APEX GATEWAY · CORPORATE TAX · YA 2026
Corporate Income Tax in Singapore
From accounting profit to tax payable: understand your exemptions, prepare the right computation and file with a clear view of the deadline.
Corporate Income Tax in Singapore
YA 2026 and your financial year
Tax is normally assessed on the preceding financial year’s income. For a 31 December 2025 year end, the usual basis period is 1 January–31 December 2025. A long first accounting period may cover more than one YA.
Income Tax rates
| Type of Income | Tax Rate |
|---|---|
| Normal taxable company income | 17% |
| Income qualifying for a statutory exemption | Exempt portion is not taxed; eligibility required |
| Approved incentive income | Approved rate and conditions, not automatic |
What counts as “chargeable income” for Singapore company tax?
Accounting profit is the starting point
Tax adjustments remove exempt or non-taxable receipts, add back disallowed expenses and depreciation, and deduct qualifying allowances and reliefs. Turnover is not chargeable income.
Prepare a reconciliation
Keep financial statements, ledgers, expense and fixed-asset schedules, prior-year loss balances and foreign-tax documents. Apply SUTE/PTE to the relevant normal chargeable income after the applicable adjustments.
How much tax does a Singapore startup actually pay?
| Normal chargeable income | Tax after SUTE | Tax after PTE |
|---|---|---|
| S$100,000 | S$4,250 | S$8,075 |
| S$200,000 | S$12,750 | S$16,575 |
| S$300,000 | S$29,750 | S$33,575 |
Illustrative YA 2026 amounts before CIT rebate and tax credits, assuming the company qualifies for the selected exemption. At S$100,000, SUTE gives S$4,250 tax before rebate. With no cash-grant entitlement or other credits, the 50% rebate reduces this to S$2,125. Cash-grant recipients must account for the grant separately.
What is the Start-Up Tax Exemption (SUTE) and who qualifies?
Exemption bands
First S$100,000: 75% exempt. Next S$100,000: 50% exempt. Maximum normal-income exemption: S$125,000 per qualifying YA.
Who qualifies?
Singapore-incorporated and tax resident for the YA; all share capital must be directly beneficially held by no more than 20 shareholders throughout the basis period, with all individuals or at least one individual holding at least 10% of issued ordinary shares.
First three YAs and excluded companiesExpand
Applies only to the first three consecutive YAs, even where a YA has no income or a loss. Investment-holding companies and property developers are excluded. Foreign branches cannot use SUTE; PTE may apply instead.
Start-up vs partial tax exemptions: comparison
SUTE · Start-Up Tax Exemption
An exemption scheme for qualifying new companies in their first three consecutive Years of Assessment.
PTE · Partial Tax Exemption
A partial exemption of normal chargeable income for qualifying companies; it is not limited to their first three YAs.
Partial Tax Exemption (PTE)
75% exemption on the first S$10,000 and 50% on the next S$190,000 of normal chargeable income. Maximum exemption S$102,500. Established companies can use PTE where applicable; it is not restricted to older companies.
| Feature | Start-Up Tax Exemption (SUTE) | Partial Tax Exemption (PTE) |
|---|---|---|
| Relevant period | First three consecutive YAs | No three-YA restriction |
| First exemption band | 75% × S$100,000 | 75% × S$10,000 |
| Second exemption band | 50% × S$100,000 | 50% × S$190,000 |
| Maximum exempt income | S$125,000 | S$102,500 |
| Both on the same income? | No | Alternative scheme |
Is there a corporate income tax rebate for YA 2025 and YA 2026?
Tax rebates · YA 2025 & YA 2026
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| YA | Rebate | Maximum total benefit | Eligible cash grant |
|---|---|---|---|
| 2025 | 50% | S$40,000 | S$2,000 |
| 2026 (enhanced) | 50% | S$40,000 | S$2,000 |
YA 2026 cash grant and rebate: avoid double countingExpand
For an eligible grant recipient, incremental rebate is max(0, min(50% of the relevant tax payable, S$40,000) − S$2,000). Non-grant recipients receive the capped rebate directly. YA 2026 local-employee eligibility generally requires CPF for at least one citizen/PR employee in 2025, excluding shareholder-directors, and active-company status at disbursement.
