Singapore Corporate Tax Rate in 2026: Rates, Exemptions, and Filing

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. The headline rate is 17%, but Singapore's system of exemptions, rebates, and schemes brings the effective rate much lower for most eligible companies.

This guide breaks down how corporate income tax works in Singapore: who pays it, how to calculate it, what exemptions and rebates are available in 2026, and how to file your return.

What Is the Corporate Income Tax Rate in Singapore?

Singapore's corporate tax rate is a flat 17% on chargeable income. Unlike personal tax, the rate doesn't rise as profits grow. Key features:

• Territorial taxation: only profits earned in Singapore, or foreign income brought into Singapore, are taxed.
• Single-tier system: once the company pays corporate tax, dividends paid to shareholders aren't taxed again.
• No capital gains tax: profits from selling shares or assets aren't taxed (unless treated as trading income).

These rules make Singapore's regime simple and predictable compared with many other countries.

Who Needs to Pay Corporate Income Tax in Singapore?

All companies that earn or receive income in Singapore are subject to corporate income tax, whether locally incorporated or a foreign entity operating here:

• Singapore-incorporated companies: taxed on profits made in or brought into Singapore.
• Foreign companies with a permanent establishment: e.g. a branch, factory, or sales office.
• Foreign companies without a local office but earning Singapore income: e.g. service providers or landlords with rental income.

Resident vs Non-Resident Companies

A company's tax residency isn't where it was incorporated, but where its key business decisions are made. IRAS looks at where the board meets and sets strategy. Decisions made in Singapore make the company a tax resident; decisions made overseas make it non-resident.

Both resident and non-resident companies pay the flat 17% on Singapore income, and both can benefit from the CIT Rebate and Partial Tax Exemption (PTE), which don't require tax residency.

The real gap is narrower: only resident companies can claim the Start-Up Tax Exemption (SUTE) and access Singapore's network of around 100 Double Taxation Agreements; non-resident companies can't claim SUTE and miss out on treaty protection.

How to Calculate Corporate Income Tax in Singapore

Corporate income tax = [Taxable income − (Exemptions + Incentives + Deductions)] × 17%

1. Work out net profit: total income minus business expenses (salaries, rent, utilities, etc.).
2. Adjust for non-deductible items: add back things like fines or personal expenses.
3. Apply exemptions and incentives: SUTE or PTE, plus any Budget rebate.
4. Arrive at chargeable income: the figure after adjustments and exemptions.
5. Apply 17%: multiply chargeable income by 17% for the tax payable.

Worked Example

A start-up with SGD 200,000 chargeable income that qualifies for SUTE and the YA2026 rebate:

• SUTE exemption (75% of first SGD 100,000 + 50% of next SGD 100,000) = −SGD 125,000 → chargeable income SGD 75,000
• Gross tax: SGD 75,000 × 17% = SGD 12,750
• YA2026 CIT Rebate: 50% × SGD 12,750 = SGD 6,375, less the SGD 2,000 cash grant already received = −SGD 4,375
• Net tax payable = SGD 8,375 (vs SGD 34,000 at the headline rate on the full SGD 200,000)

Exemptions and Incentives in 2026

Singapore offers several schemes that lower the effective corporate tax rate. The main ones for 2026:

Start-Up Tax Exemption (SUTE)

SUTE gives new businesses breathing room in their first years by exempting up to SGD 125,000 of profit per YA. For many young companies this means little to no tax in their first three Years of Assessment. To be precise about what that saves: it's SGD 125,000 of income that isn't taxed (at 17%, up to SGD 21,250 in tax saved) not SGD 125,000 off the bill.

Partial Tax Exemption (PTE)

Once past the start-up phase, companies move to the PTE, which exempts up to SGD 102,500 of profit per YA (at 17%, up to about SGD 17,425 in tax saved). This keeps Singapore competitive for SMEs, not just large firms.

Corporate Income Tax (CIT) Rebate

The CIT Rebate was announced in Budget 2026 at 40% of tax payable and enhanced mid-year to 50% (with the cash grant raised to SGD 2,000 and the combined cap to SGD 40,000) to help companies manage cost pressures.

So for YA2026: a 50% rebate on tax payable, capped at SGD 40,000 combined with the cash grant, plus a SGD 2,000 CIT Rebate Cash Grant for active companies with at least one local (CPF-contributing) employee in 2025. It's applied automatically when you file. See our corporate income tax rebate and exemptions guide for a full worked example.

R&D Deductions and the Global Trader Programme

Companies investing in qualifying R&D can claim enhanced deductions, and between 2024 and 2028 can convert up to SGD 100,000 of qualifying costs into a cash payout of up to SGD 20,000, which is useful for pre-profit SMEs. The GTP offers concessionary rates on qualifying trading income for approved trading companies.

How to File Corporate Tax in Singapore in 2026

All companies must file a Corporate Income Tax Return with IRAS for YA2026 unless granted a waiver, even if the company made a loss or was dormant.

• Deadline: 30 November 2026.
• Where: online via myTax Portal using Corppass.
• Estimated Chargeable Income (ECI): file within 3 months of your financial year-end (unless exempt).

After you file, IRAS issues a Notice of Assessment (NOA) with the final tax payable. You then have one month from the date of the NOA to pay via GIRO, internet banking, or other approved methods.

Final Thoughts

At a flat 17% (and far less after SUTE, PTE, and the YA2026 rebate) Singapore's corporate tax regime is a big part of why so many businesses base themselves here. The practical priorities are working out your residency, claiming the exemptions you qualify for, and filing on time.