Calculate your estimated tax liability based on Singapore's pro-business tax regime
Note: This calculator provides estimates based on Singapore's corporate tax regulations for Year of Assessment 2025. The calculation incorporates partial tax exemptions, startup exemptions, and industry-specific incentives where applicable. For precise calculations and tax planning advice, please consult a qualified tax professional or the Inland Revenue Authority of Singapore (IRAS).
Singapore has established itself as a global business hub, attracting entrepreneurs and multinational corporations with its pro-business environment, low corporate tax rates, and extensive tax incentives. The city-state ranks among the world’s most competitive economies, offering a transparent tax system, extensive trade agreements, and a business-friendly regulatory framework.
Singapore offers businesses zero tax on capital gains, one of the world’s lowest corporate tax rates, and access to over 100 tax treaties to prevent double taxation—making it a prime destination for global entrepreneurs and investors.
If you are considering establishing your company in Singapore, understanding the corporate tax structure is crucial. In this guide, we will break down Singapore’s corporate tax rates, tax exemptions, and incentives to help you maximize your profits while staying compliant.
Singapore has a territorial tax system, meaning only income earned or received within the country is subject to taxes. Unlike many countries, there is no capital gains tax or dividend withholding tax, making it an attractive destination for startups and international businesses.
Singapore offers a progressive tax system for corporate entities, where companies benefit from tiered tax exemptions before reaching the standard 17% corporate tax rate.
Type of Business | Corporate Tax Rate |
All Companies (Profit above S$200,000) | 17% |
Foreign-Sourced Income (If not repatriated) | 0% |
Foreign-Sourced Income (Repatriated to Singapore) | Subject to 17% (tax credits apply) |
Key Takeaways:
To encourage investment and innovation, the Singapore government provides several tax reliefs to reduce the tax burden for new and existing businesses.
Newly incorporated companies may benefit from tax exemptions for the first three years:
After the first three years, companies can continue to benefit from tax reductions:
Singapore also provides sector-specific tax incentives for industries such as technology, finance, and R&D:
Tax Incentive | Tax Rate | Targeted Sector |
Global Trader Program (GTP) | 5% – 10% | International Trading |
Pioneer Certificate Incentive | 5% – 10% | Tech, R&D, Innovation |
Finance & Treasury Centre (FTC) | 8% | Financial Services |
Research & Development (R&D) Tax Deduction | 250% Deduction | R&D Companies |
Singapore’s competitive tax system is one of the reasons it ranks among the best places to start a business.
Below is a comparison of corporate tax rates across major business hubs:
Country | Corporate Tax Rate | Dividend Tax | Capital Gains Tax |
Singapore | 17% | 0% | 0% |
Hong Kong | 16.50% | 0% | 0% |
United Kingdom | 25% | 8.75% – 39.35% | 20% |
United States | 21% | 15% – 20% | 20% |
Australia | 30% | 0% – 47% | 30% |
In addition to corporate tax, businesses have to consider Goods & Services Tax (GST), Singapore’s version of VAT.
By using lawful tax techniques, entrepreneurs in Singapore can reduce their tax burden:
Singapore offers much more than just low corporate taxes. Entrepreneurs benefit from:
With low tax rates, business-friendly policies, and global connectivity, Singapore is the ideal destination for startups and multinational companies looking to expand in Asia.
Understanding Singapore’s corporate tax rate and incentives is crucial for foreign entrepreneurs planning to start a business in Singapore. With a competitive tax structure, generous exemptions, and a robust financial ecosystem, Singapore remains one of the best places in the world to launch and grow a business.
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Foreign earnings are not taxed in Singapore unless it is remitted (brought back) to Singapore. Even then, companies may qualify for tax exemptions or relief under Singapore’s Double Tax Agreements (DTAs).
No. Singapore does not impose any capital gains tax, making it an attractive destination for investors and business owners looking to maximize their earnings.
Yes, if your firm’s yearly revenue surpasses S$1 million, you must register for GST which is. Otherwise, GST registration is optional.
Yes, 100% foreign ownership is allowed in Singapore for most business structures, including private limited companies (Pte Ltd). There is no requirement for local shareholders.