YA 2025 and future YAsExpand
YA 2025 used its own local-employee reference year, generally 2024. Do not automatically extend the YA 2026 rebate or grant to YA 2027; use the relevant announced measures for that YA.
How does Singapore’s corporate tax rate compare globally?
SG · China · Vietnam · India · US · Indonesia · Malaysia
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| Jurisdiction | Headline rate / regime | Key content |
|---|---|---|
| Singapore | 17% | SUTE/PTE reduce eligible normal chargeable income; YA 2026 rebate is separate. Large in-scope MNEs must also consider top-up tax. |
| China | 25% | Qualifying high-tech enterprises may use 15%; eligible small low-profit enterprises have a separate effective concession through 2027. |
| Vietnam | 20% | Under the new CIT law, qualifying annual revenue up to VND3bn may use 15%; over VND3bn to VND50bn may use 17%. Eligibility and exclusions matter. |
| India | 22% / 25% / 30% | Domestic-company rates depend on the elected regime and conditions. Section 115BAA: 22% before surcharge and cess (25.168% including 10% surcharge and 4% cess); specified deductions are forgone. |
| United States | 21% federal | Federal C-corporation rate. State/local taxes may add to the burden; pass-through entities are not assessed on this same basis. |
| Indonesia | 22% | Qualifying smaller businesses may receive turnover-based concessions or Article 31E relief. The 0.5% scheme has eligibility and duration restrictions and is not a general corporate profit rate. |
| Malaysia | 24% | Eligible smaller companies: 15% on first RM150,000, 17% to RM600,000, then 24%; capital, revenue and ownership conditions apply. |
Current officially published rate frameworks checked in October 2026. Countries use different tax years, bases and incentives. These are not directly comparable effective rates; VAT/GST, state taxes and Pillar Two rules require separate review.
How Apex Gateway helps you file corporate tax in Singapore
Review and organise
Review financial statements, income sources, expenses and asset schedules; identify information needed for the tax computation.
Compute and select the return
Assess SUTE/PTE, deductions and loss items, prepare a computation and determine the appropriate ECI and annual-return route.
Authorised filing support
Assist with submission after authorisation, review the assessment and help organise responses to IRAS requests. The final tax outcome depends on the records and applicable rules.
Filing income tax returns
ECI, annual return & required records
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ECI · within three months
File Estimated Chargeable Income within three months of the financial year end, unless waived. The usual waiver requires annual revenue no more than S$5 million and nil ECI. ECI is before SUTE/PTE exempt amounts.
Annual return · 30 November 2026
YA 2026 Form C-S, C-S (Lite) or C is due on 30 November 2026. ECI filing does not replace the annual return. A dormant company generally still files unless IRAS grants a filing waiver.
Which annual return and documents?Expand
C-S: qualifying Singapore-incorporated companies with revenue ≤S$5m. C-S (Lite): qualifying C-S companies with revenue ≤S$200,000. Other conditions include normal-rate income and no specified claims such as group relief or foreign tax credit. Otherwise use Form C. Keep statements and computation; Form C requires supporting documents.
Taxes on employer benefits
Staff costs and benefit reporting
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Company deduction and employee tax are separate
Salary and qualifying business-related staff costs may be deductible for the company. Benefits such as accommodation or employer-paid personal tax may also be taxable to the employee.
Report the correct benefits
Reconcile payroll and non-payroll benefits, IR8A/AIS and Appendix 8A/8B where required. Employee exemptions do not automatically determine the company’s deduction.
What is Taxable & Non-Taxable Income?
