Exemption (PTE) applies to other companies that don’t qualify for SUTE. It offers a 75% exemption on the first S$10,000 and 50% exemption on the next S$190,000 of normal chargeable income, ensuring established SMEs continue to benefit from a lower effective corporate tax rate in Singapore.
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