Singapore Corporate Tax Rate : Singapore Taxation Guide 2021

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    singapore corporate tax rate

    Singapore Tax Rate 2021

    Singapore’s tax rate, capped at 17%, is one of the lowest in the world. And at 0% Capital Gains Tax, you can’t go any lower. Those are two excellent reasons why you should move your funds to Singapore.

    Angel investors, Venture Capitalists, and institutional investors are well aware of the potential for high returns. They consistently prefer putting stock in Singapore incorporated companies. This page will tell you everything you need to know about Singapore’s corporate and personal income tax rates, double-tax-avoidance agreements signed by the city-state, taxes on ownership of assets, stamp duties, tax filing procedures, and tax exemptions in Singapore.

    How Does Singapore Corporate Tax Rate Ranks Against Other Jurisdictions?

    Singapore-Corporate-Taxes-Versus-Other

    Personal Income Tax Rates in Singapore 2021

    Personal Income Tax Rates in Singapore 2021

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      Corporate Taxes, Annual Tax Filings, and Tax Exemptions

      Headline Corporate Tax Rate for Companies in Singapore 17%
      Income Upto Percentage on Which You Don’t Need to Pay Tax Amount Exempt (in SGD) Amount Taxable (in SGD)
      First SGD 10,000 75% 7,500 2,500
      Next SGD 190,000 50% 95,000 95,000
      Total Amount Exempt on First SGD 200,000 51% 102,500 97,500

      TAX EXEMPTION SCHEME FOR NEW STARTUPS, YA 2021 (APPLICABLE FOR FIRST 3 YAs)

      Income UptoPercentage on Which You Don’t Need to Pay TaxAmount Exempt (in SGD)Amount Taxable (in SGD)
      First SGD 100,00075%75,00025,000
      Next SGD 100,00050%50,00050,000
      Total Amount Exempt on First SGD 200,00051%125,00075,000

      PARTIAL TAX EXEMPTION SCHEME FOR QUALIFYING COMPANIES YA 2021

      Singapore Corporate tax rates

      The highest corporate income tax rate in Singapore is 17%, which is determined based on the organization’s chargeable income. For example, taxable income after deducting permissible costs and losses. However the actual rate is one of the lowest. The effective tax rate payable becomes even lower due to the full/incomplete exception system where the main SGD 200,000 of chargeable income is accessible for full or halfway exclusion. Further there are plenty of government motivators, endowments and plans to diminish corporate income tax responsibility.

      Is Your Company Tax Resident in Singapore

      For a company to be tax resident in Singapore it must be controlled and managed from a location within the Republic.

      Singapore has Double Tax Agreements (DTA) with 80+ countries. To avoid suffering double taxation, a Singapore tax resident company must obtain a Certificate of Residence (COR). The Inland Revenue Authority Of Singapore (IRAS) will give you a COR if it believes that you have a “fixed place of residence” within Singapore.

      What this means is that you have a system of management, an office, or some amount of brick-and-mortar space that is likely to remain in place perpetually, to answer official mails and notices and make decisions that affect the business.

      Tax Residency for Foreign-Owned Companies

      Where a company is foreign-owned, tax-residency depends upon:

      • where the management and control of the business is practised,
      • the place where the company’s executive directors live/have a home, and
      • the location of the physical accounting records and reporting documents of the company

      Singapore Corporate tax filing Dates in YA 2021 :

      The due date for submitting corporate income tax returns (Form C-S/ C) for Year of Assessment (YA) 2021:

      (a)e-filing: December 15, 2021

      (b)Paper Filing: November 30, 2021

      NOTE: These dates are the same every year. Bear in mind that Singapore companies have between 11 months – if their financial year ends in December, to 22 months – if their financial year ends in January, to prepare and file their returns.

      Time frame for Singapore corporate tax filing

      • Companies should pay their tax within one month from the date of the Notice of Assessment (NOA). Singapore’s electronic money transfer system, GIRO, is the favoured mode for periodic payment of bills in portions
      • Additionally, companies can appreciate up to 10X minus the interest in regularly scheduled payments when they document their Estimated Chargeable Income electronically inside 90 days from their monetary year end
      • At present, around 81% of corporate taxpayers record their tax returns on schedule in Singapore
      • its unique work culture,
      • and establish a completely local presence.

      Annual Tax Filing

      File all Annual returns with the Accounting and Corporate Regulatory Authority (ACRA)

      Every organization should record its yearly re-visitations of ACRA – the National controller of business activities and the public bookkeeper in Singapore, within one month of its AGM date. Do take note that consolidated returns are not allowed and each organization must record its profits independently.

      Annual tax returns to be filed with the IRAS

      Tax returns are needed to be recorded by November 30 of the evaluation year for income earned in the accounting year previous to the current one.

      Conveying Losses Forward

      Companies in Singapore are permitted to convey forward the unabsorbed exchange (rental) misfortunes and capital recompenses resulting in a long time to balance against the income of those years until the exchange misfortunes are completely used.

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