How to calculate Corporate Tax in Singapore
Corporate Tax Calculator
Understanding corporate income tax in Singapore is crucial for any business operating within its borders. The city-state offers a competitive tax environment designed to attract businesses, characterised by clear regulations and attractive incentives. Calculating corporate taxes in Singapore is quite straightforward for most of the companies with simple structure. You can use our online calculator to estimate your corporate tax in Singapore instantly!
A useful tool for companies is the corporate tax calculator, which estimates payable taxes based on provided income data. This tool simplifies tax planning and helps ensure compliance with Singapore’s tax regulations.
Corporate Tax Rates and Deductions in Singapore
Singapore follows a single-tier corporate tax system, meaning the tax paid by companies on their profits is final. In other words, Singapore does not impose taxes on dividends that are paid to the company’s owners. The standard corporate tax rate is 17%. However, numerous deductions and exemptions can lower the effective tax rate significantly.
Deduction for New Companies
New start-up companies benefit from the Start-Up Tax Exemption (SUTE) scheme. For the first three consecutive years of assessment, a newly incorporated company can enjoy 75% exemption on the first SGD 100,000 of normal chargeable income and a further 50% exemption on the next SGD 100,000.
| Enter your net income, SGD: | |
| Tax on first 100,000: | |
| Tax on next 100,000: | |
| Tax on all above 200,000: | |
| Total tax payable: |
Deductions for All Other Companies
Other companies can benefit from the Partial Tax Exemption (PTE) scheme. This provides a 75% exemption on the first SGD 10,000 of chargeable income and a 50% exemption on the next SGD 190,000.
| Enter your net income, SGD: | |
| Tax on first 10,000: | |
| Tax on next 190,000: | |
| Tax on all above 200,000: | |
| Total tax payable: |
When to File Tax Declaration
The annual tax return must be filed with the Inland Revenue Authority of Singapore (IRAS) by November 30th for paper filing and by December 15th for electronic filing. This includes Form C-S/C, which details the company’s income, deductions, and exemptions.
When to File Estimated Taxable Income (ECI)
The Estimated Chargeable Income (ECI) must be filed within three months from the end of the financial year. The ECI declaration helps IRAS determine the company’s tax payable in advance.
