Corporate tax in Singapore 2026: Rates, exemptions & filing

Key Takeaways:

• Singapore's corporate income tax rate is a flat 17%¹ with exemptions that can bring your effective rate significantly lower.

• Singapore companies currently benefit from a 50% Corporate Income Tax (CIT) Rebate, with a cash grant available for qualifying companies that employ local staff. See the rebates section below for full details.

• Airwallex helps businesses in Singapore simplify tax preparation by automating expense tracking, categorising deductible and non-deductible costs, and integrating directly with accounting platforms like Xero and QuickBooks.

Corporate tax in Singapore is charged at a flat rate of 17%¹ on chargeable income, and it’s one of the most competitive rates among major economies.

Whether you are incorporating a new company, managing your annual filing, or looking to reduce your tax bill, understanding how the system works is essential.

This guide covers everything your company needs to know: the current rate, how to calculate your chargeable income, the exemptions and incentives available, and how to meet your filing obligations with the Inland Revenue Authority of Singapore (IRAS).

What is corporate tax in Singapore?

Corporate tax is a tax levied on the chargeable income of companies. In Singapore, it applies to all companies incorporated locally, as well as foreign companies that have a branch or place of business here. IRAS administers corporate income tax under the Income Tax Act.

Tax is assessed on a preceding-year basis, which means the income you earn in a given financial year is assessed in the following Year of Assessment (YA). For example, income earned in the financial year ending 31 December 2025 is assessed in YA 2026.¹

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Singapore's corporate income tax rate

Singapore's CIT rate is a flat 17%¹ applied to a company's chargeable income. Chargeable income is your revenue minus allowable deductions and exemptions.

Singapore does not tax capital gains. If your company sells an asset and makes a profit, that gain is generally not subject to corporate tax, provided the asset was held as a capital asset and not as trading stock. This makes Singapore attractive for holding companies and businesses with significant asset portfolios.

Singapore also operates a single-tier tax system. This means corporate income is taxed once at the company level. Dividends paid to shareholders are exempt from further tax. There is no dividend withholding tax for most payments to shareholders.¹

How Singapore's rate compares globally

Singapore's 17%¹ rate sits well below the global and regional average. Here is how it compares to other major economies based on 2024 data:

Source: Tax Foundation, Corporate Tax Rates Around the World, 2024

Hong Kong is the only major Asian business hub with a lower statutory rate, though Singapore's broader incentive ecosystem often results in a lower effective rate for businesses that qualify for the schemes covered later in this guide.

BEPS 2.0 and Large Multinational Groups

If your company is part of a large multinational enterprise (MNE) group with annual revenues of EUR 750 million or more, additional rules may apply under the OECD's Base Erosion and Profit Shifting (BEPS) 2.0 framework.

Singapore has enacted a Domestic Top-up Tax and an Income Inclusion Rule as part of this framework. These ensure that large MNE groups pay a minimum effective tax rate of 15% in each jurisdiction where they operate.

If your group falls within this threshold, consult your tax adviser or refer to the latest guidance on the IRAS website for details.

Corporate tax exemptions in Singapore

Singapore offers two permanent tax exemption schemes that reduce your company's effective tax rate below the headline 17%. Here are the details:

Start-Up Tax Exemption (SUTE)

New companies that qualify for SUTE pay significantly less tax in their first three Years of Assessment.

Under the scheme, 75% of the first S$100,000 of chargeable income is exempt from tax, and 50% of the next S$100,000 is exempt, giving a maximum exemption of S$125,000 per YA.²

To qualify, your company must:

• Be incorporated in Singapore

• Be a tax resident in Singapore for that YA

• Have no more than 20 shareholders throughout the basis period, all of whom are individuals — or have at least one individual shareholder holding 10% or more of the issued ordinary shares

Investment holding companies and companies whose principal activity is property development or investment do not qualify.²

Partial Tax Exemption (PTE)

If your company does not qualify for SUTE — or once the three-year SUTE window has passed — the Partial Tax Exemption applies automatically. Under PTE, 75% of the first S$10,000 of chargeable income is exempt, and 50% of the next S$190,000 is exempt, giving a maximum exemption of S$102,500 per YA.²

The information in this table has been reviewed to be accurate as of 3 June 2026.

The remaining chargeable income above S$200,000 is taxed at the full 17% rate.²

Corporate tax rebates for YA 2025 and YA 2026

Beyond the permanent exemption schemes, the Singapore government periodically announces time-limited rebates to provide additional tax relief. Two are currently in effect:

YA 2025 Corporate Income Tax Rebate

For the Year of Assessment 2025, all companies receive a 50% CIT Rebate on their tax payable, capped at S$40,000.² This applies automatically, and you do not need to apply separately.

