Quick answer
Singapore's corporate income tax rate is a flat 17% in 2026, but small companies pay far less. Partial exemption makes about half of the first SGD 200,000 of profit tax-free, and new companies get a start-up exemption in their first three years. A start-up earning SGD 200,000 pays roughly SGD 12,750, an effective rate near 6.4%. Dividends are tax-free.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Check my business setup →You're thinking of running your consulting, SaaS or e-commerce business through a Singapore company, or you already have one. You want to know what it really pays in 2026, and what can make the low rate disappear. After reading, you'll know the effective rates, the filing calendar and the structure question that matters most.
Singapore corporate income tax in 2026: the key figures
| Item | Rule for year of assessment 2026 |
|---|---|
| Headline rate | 17% flat on chargeable income |
| Partial tax exemption (all companies) | 75% of first SGD 10,000 and 50% of next SGD 190,000 exempt |
| Start-up tax exemption (first 3 YAs) | 75% of first SGD 100,000 and 50% of next SGD 100,000 exempt |
| Dividends paid to shareholders | Tax-free, no withholding (one-tier system) |
| Foreign dividends, branch profits, service income | Exempt under s13(8) if taxed abroad at a headline rate of 15% or more |
| Filing | Estimated Chargeable Income within 3 months of year-end; Form C-S / C by 30 November |
| Global minimum tax | 15% for groups with revenue of EUR 750 million or more, from 2025 |
Recent Budgets added a corporate income tax rebate, 50% capped at SGD 40,000 for YA 2025.
Is this guide for you?
Read on if you…
- own or plan to set up a Singapore private limited company;
- run a service business from Singapore with clients worldwide;
- want to compare a company with trading as a sole proprietor.
Probably not your case if you…
- are a tax manager in a group with over EUR 750 million revenue (Pillar Two needs its own analysis);
- only invest personally and don't run a business.
How much corporate tax does a Singapore company really pay?
The headline rate is 17%. But two exemptions cut the taxable base for small profits.
Start-up tax exemption (SUTE). For its first three years of assessment, a new company is exempt on 75% of the first SGD 100,000 and 50% of the next SGD 100,000. Conditions: incorporated and tax resident in Singapore, no more than 20 shareholders, all individuals or with at least one individual holding 10% or more. Investment holding and property development companies are excluded.
Partial tax exemption (PTE). From year four, or if you don't qualify for SUTE, 75% of the first SGD 10,000 and 50% of the next SGD 190,000 are exempt.
| Chargeable income | Tax with start-up exemption | Tax with partial exemption |
|---|---|---|
| SGD 100,000 | SGD 4,250 (4.3%) | SGD 8,075 (8.1%) |
| SGD 200,000 | SGD 12,750 (6.4%) | SGD 16,575 (8.3%) |
| SGD 500,000 | SGD 63,750 (12.8%) | SGD 67,575 (13.5%) |
Profits are what's left after deductible costs. See business expenses in Singapore for what counts.
Which business structure fits what you do?
| Entity | Liability | Minimum capital | Setup cost and time | Tax | Can a non-resident run it remotely? |
|---|---|---|---|---|---|
| Private limited company (Pte Ltd) | Limited to capital | SGD 1 | ACRA fee SGD 315; usually 1–3 days | 17% with exemptions; tax-free dividends | Yes, but needs one locally resident director |
| Sole proprietorship | Unlimited | None | Low; same day | Owner's personal rates, 0–24% | Needs a local authorised representative |
| Limited liability partnership (LLP) | Limited for each partner | None | Low; 1–2 days | Partners taxed personally | Needs a local manager |
| Branch of a foreign company | Parent fully liable | None | Moderate; needs a local authorised representative | 17%; no start-up exemption | Yes, through the local representative |
Most founders choose the Pte Ltd. A locally resident director means a Singapore citizen, PR or work pass holder living in Singapore. Full details are in legal forms of business in Singapore. For hands-on help with incorporation, see Heavnn business setup.
Where is your company actually taxed? The management-and-control trap
Here's the catch. A company is tax resident in Singapore only if its control and management – basically where the board makes strategic decisions – is exercised in Singapore.
If you're the sole director and you live in Lisbon or Bali, decisions are made there. Consequences:
- The company may not be Singapore tax resident, so it loses the start-up exemption, treaty benefits and the s13(8) foreign income exemption.
- Your home country may treat the company as resident there, taxing all its profits at its own rate.
- Even if residence holds, your work abroad may create a permanent establishment – a taxable presence – in that country, which taxes the profits from your activity there.