Taxable & non-taxable income breakdown
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Common taxable income
| Income type | Tax treatment |
|---|---|
| Sales and service receipts | Trade or business profits are generally taxable. |
| Interest, rent and royalties | Generally taxable unless a specific exemption applies. |
| Revenue-type grants or receipts | Check the nature of the receipt and scheme-specific exemption. |
| Foreign income received in Singapore | Check receipt rules, exemptions and foreign tax credits. |
Common exempt or non-taxable receipts
| Receipt | Key condition |
|---|---|
| One-tier dividends | Qualifying Singapore resident-company dividends are generally exempt. |
| Specified foreign income | Exemption conditions must be met; overseas receipts are not automatically exempt. |
| Capital receipts or gains | Classification matters; trading gains and some foreign disposal gains may be taxable. |
| Specifically exempt payments | For example, qualifying Enterprise Innovation Scheme cash payouts; check the relevant scheme. |
Identify the income source and nature before preparing the tax computation. Non-taxable receipts should be reconciled rather than omitted from accounting records.
One-tier dividendsExpand
Singapore resident-company dividends under the one-tier system are generally exempt in the shareholder’s hands. Dividend distributions are not a deductible company expense. This does not exempt all operating income.
Capital receipts and disposal gainsExpand
Distinguish capital from trading receipts; not every disposal gain is exempt. Foreign-sourced disposal gains received in Singapore can fall within Section 10L, subject to entity and economic-substance rules.
Tax reliefs, rebates, and deductions
Tax reliefs · foreign income & one-tier system
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Certain foreign-sourced incomeExpand
Resident companies may exempt qualifying foreign dividends, branch profits and service income when the subject-to-tax, foreign headline rate of at least 15%, and beneficial-exemption conditions are met. This is not a blanket exemption of overseas receipts.
One-tier dividendsExpand
Singapore resident-company dividends under the one-tier system are generally exempt in the shareholder’s hands. Dividend distributions are not a deductible company expense. This does not exempt all operating income.
Capital receipts and disposal gainsExpand
Distinguish capital from trading receipts; not every disposal gain is exempt. Foreign-sourced disposal gains received in Singapore can fall within Section 10L, subject to entity and economic-substance rules.
What is Deductible & Non-Deductible Business Expenses?
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All examples from the IRAS Business Expenses comparison table, in source order. Eligibility, timing and special deduction rules still apply. Source checked: 13 October 2026; IRAS last updated: 30 September 2026.
Calculation example: income S$80,000; expenses S$15,000, comprising S$5,000 deductible and S$10,000 non-deductible. Taxable income is S$75,000 (S$80,000 − S$5,000).
Expense examples A–F
| Deductible — subject to conditions | Non-deductible as ordinary business expenses |
|---|---|
| Accounting fee Administrative expenses Advertisement Audit fees | Amortisation |
Bad debts (trade debtors) Bank charges Book-keeping services Borrowing costs as a substitute for interest expense or to reduce interest costs | Bad debts (non-trade debtors) |
Commission Compensation / damages (revenue in nature) Contributions to mandatory overseas pension or provident fund CPF-related Skills development levy Top-ups to employees' CPF accounts on their behalf:
Voluntary cash contributions to self-employed persons' MediSave Accounts Top-ups to platform workers' CPF accounts on their behalf:
| Certificate of entitlement (COE) for motor vehicles Compensation / damages (capital in nature) Contributions to non-mandatory overseas pension or provident fund CPF-related Top-ups to employees’ CPF MediSave Accounts on their behalf (before 1 Jan 2026) Top-ups to platform workers' CPF accounts on their behalf:
|
Digital taxes imposed in the form of turnover taxes (not income taxes) Directors' fees Directors' remuneration | Depreciation (you may instead claim capital allowances) Digital taxes imposed as income taxes |
Employee Equity-Based Remuneration (EEBR) Scheme Employment Assistance Payment (EAP) Entertainment Exchange loss (trade and revenue in nature) Exhibition expenses | Entrance fee (country club or other clubs) |
Foreign worker levy (FWL) (only the reduced FWL incurred by your company, after deducting the FWL rebate for the corresponding period, is allowed tax deduction) Non-statutory fines / penalties | Fixed assets acquisition cost (you may instead claim capital allowances) Fixed assets written off Statutory fines / penalties |
Expense examples G–L
| Deductible — subject to conditions | Non-deductible as ordinary business expenses |
|---|---|