Companies that employ at least one local employee (Singapore Citizen or Permanent Resident) in 2024 also receive a minimum benefit of S$2,000 in the form of a CIT Rebate Cash Grant.² This cash grant is payable even if your company has no tax payable for YA 2025, meaning companies with zero tax liability still benefit.

To be eligible for the cash grant, the local employee must be on your CPF payroll. Shareholders who are also directors of the company are excluded from the local employee count.²

YA 2026 Corporate Income Tax Rebate

For YA 2026, all companies also receive a 50% CIT Rebate on their tax payable, capped at S$40,000.² Companies that employed at least one local employee (Singapore Citizen or Permanent Resident) in 2025 receive a S$2,000 CIT Rebate Cash Grant.

If your company qualifies for both the rebate and the cash grant, the rebate is capped at S$38,000, bringing the total benefit to S$40,000.² IRAS applies the rebate automatically; no separate application is required.

How to calculate your corporate tax in Singapore

Your corporate tax bill is based on your chargeable income, not your total revenue. Here’s how it works.

What counts as taxable income

All income your company earns from its trade or business in Singapore is taxable. This includes:

• Revenue from sales of goods or services

• Rental income from business premises

• Interest income earned in the course of business

• Royalties and licensing fees

Foreign-sourced income — such as dividends, branch profits, or service income from overseas — may be taxable when remitted to Singapore, unless it qualifies for a tax exemption under Section 13 of the Income Tax Act.²

Allowable deductions

You can deduct expenses that are incurred wholly and exclusively in producing your income. Common deductible expenses include²:

• Staff salaries, bonuses, and CPF contributions

• Office rent and utility costs

• Business travel and accommodation

• Professional fees (audit, legal, accounting)

• Depreciation through capital allowances on qualifying assets

• Qualifying donations to approved Institutions of Public Character (IPCs) — check IRAS for the current deduction rate

Keeping accurate, well-organised records of your expenses is essential. It makes filing easier and ensures you claim everything you are entitled to.

If your team is managing multiple cost categories, a dedicated expense tracking system can help. Read our guide on how to track business expenses for practical tips.

Expenses you cannot deduct

Not every business cost is tax-deductible. The following are non-deductible:

• Private or personal expenses

• Capital expenditure (though some may qualify for capital allowances)

• Provisions and reserves not yet incurred

• Fines and penalties

• Expenses incurred to produce exempt or non-taxable income

Example: Calculating your corporate tax

Here is how the tax calculation works for a company that does not qualify for SUTE and uses the Partial Tax Exemption (PTE).

Assumptions: Chargeable income of S$300,000, YA 2026, PTE applies.

The information in this table has been reviewed to be accurate as of 3 June 2026.

Tax payable: S$197,500 × 17% = S$33,575

Without PTE, the tax on S$300,000 at 17% would be S$51,000. The exemption saves this company S$17,425 in this YA.

Tax incentives and schemes in Singapore

Singapore offers a range of incentives that go beyond the standard exemptions. These schemes are designed to encourage investment in innovation, internationalisation, and high-value activities. Here are the ones most relevant to growing businesses:

Enterprise Innovation Scheme (EIS)

The EIS gives businesses 400% tax deductions or allowances on qualifying expenditure across these activities:

• Research and development (R&D) undertaken in Singapore

• Intellectual property (IP) registration

• Acquisition and licensing of IP rights

• Training on courses eligible for SkillsFuture Singapore (SSG) funding and aligned with the Skills Framework

• Innovation projects with polytechnics, the Institute of Technical Education (ITE), or other qualified partners.⁴

The enhanced deductions apply to up to S$400,000 of qualifying expenditure per activity per YA (or S$50,000 for innovation projects with partner institutions). The EIS is available from YA 2024 to YA 2028.⁴

If your company is not yet profitable, you can convert up to S$100,000 of total qualifying expenditure into a non-taxable cash payout instead of taking the tax deduction. The cash payout is calculated at a 20% conversion rate, giving you a maximum of S$20,000 per YA.⁴

To qualify for the cash payout, your company must⁴:

• Be carrying on active business operations in Singapore

• Have incurred qualifying expenditure during the basis period of the relevant YA

• Make CPF contributions for at least three full-time local employees for at least six months during the basis period

• File your income tax return by the statutory deadline

Investment holding companies, clubs, associations, and charities are not eligible for the EIS cash payout.

Double Tax Deduction for Internationalisation (DTDI)

The DTDI scheme supports Singapore companies expanding overseas.

