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Last updated at
October 21, 2025
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Book NowThe Inland Revenue Authority of Singapore or IRAS administers the corporate tax on the chargeable income of all local and foreign companies in Singapore at a flat rate of 17 percent. The system provides a range of exemptions and a number of rebates to support the growth of businesses and encourage investment in the country. Companies of all sizes will need to follow the rules of eligibility and the rules of compliance to plan taxes properly and avoid penalties. This blog explains the rates of corporate tax, the exemptions, the filing requirements, and the incentives of corporate tax in Singapore.
In Singapore, the Corporate Tax rate is a flat 17 percent on chargeable income for local and foreign companies and will remain the same regardless of company size or type.
The country follows a single-tier system which means that tax paid by a company will be the final tax on income earned. Dividends distributed to shareholders will not face further taxation. This system simplifies calculations and prevents double taxation on corporate earnings.
This structure will make compliance easier for companies of all sizes and promote transparency in reporting and financial management. Companies will focus on growth and reinvestment knowing corporate tax rules are clear. Understanding these rules will help plan taxes effectively and make full use of exemptions and incentives provided by IRAS.
Singapore will offer a set of exemptions and rebates to support growth of business and attract new investment. A main scheme is the Start-Up Tax Exemption or SUTE which will provide tax relief on the income of a newly incorporated company. Under SUTE a qualifying company will receive:
75% tax exemption on the first S$100,000 of chargeable income
50% tax exemption on the next S$100,000 of chargeable income
This exemption will apply on the first three consecutive Years of Assessment. It will support new businesses and funding for innovation. For the Year of Assessment 2025, a corporate income tax rebate of 50 percent of tax payable will apply up to S$40,000. Companies that employed at least one local worker in 2024 will receive a minimum cash payout of S$2,000 within the same cap for both the rebate and cash grant. These measures will reduce tax liability and allow a business to reinvest more capital in operations or expansion.
All companies in Singapore will file a corporate income tax return for the Year of Assessment 2025 by 30 November 2025. This applies to any company of all sizes even if it was inactive, had no income or reported a loss. Missing the deadline is an offence under the Income Tax Act and will bring penalties up to S$5,000.
The form used will depend on the company profile:
Form C-S (Lite) will be for small businesses with revenue of not more than S$200,000 and only basic income with few deductions.
Form C-S will be for small and medium companies with simple accounts that exceed Lite conditions.
Form C will be for larger businesses or those with more complex financial reporting.
In Singapore, companies will file an Estimated Chargeable Income within three months after the financial year ends. The ECI states taxable profit and allows the Inland Revenue Authority of Singapore to collect part of the corporate tax early. This spreads tax payments across the year and lowers the workload at account closing. For a financial year ending on 31 December 2025, the deadline will fall on 31 March 2026. All companies paying corporate tax must submit the ECI and missing the deadline may bring penalties or interest on unpaid amounts.
Smaller companies with revenue of S$5 million or less and zero ECI may skip filing. This reduces administrative work and lowers compliance costs while keeping filing requirements for companies with significant taxable income.
Singapore offers tax relief to companies in finance, infrastructure, research and technology. These measures push growth in industries that generate jobs, attract investment and keep business activity inside the country. They also give firms a reason to scale operations on local ground instead of shifting them elsewhere.
Income from project debt securities issued on or before 31 December 2025 will be exempt from corporate tax. This move supports large projects that rely on long funding cycles like transport systems, power plants or research facilities. It cuts borrowing costs and helps firms secure capital with less strain.
By using these incentives a company can lower its tax bill, free up cash and put more on operations or expansion. Checking the rules closely is needed so an application will not be rejected.
Companies must keep records of statements, invoices, contracts and receipts. These items prove income and expenses and form the base of a correct tax return.These records must be stored for a minimum of five years as required by law. A company that organises files early will save time when numbers are checked or clarified later.
Accurate records also lower the risk of penalties during an audit. When the figures match the documents, authorities can complete checks faster and with fewer questions. This helps a business avoid disputes and shows that it is meeting its legal duties.
Many firms rely on tax agents or accountants who guide on filing and compliance. Their review of accounts makes errors less likely and gives managers more space to focus on daily operations and growth.
Singapore applies a flat corporate tax rate of 17 percent on chargeable income. A range of rebates and exemptions will ease the load of companies in finance, trade, research and other sectors that drive growth. Every firm will need to follow the filing rules and maintain a full set of records of income and expenses so that the return is accurate. With the use of incentives, a business will cut tax liability, improve cash flow and place capital on projects.
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