Income tax of employee borne by employer (in accordance with employment contract) Insurance for underwriting bad trade debts Interest expenses Interest incurred on late payment of fees to a Management Corporation for a Strata Title Plan (MCST) Interest incurred on loans to re-finance prior loans or borrowings | Impairment loss on non-trade debts Singapore income tax and any tax on income in country/ territory outside Singapore Installation of fixed assets Interest expenses on non-income producing assets (interest adjustment) |
Legal and professional fees (trade and revenue transactions) License / software renewal costs Losses through theft or burglary in business premises (revenue in nature and incidental to the business) Losses through embezzlement / unauthorised transactions (employee does not have overriding power or control and company has put in place a sufficient system of checks and balances) | Legal and professional fees (non-trade or capital transactions) License / software set up costs Losses through theft or burglary in business premises (capital in nature) Losses through embezzlement / unauthorised transactions (employee has overriding power or control and the company did not put in place a sufficient system of checks and balances) |
Expense examples M–R
| Deductible — subject to conditions | Non-deductible as ordinary business expenses |
|---|---|
Medical expenses (restricted to 1%/ 2% of total remuneration if company is under Portable Medical Benefits Scheme (PMBS) or Transferable Medical Insurance Scheme (TMIS)) Motor vehicle expenses (such as upkeep, maintenance, running and financing costs of goods/ commercial vehicles e.g. van, lorry and bus) | Medical expenses (amount exceeding 1%/ 2% of total remuneration if company is under PMBS or TMIS) Motor vehicle expenses (S-plated, Q-plated and RU-plated cars) |
| Office upkeep | — |
Additional Petrol Duty Rebate (Budget 2021) Payments for related party services Periodicals and newspapers Postage Printing and stationery Property tax Provision for bad and doubtful debts (specific) Provision for obsolete stocks (specific) | Prayer expenses Prepaid expenses (not relating to the relevant basis period) Private and domestic expenses (expenses not incurred for business purpose) Provision for bad and doubtful debts (general) Provision for obsolete stocks (general) |
Reimbursement to employees for transport expenses (for business purpose, including for overtime transport) Reinstatement costs (expenses incurred to reinstate premises to its original condition prior to vacating it at the end of the tenancy agreement) Registration of patents, trademarks, designs and plant varieties Upfront rental expenses incurred by tenants (commission, advertising, legal fees and stamp duty incurred in obtaining, renewing or extending leases), subject to Section 14ZE of the Income Tax Act 1947 Repairs and maintenance Retrenchment payments Ex-gratia retrenchment payments and outplacement support costs, where there is no complete cessation of business Road tax rebate (Budget 2021) | Reimbursement to employees for transport expenses (not for business purpose; travel between home and office for ordinary personal commuting) Renovation or refurbishment works (you may claim Section 14N deduction for qualifying expenditure) Retrenchment payments |
Expense examples S–Z
| Deductible — subject to conditions | Non-deductible as ordinary business expenses |
|---|---|
Secretarial fees Sponsorship (in-kind or in cash as a genuine commercial transaction carried out in the normal course of the sponsor's business, and the expense is not private / capital in nature or otherwise disallowed in the Income Tax Act) Staff remunerations (salary, bonus and allowances) Staff training Staff welfare/ benefits Statutory and Regulatory expenses Stock obsolescence | — |
Tax fees (service fees paid to tax agent) Telephone bills Transport (public transport and goods/ commercial vehicles) Travelling | Transport (S-plated, Q-plated and RU-plated cars) |
Wages Water and electricity Withholding tax that the company is contractually obligated to incur | Withholding tax on interest payments borne by companies on-behalf of non-residents Withholding tax that the company voluntarily incurs |
Important conditions and footnotes
- For eligible commercial vehicles, the vehicle’s Capital Allowances cost can include its Certificate of Entitlement cost.
- The 2021 additional petrol duty rebate entry refers to taxi/private-hire operators paying government rebates to eligible active drivers. The road tax rebate entry refers to eligible operators/lessors passing the savings to drivers. These are historical scheme examples, not a new YA 2026 grant.
- Qualifying staff training may receive an additional 300% deduction on the first S$400,000 per YA under the Enterprise Innovation Scheme, for YA 2024–YA 2028, subject to funded-course and Skills Framework requirements. The Skills and Workforce Development Agency was formed on 1 July 2026.
