Companies (resident and non-resident) that carry on a business in Singapore are taxed on their Singapore-sourced income when it arises and on foreign-sourced income when it is received in Singapore.

Non-residents are subject to withholding tax (WHT) on certain types of income (e.g. interest, royalties, technical service fees, rental of movable property) where these are deemed to arise in Singapore.

Tax on corporate income is imposed at a flat rate of 17%.

A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies is available.

Partial tax exemption (income taxable at normal rate):

• First 10,000 SGD - Exempt from Tax 75% i.e 7,500 SGD
• Next 190,000 SGD - Exempt from Tax 50% i.e 95,000 SGD
• Total Exempted Income 102,500 SGD

Start-up tax exemption (income taxable at normal rate):

• First 100,000 SGD - Exempt from Tax 75% i.e 75,000 SGD
• Next 100,000 SGD - Exempt from Tax 50% i.e 50,000 SGD
• Total Exempted Income 125,000 SGD

The start-up exemption is not available to property development and investment holding companies.

For income year 2023 (year of assessment 2024), eligible companies will receive a non-taxable CIT rebate cash grant of SGD 2,000. In addition, all companies will be granted a 50% CIT rebate, capped at SGD 40,000 if the company does not qualify for the CIT rebate cash grant or SGD 38,000 if it does.

Singapore adopts a one-tier taxation system, under which all dividends paid by Singapore-resident companies are tax-exempt in the shareholder’s hands.