Corporate Income Tax in Singapore

CIT Taxpayers

The Inland Revenue Ordinance of Singapore stipulates that CIT taxpayers refer to companies that generate income through business operations in Singapore, including:

• A business entity established in accordance with the Singapore Companies Act or other valid laws and whose name contains "private limited" or "limited"
• A foreign company that has established a branch in Singapore; and
• A foreign company that is not registered in Singapore but has income derived from Singapore

Note: Sole proprietorships and partnerships are not CIT taxpayers in Singapore.

Scope of Charge

The taxable income for CIT includes:

• Income generated in or derived from Singapore; and
• Foreign income received in Singapore (except for specific income eligible for tax reliefs)

Tax Rate

The CIT rate is 17%, and both local and foreign enterprises are subject to the same rate.

Filing Types and Time

Singaporean companies are required to file CIT with the IRAS twice a year: the Estimated Chargeable Income (ECI) and the annual CIT (Form C).

Filing Types	Filing Due Date
Estimated Chargeable Income (ECI)	Within 3 months after the company's fiscal year end (except for enterprises exempted from ECI filing)
Annual CIT (Form C)	30 November every year

Tax Preferences

• Newly-established companies are entitled to exemptions for taxable income for the first 3 taxable years, and all companies enjoy partial exemptions.

  Country	Singapore
  Tax Rate	17%
  Tax Preferences	Types of Companies	Newly-established companies in the first 3 taxable years	All companies (partial exemptions)
  	Taxable Income (SGD)	First 100,000: 75% exempted	First 10,000: 75% exempted
  		Next 100,000: 50% exempted	Next 190,000: 50% exempted
  	Maximum exemption (SGD)	125,000	102,500

• In addition to the direct exemptions mentioned above, enterprises can also enjoy the following tax preferences:
  • Enterprise Innovation Scheme (EIS): applicable from YA2024 to YA2028;
  • Corporate Volunteer Scheme; and
  • Double Tax Deduction for Internationalisation Scheme.
• Enterprises can also deduct before tax non-capital expenditures that are entirely and specifically used to generate income.

Tax Reliefs on Foreign Income

• The following incomes received by a Singapore company from abroad may be exempted when certain conditions are met:
  • Dividends derived from overseas
  • Profits from overseas branches; and
  • Service fee income derived from overseas
• In order to apply for the tax reliefs, the following 3 conditions must be met:
  • The income generated overseas has been taxed in the foreign jurisdiction (referred to as the "taxable" condition)
  • The highest corporate tax rate (foreign overall tax rate condition) of the jurisdiction is not less than 15%, while the highest tax rate does not necessarily have to be the same as the actual collected tax rate; and
  • The IRAS believes that the exemption will be beneficial to Singapore tax residents

Should you have any enquires about Corporate Income Tax in Singapore, please complete the form below and we will reply to you soon.