- Whether a staff benefit is taxable for an employee does not determine whether the employer can deduct the cost. The employer must independently meet the expense-deductibility rules.
- The CPF entries distinguish YA 2026 changes from changes effective on 1 January 2026. Apply the relevant contribution date and basis period rather than treating every new rule as applicable to all YA 2026 costs.
- Capital Allowances, approved-donation deductions and qualifying renovation deductions have separate rules. Non-deductible in this table does not necessarily mean that no separate relief is available.
Business expensesExpand
Expenses must satisfy income-production conditions. Private, capital or specifically prohibited costs are not deductible. Keep invoices and allocate mixed-use or exempt-income costs.
Capital allowancesExpand
Add back accounting depreciation. Claim qualifying plant and machinery allowances using the applicable write-off method and maintain asset and disposal schedules.
Approved donationsExpand
Qualifying local-cause IPC or Government donations generally receive 250% deduction. Confirm eligibility and keep donor records; ordinary donations are not automatically deductible business expenses.
Group reliefExpand
Qualifying Singapore-incorporated group companies may transfer current-year unutilised Capital Allowances, trade losses and donations. Generally requires 75% group ownership, corresponding profit/assets tests and the same financial year end.
Carryforward of loss itemsExpand
Capital Allowances and trade losses may carry forward subject to the shareholding test; Capital Allowances also requires continuing the same trade. Donations generally have a five-year limit. Do not assume every historic balance remains usable.
Loss carry-back reliefExpand
Qualifying current-year unutilised Capital Allowances and trade losses can generally be carried back one YA, with a combined S$100,000 cap and applicable tests. Donations are not included.
Foreign tax creditExpand
Qualifying resident companies may claim treaty or unilateral relief for foreign tax on income also taxable in Singapore. Apply the relevant credit limit and keep tax-payment evidence.
Incentives and enhanced deductionsExpand
R&D, EIS and approved tax incentives have expenditure, activity and approval conditions. Do not treat a general 400% deduction or concessionary rate as automatic for every business.
Tax treatment of income earned overseas
Overseas income & reporting
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Source and receipt matter
Foreign receipts remitted, transmitted or brought into Singapore may be taxable unless an exemption applies; certain applications of offshore funds can also constitute receipt.
Reporting overseas income
Classify the source, receipt and exemption conditions in the tax computation. Reconcile foreign tax and credits, provide the correct return disclosures and maintain supporting documents. Personal overseas-income rules do not apply automatically to companies.
Certain foreign-sourced incomeExpand
Resident companies may exempt qualifying foreign dividends, branch profits and service income when the subject-to-tax, foreign headline rate of at least 15%, and beneficial-exemption conditions are met. This is not a blanket exemption of overseas receipts.
15FAQ: Corporate Income Tax in Singapore
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FAQ: Corporate Income Tax in Singapore
172 official indexed questions, organised by topic.
Is corporate tax charged on turnover?Expand
No. It applies to chargeable income after relevant tax adjustments, not gross sales.
Does a newly registered company automatically get SUTE?Expand
No. Incorporation, tax residency, shareholding, activity and first-three-YA conditions must be satisfied.
Can SUTE and PTE be combined?Expand
Not on the same normal chargeable income. Apply the eligible scheme.
Does filing ECI replace the annual tax return?Expand
Yes. ECI and the annual return are separate obligations unless an applicable filing waiver is granted.
What is the YA 2026 annual return deadline?Expand
30 November 2026 for Form C-S, C-S (Lite) or C.
Can depreciation be deducted directly?Expand
Accounting depreciation is added back. Qualifying assets may receive capital allowances.
Is all foreign income tax-exempt?Expand
No. Check receipt, source and exemption or credit conditions.
Is the YA 2026 rebate still 40%?Expand
The enhanced rate is 50%, with a S$40,000 combined maximum and cash-grant coordination.
Official question index from the corporate-tax pages reviewed. Open IRAS for the full answer; some questions illustrate historical YAs. FAQ files are linked within their topics.