Singapore’s Corporate Tax Rate in 2025: A Beginner’s Guide

If you’re starting or running a business in Singapore, one of the first things you’ll want to know is how much corporate tax you’ll actually pay.

While the official rate is 17%, Singapore’s tax system offers a range of exemptions, rebates, and schemes that can bring the effective tax rate much lower for eligible companies.

In this guide, we’ll break down how corporate income tax works in Singapore, including

✅Who needs to pay corporate tax in Singapore

✅How to calculate it

✅Tax rebates, incentives and exemptions available

✅How to file your corporate tax return.

What Is the Corporate Income Tax Rate in Singapore?

In Singapore, the corporate tax rate is a flat 17% on chargeable income. Unlike personal tax, this rate does not increase as profits grow.

Key features of Singapore’s tax system include:

• Territorial taxation: Only profits earned in Singapore, or foreign income that is brought into Singapore, are taxed.
• Single-tier system: Once the company pays corporate tax, dividends distributed to shareholders are not taxed again.
• No capital gains tax: Profits from selling shares or assets are not subject to tax.

These rules make Singapore’s tax regime simple, predictable, and highly attractive compared with many other countries.

Who Needs to Pay Corporate Income Tax in Singapore?

In Singapore, all companies are subject to corporate income tax if they earn or receive income in the country. This applies whether the company is locally incorporated or a foreign entity operating in Singapore.

The main categories are:

• Singapore-incorporated companies – All resident companies must pay tax on profits made in or brought into Singapore.
• Foreign companies with a permanent establishment – For example, a branch office, factory, or sales office.
• Foreign companies without a permanent office but earning Singapore income – Such as service providers or landlords with rental income.

Residents vs. Non-Resident Companies

In Singapore, a company’s “tax residency” is not where it was incorporated but where key business decisions are made. Inland Revenue Authority of Singapore (IRAS) looks at where the Board of Directors meets and decides on the company’s strategy.

• If those decisions are made in Singapore, your company is considered a tax resident.
• If those decisions are made overseas, your company is a non-resident.

Both resident and non-resident companies pay the flat 17% corporate tax on income earned in Singapore. The real difference lies in the benefits:

• Resident companies can access tax exemptions, rebates, and Singapore’s wide network of double tax treaties, which help reduce or avoid tax on overseas income. They may also get exemptions on certain foreign-sourced dividends and profits.
• Non-resident companies do not usually qualify for these benefits. They are taxed only on income earned in Singapore, but miss out on incentives and treaty protection.

To determine your business tax, follow these steps.

1. Work Out Net Profit

Start with your total income and subtract business expenses such as salaries, rent, utilities, and other operating costs.

2. Adjust for Non-Deductible Items

Some expenses, like fines or personal expenses, cannot be deducted. Adding these back ensures the profit figure is accurate for tax purposes.

3. Apply Exemptions and Incentives

Use schemes such as the Start-Up Tax Exemption scheme, Partial Tax Exemption scheme, or tax rebates announced in the annual Budget to reduce your taxable amount.

4. Arrive at Chargeable Income

This is the profit figure after adjustments and exemptions.

5. Apply the 17% Tax Rate

Multiply your chargeable income by 17% to determine the corporate tax payable.

You can also calculate your gross tax payable and effective tax rate using this free tax calculator.

Exemptions and Incentives in Singapore in 2025

Singapore companies benefit from a number of schemes that help reduce their corporate tax bill. Here are the main ones available in 2025.

Start-Up Tax Exemption (SUTE)

SUTE is designed to give new businesses breathing room in their first years. By exempting up to $125,000 of profits per year, start-ups can reinvest more into operations, hiring, or marketing rather than losing cash to taxes. For many young companies, this means paying little to no tax in their first 3 Year of Assessment (YA).

Partial Tax Exemption (PTE)

Once a company moves beyond the start-up phase, the PTE ensures ongoing relief. It exempts up to $102,500 of profits each year, effectively lowering the tax bill for small and medium-sized companies. This keeps Singapore competitive for SMEs, not just large corporations.

Corporate Income Tax (CIT) Rebate 2025

Announced in Budget 2025, this one-off rebate helps businesses with cash flow. All companies get a 50% cut in their tax bill (up to $40,000). For smaller firms, the $2,000 cash grant guarantees a benefit even if they owe little or no tax, provided they employ at least one local staff member. This support is especially valuable for SMEs managing tight margins.

R&D Deductions

Singapore rewards innovation. Companies that invest in developing new products, processes, or technologies can claim enhanced deductions on R&D expenses. Between 2024 and 2028, firms can also convert up to $100,000 of qualifying costs into a cash payout of up to $20,000 — useful for SMEs that don’t yet generate big profits but still want to innovate.

Global Trader Programme (GTP)

For companies engaged in international trade, the GTP offers concessionary tax rates on qualifying trading income. This strengthens Singapore’s position as a hub for regional headquarters and trading companies, encouraging businesses to base their global operations here.

Filing Corporate Tax in Singapore in 2025

All companies in Singapore must file a Corporate Income Tax Return with IRAS for the Year of Assessment 2025 unless a waiver has been granted. This applies even if your company made a loss or was dormant.

• Filing opens: 5 May 2025
• Deadline: 30 November 2025
• Where to file: Online via myTax Portal using Corppass.

Forms to Use

For more details, see IRAS’s official guide on Form C-S/ Form C-S (Lite)/ Form C.

Once you file, IRAS will issue a Notice of Assessment (NOA) showing the final tax payable. Your company then has 1 month from the NOA due date to make payment via GIRO, internet banking, or other approved methods.

Final Thoughts

With a corporate tax rate of 17%, Singapore has become a highly sought-after destination for businesses. Thanks to its competitive tax rate and stable business environment, numerous international corporations and business owners have opted to establish or launch operations in Singapore.

If you are planning to move your business to Singapore, we recommend looking at some local business accounts to manage your business operations. At Statrys, we offer multi-currency business accounts for companies incorporated in Singapore, Hong Kong, and the British Virgin Islands (BVI).