Hold board meetings in Singapore, keep a real local director with decision-making power and document it. Your own tax residency in Singapore is part of the same picture.
When and how do you file?
- Estimated Chargeable Income (ECI) within three months of your financial year-end. Not needed if revenue is SGD 5 million or less and ECI is nil.
- Annual return by 30 November: Form C-S Lite (revenue up to SGD 200,000), Form C-S (up to SGD 5 million) or Form C.
- Payment within one month of the Notice of Assessment, or by interest-free GIRO instalments if you filed ECI early.
Losses carry forward indefinitely if at least 50% of shareholders stay the same. Up to SGD 100,000 can be carried back one year. Group relief lets losses offset profits of other Singapore companies in a 75%-owned group.
Example – Jonas, Dutch SaaS founder
Jonas moves to Singapore on an EntrePass and incorporates a Pte Ltd in 2025. In its second year, financial year 2026, the company earns SGD 200,000 chargeable income. Using the start-up exemption, tax is SGD 12,750, an effective 6.4%. He pays himself a SGD 120,000 salary, taxed at personal rates of SGD 7,950 before reliefs, and takes the rest as tax-free dividends. Board meetings are held in Singapore, so the company's residence is clear.
Jonas's company pays 6.4% because his structure holds together. Does yours?
Heavnn checks your entity, residence and director setup before IRAS or your home country does.
Check my business setup →Common mistakes (and what they cost)
- Managing the company entirely from abroad → loss of Singapore residence, and possibly full taxation of profits in your home country.
- Using a nominee director with no real role → weak evidence of local control and management.
- Missing the ECI or Form C-S deadline → estimated assessments, composition fines and penalties.
- Assuming all foreign income is tax-free → foreign income received in Singapore is taxable unless s13(8) conditions are met.
- Setting up an investment holding company expecting the start-up exemption → it's excluded, so only partial exemption applies.
Frequently asked questions
What is the corporate tax rate in Singapore in 2026?
The headline corporate income tax rate is 17% in 2026. Partial exemption makes 75% of the first SGD 10,000 and 50% of the next SGD 190,000 tax-free. Qualifying new companies get a larger start-up exemption for three years. Effective rates on the first SGD 200,000 of profit are therefore between about 6% and 8.3%.
Who qualifies for the start-up tax exemption?
A company incorporated in Singapore, tax resident there, and with no more than 20 shareholders throughout the year, all individuals or with at least one individual holding 10% or more. It applies for the first three years of assessment. Investment holding companies and companies developing property for sale or investment are excluded.
Are dividends taxed in Singapore?
No. Under the one-tier system, corporate tax paid by the company is final and dividends are tax-free for shareholders. Singapore doesn't withhold tax on dividends paid to non-residents either. Your country of residence may still tax the dividends you receive, so check this if you live outside Singapore.
Does a Singapore company need a local director?
Yes. Every Singapore company must have at least one director who is ordinarily resident in Singapore: a citizen, a permanent resident or a work pass holder living there. A company secretary must be appointed within six months. Using a real local director also supports the company's tax residence in Singapore.
Is foreign income of a Singapore company taxed?
Foreign income is taxed only when received in Singapore. Foreign dividends, branch profits and service income are exempt under section 13(8) if they were subject to tax abroad at a headline rate of at least 15%. Since 2024, section 10L can tax gains on foreign assets sold by companies without enough substance in Singapore.
When must a Singapore company file its tax return?
The Form C-S, C-S Lite or C is due by 30 November each year for the previous financial year. Estimated Chargeable Income is due within three months of the financial year-end, unless revenue is SGD 5 million or less and the estimate is nil. Payment is due one month after the Notice of Assessment.
Related guides
- Legal forms of business in Singapore – Pte Ltd, sole proprietorship and LLP compared.
- Business expenses in Singapore – deductions and capital allowances.
- Tax landscape overview of Singapore – all Singapore taxes in one page.
- Capital gains tax in Singapore – section 13W and section 10L for companies.
- Tax fraud regulations of Singapore – penalties for late or wrong returns.
- Corporate income tax in Hong Kong and corporate income tax in Thailand – regional comparison.
- All country tax guides
Sources
- IRAS – Corporate income tax
- Income Tax Act 1947, Singapore Statutes Online
- ACRA – Accounting and Corporate Regulatory Authority
- Ministry of Finance Singapore – Budget
- OECD – Base erosion and profit shifting (Pillar Two)
This guide is general information, not personalised tax advice. See how we research and review.
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