What is corporate tax rate in Singapore?
The current corporate tax rate in Singapore is a flat 17%. Full and partial tax exemptions are available for taxable income of up to S$300,000.
More details can be found at Corporate Tax in Singapore.
What is the difference between a resident and a non-resident Singapore company?
A company is resident in Singapore if the control and management of the company is exercised in Singapore. In general, the control and management of the company is taken to be the place where the Board of Directors' meetings are held.
Generally, a non-resident company enjoys the same privileges as a resident company. It has the same obligations and rights under the Act. However, a non-resident company is unable to take advantage of tax incentives available to resident companies.
I want to set up a limited by guarantee company in Singapore. Will it be eligible for tax exemption during the first 3 years of incorporation?
Yes. With effect of 2010, a newly-incorporated Singapore start-up, including Singapore companies limited by guarantee, is eligible for tax exemption during its first three consecutive years of assessment (YA) if it fulfills all of these requirements:
- is a Singapore tax resident (is managed and controlled in Singapore) for that YA.
- has no more than 20 shareholders throughout the basis period for that YA or
- at least 10% of the shareholders are individuals.
More details can be found at Corporate Tax in Singapore.
What is the difference between full tax exemption and partial tax exemption for start-ups?
Both tax exemptions are meant for Singapore start-ups. However, full corporate tax exemption (on normal chargeable income up to $100,000, for the first three consecutive tax filing years) is only granted to start-ups that meet the following criteria:
- be a company incorporated in Singapore
- be a tax resident in Singapore for that year
- have no more than 20 shareholders throughout the basis period relating to that year; and
- At least 10% of the shareholders must be individuals
Any company that does not meet the above qualifying conditions would still be eligible for partial corporate tax exemption.
Singapore subsidiaries and branch offices can qualify for partial tax exemption and not full tax exemption.
More details can be found at Corporate Tax in Singapore.
I’d like to set up a Singapore branch office for my business (a start-up). Will it qualify for the start-up tax exemption?
This would in turn mean that it is not a Singapore tax resident either as the management and control of your branch by the parent company which is located overseas.
Nevertheless, your Singapore branch will be able to enjoy a partial tax exemption on its chargeable income.
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