Company Income Tax

A company is taxed on the income earned in the preceding financial year, i.e. income earned in the financial year 2020 will be taxed in 2021. Our tax professionals who are registered as members of the Singapore Institute of Accredited Tax Professionals will be able to help you plan more effective tax strategies.

Singapore follows a single-tier corporate tax system. With effect from YA 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.

Singapore tax schemes to lower tax payable

Tax exemption scheme for new start-up
companies

YA 2020 onwards

75% exemption on the first $100,000 of normal chargeable income; and
A further 50% exemption on the next $100,000 of normal chargeable income.

YA 2010 to 2019

Full exemption on the first $100,000 of normal chargeable income; and
A further 50% exemption on the next $200,000 of normal chargeable income.

Partial tax exemption for all companies

All companies including companies limited by guarantee can enjoy the following tax exemption:

YA 2020 onwards

75% exemption on the first $10,000 of normal chargeable income; and
A further 50% exemption on the next $190,000 of normal chargeable income.

YA 2010 to 2019

75% tax exemption on the first $10,000 of normal chargeable income; and
A further 50% exemption on the next $290,000 of normal chargeable income.

Corporate income tax rebate

All companies will receive a corporate income tax rebate of the following:

25% corporate income tax rebate, capped at $15,000 for YA 2020;
20% corporate income tax rebate, capped at $10,000 for YA 2019;
40% corporate income tax rebate, capped at $15,000 for YA 2018;
50% corporate income tax rebate, capped at $25,000 for YA 2017;
50% corporate income tax rebate, capped at $20,000 for YA 2016; and
30% corporate income tax rebate, capped at $30,000 per YA for YA 2013 to YA 2015.

Tax forms companies must submit every year

All companies need to submit 2 corporate income tax returns to IRAS every year:

Estimated Chargeable Income (ECI): an estimate of the company's taxable income (after deducting tax-allowable expenses) for a Year of Assessment (YA) within three months from the company's financial year-end except for (a) companies that fulfil the conditions under the Administrative Concession; and (b) certain entities that are not required to file ECI
Corporate Income Tax Returns (Form C-S or Form C): a declaration form for companies to declare their actual income. Companies are required to file their Corporate Income Tax Returns by 30 Nov in the year following the financial year.

Consequences for late / non-filing of tax returns

IRAS may take the following actions if companies fail to file Income Tax Returns:

Issue an estimated Notice of Assessment (NOA) and the company must pay the estimated tax within a month
Offer to compound the offence with a composition amount not exceeding $1,000
Issue a Section 65B(3) notice to the director to submit the required information in Corporate Income Tax Returns to IRAS; and/or
Summon the company or person responsible for running the company (including the directors) to Court

For more information, please visit ACRA website or contact us today for a consultation.