It provides an enhanced tax deduction on qualifying expenses incurred for approved overseas market development activities, such as overseas trade fairs, market feasibility studies, and business development trips.

Check the IRAS website for the current qualifying activities and any approval requirements, as these are periodically updated.

Development and Expansion Incentive and Pioneer Certificate

The Development and Expansion Incentive (DEI) and Pioneer Certificate are administered by the Singapore Economic Development Board (EDB). They are designed for companies undertaking high-value or pioneering activities in Singapore.

Qualifying companies may be eligible for reduced concessionary corporate tax rates for an approved period. Full eligibility criteria, qualifying activities, and application details are available on the EDB website at edb.gov.sg.

Other incentives worth noting

Singapore also offers targeted incentives for specific sectors and activities, including schemes for financial institutions, shipping companies, and fund managers.

If your business operates in a regulated or specialised industry, IRAS and EDB are the authoritative sources for current scheme availability and eligibility.

Corporate tax filing requirements in Singapore

Every company incorporated in Singapore must file a corporate income tax return each year, even if it made a loss or did not carry on business during the financial year.⁵ Understanding which form to file, when to file it, and what records to keep will help you avoid penalties and stay compliant with IRAS.

Estimated Chargeable Income (ECI)

Before filing your annual tax return, your company must file an Estimated Chargeable Income (ECI) — a projection of your taxable income for the financial year.

The ECI must be filed within three months from the end of your company's financial year. Some companies qualify for an ECI filing waiver; check the IRAS website for current waiver criteria.

Choosing the right tax return form

IRAS offers three main forms depending on your company's size and circumstances.⁵

Form C-S is available to companies that meet all of the following:

• Incorporated in Singapore

• Annual revenue of S$5 million or below⁵

• Income taxable at the prevailing CIT rate of 17%

• Not claiming carry-back of capital allowances or losses, group relief, investment allowance, foreign tax credit and tax deducted at source⁵

Form C-S (Lite) is for companies that qualify for Form C-S and have annual revenue of S$200,000 or below.⁵ It requires only six essential fields — making it the simplest filing option available.

Form C is for all other companies that do not qualify for Form C-S or Form C-S (Lite). It requires financial statements, a full tax computation, and supporting schedules to be filed together.⁵

If you are a new company filing for the first time, your company will need a Unique Entity Number (UEN) to access IRAS's myTax Portal. Read our guide on tax identification numbers in Singapore for more on how UENs work.

Filing deadline

All companies must file their YA 2026 corporate income tax return by 30 November 2026.⁵ This deadline applies regardless of whether your company made a profit or a loss.

Filing must be done online through myTax Portal at mytax.iras.gov.sg. Your authorised employee or tax agent will need Corppass access to file on your company's behalf.⁵

Late filing penalties

If you miss the 30 November deadline, IRAS may impose a penalty of up to S$5,000.⁵ Directors are personally responsible for ensuring timely and accurate filing, even when a tax agent has been engaged.⁵

Paying your corporate tax

Once IRAS processes your return, you will receive a Notice of Assessment (NOA) — your official tax bill. Payment must be made within one month from the date of the NOA, even if you have filed a revision or objection to the assessment.⁵

GIRO is IRAS's preferred payment method. You can also pay via PayNow QR, AXS, or internet banking.⁵

Record keeping

IRAS requires companies to maintain proper records and accounts to support their tax filings. This includes income records, invoices, receipts, and expense documentation. Check the IRAS website for current record-keeping requirements and the minimum retention period that applies to your company.

Other taxes your company should know about

Corporate income tax is your company's primary tax obligation, but it is not the only one. Depending on your revenue, activities, and property holdings, you may also be subject to Goods and Services Tax (GST), withholding tax, and property tax.

Goods and Services Tax (GST)

GST is a consumption tax charged on taxable goods and services supplied in Singapore. The current rate is 9%. You must register for GST if your taxable turnover exceeds S$1 million in a calendar year, or if you expect it to exceed S$1 million in the next 12 months.⁶

Voluntary registration is also available if your turnover is below the threshold. Once registered, you must charge GST on your sales, file regular GST returns, and remit the net GST collected to IRAS. The registration threshold and filing obligations are separate from your corporate income tax obligations.⁶

Withholding tax

If your company makes certain payments to non-residents — such as fees for services, royalties, interest, or management fees — you may be required to withhold a portion of the payment and remit it to IRAS.

The applicable withholding tax rate depends on the type of payment and whether the recipient is a company or an individual. Singapore's double taxation agreements (DTAs) with over 90 countries may reduce or eliminate withholding tax obligations in some cases.

Check the IRAS website for the current withholding tax rates applicable to your specific payment type.

Property tax

If your company owns property in Singapore, property tax applies regardless of whether the property generates rental income. The rate depends on the type of property:⁶

• Commercial and industrial properties (offices, factories, warehouses): taxed at a flat rate of 10% of the Annual Value

• Residential properties owned by companies: taxed at non-owner-occupier residential rates on a progressive scale, currently ranging from 12% to 36% of the Annual Value

Property tax is assessed by IRAS based on the Annual Value of the property — an estimate of the annual rent the property could fetch if rented out.⁶

Why Singapore businesses choose Airwallex

Keeping your finances in order throughout the year makes tax time significantly easier. The more organised your expense records, the more accurately you can claim deductions, and the less time you spend on manual reconciliations.

Airwallex is a straightforward way to keep everything in order. Here’s what you get with Airwallex:

Expense tracking that's already categorised

When your team spends on Airwallex corporate cards, every transaction is captured in real time with merchant details, amount, and category. You set the spend policies; Airwallex enforces them automatically. By the time your accountant needs the data, it’s already organised — not sitting in a pile of receipts.

This makes it easier to separate deductible business expenses from non-deductible ones, and to provide IRAS with accurate supporting documentation if required.

Multi-currency accounts without the conversion markup

Many Singapore companies pay overseas suppliers, hire contractors in other countries, or receive revenue in foreign currencies. With Airwallex Global Accounts, you can hold balances in multiple currencies and convert at interbank-aligned rates — so the cost you record for accounting purposes is the cost you actually paid.

Direct integration with your accounting software

Airwallex connects directly with Xero and QuickBooks. Transactions sync automatically, so your accounts are up to date without manual data entry. When your tax agent or accountant prepares your tax computation, the source data is already in the system, reconciled, categorised, and ready.

Frequently asked questions (FAQs)

What is the corporate tax rate in Singapore in 2026?

Singapore's corporate income tax rate is a flat 17% on chargeable income.¹ This rate applies to all Singapore-incorporated companies, regardless of whether they are locally or foreign-owned, and has remained unchanged since YA 2010. Most companies pay significantly less than 17% after applying the Start-Up Tax Exemption (SUTE) or Partial Tax Exemption (PTE).

What is the difference between SUTE and PTE?

SUTE applies to qualifying new companies for their first three consecutive Years of Assessment. It exempts 75% of the first S$100,000 and 50% of the next S$100,000 of chargeable income, up to S$125,000 per YA.² PTE applies automatically to all other companies with no eligibility conditions, exempting up to S$102,500 per YA. You cannot claim both in the same YA; SUTE takes precedence during the qualifying period.

Does my company need to file a tax return if it made a loss?

Yes. Every Singapore-incorporated company must file a corporate income tax return each year, even if it made a loss or did not carry on any business during that financial year.⁵ Filing a loss return allows your company to carry forward the losses to offset against future profits. The only exception is if IRAS has granted your company a specific filing waiver — typically for dormant companies that meet qualifying conditions.

Do foreign companies pay the same corporate tax rate in Singapore?

Yes, foreign-incorporated companies carrying on business in Singapore are subject to the same 17% corporate income tax rate.¹ However, foreign companies and their Singapore branches are not eligible for the Start-Up Tax Exemption, which is reserved for companies incorporated in Singapore. They may still claim the Partial Tax Exemption on their normal chargeable income.²

What is the difference between Form C, Form C-S, and Form C-S (Lite)?

Form C is the full tax return for companies that do not meet the criteria for simplified filing. Form C-S is for companies with annual revenue of S$5 million or below that meet IRAS's qualifying conditions.⁵ Form C-S (Lite) is the simplest option, requiring only six fields — available to companies with annual revenue of S$200,000 or below.⁵ All three are filed online via myTax Portal by 30 November each year.

How long does my company need to keep tax records in Singapore?

IRAS requires companies to retain proper records and supporting documents for a minimum period from the end of the relevant Year of Assessment. This includes invoices, receipts, bank statements, and expense documentation. Check the IRAS website for the current record retention requirements applicable to your company type. Inadequate records can result in disallowed deductions and penalties during an IRAS audit.

Sources:

1. iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/basic-guide-to-corporate-income-tax-for-companies

2. iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes

3. taxfoundation.org/data/all/global/corporate-tax-rates-by-country-2024/

4. iras.gov.sg/schemes/disbursement-schemes/enterprise-innovation-scheme-(eis)

5. iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-filing-season-2026

6. iras.gov.sg/taxes/goods-services-tax-(gst)/gst-registration-deregistration/do-i-need-to-register-for-gst

7. iras.gov.sg/taxes/property-tax/property-owners/property-tax-rates

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.