As a leading business consultancy in Singapore, we understand that mastering the complexities of corporate tax in Singapore is fundamental to a company’s financial success and compliance. Singapore remains one of the most attractive global business hubs, thanks to its low corporate tax rate in Singapore and robust incentive landscape.

For Year of Assessment (YA) 2025, it is crucial for businesses to grasp the latest regulations, deadlines, and benefits. This in-depth guide provides a comprehensive breakdown of everything you need to know about IRAS corporate tax rate, key reliefs, corporate tax filing deadline Singapore, and lucrative incentives.

The headline corporate tax rate in Singapore is a flat 17% on chargeable income. However, Singapore offers extensive tax exemptions and rebates (such as the Startup Tax Exemption and Partial Tax Exemption) that significantly reduce the effective tax rate for most Small and Medium Enterprises (SMEs). All companies must file their Estimated Chargeable Income (ECI) within three months of their financial year end, and the annual Income Tax Return (Form C-S or Form C) by November 30th.

Corporate Tax in Singapore 2025: Rates, Reliefs, Filing, Deductions, and Incentives

As an SME owner, a finance team member, or a foreign entrepreneur, navigating the intricacies of corporate tax in Singapore is essential for compliance and financial success. Singapore is globally recognised for having one of the most competitive and straightforward tax systems. This comprehensive guide, updated for the 2025 financial year, breaks down everything your business needs to know about Singapore corporate tax, from rates and filing to exemptions and global rules.

Overview of Singapore’s Corporate Tax System

The Singapore corporate tax system is designed to be attractive for businesses of all sizes, featuring a low headline rate and extensive reliefs.

What is the Corporate Tax Rate for Companies in Singapore?

The statutory Singapore corporate tax rate is a flat 17% on a company’s chargeable income. This flat rate applies to all companies, regardless of size or ownership—meaning the tax rate for foreign-owned company operating in Singapore is also 17%. However, most SMEs pay significantly less due to exemptions.

Key Features of the System

Understanding Singapore’s Corporate Tax Structure

The IRAS Corporate Tax Rate

The IRAS corporate tax rate (Inland Revenue Authority of Singapore) stands at a headline rate of 17% for the Year of Assessment (YA) 2025. This flat rate applies to all companies incorporated in Singapore, as well as foreign companies with operations in the country. Compared to global standards, Singapore’s corporate tax rate remains highly competitive, particularly when considering the various exemptions and incentives available.

The corporate tax rate in Singapore has remained stable at 17% since 2010, reflecting the government’s commitment to maintaining a predictable and attractive business environment. This consistency allows companies to plan their tax strategies with confidence and long-term certainty.

Corporate Tax Exemption Singapore: Maximizing Tax Savings

One of Singapore’s most attractive features for businesses is its generous tax exemption schemes, particularly beneficial for new companies and small-to-medium enterprises (SMEs).

Tax Exemption for New Start-Up Companies

Newly incorporated companies can benefit from the Start-Up Tax Exemption (SUTE) scheme for their first three consecutive YAs. Under this corporate tax exemption Singapore scheme:

• 75% exemption on the first S$100,000 of normal chargeable income
• 50% exemption on the next S$100,000 of normal chargeable income

This means a qualifying new company with S$200,000 in chargeable income would only pay tax on S$87,500, resulting in a tax liability of just S$14,875 instead of S$34,000.

Partial Tax Exemption for All Companies

Companies that don’t qualify for SUTE, or those that have exhausted their three-year start-up exemption period, can still benefit from the Partial Tax Exemption (PTE) scheme:

• 75% exemption on the first S$10,000 of normal chargeable income
• 50% exemption on the next S$190,000 of normal chargeable income

This exemption applies automatically to all companies and significantly reduces the effective tax rate for SMEs.

The Singapore Corporate Tax Rate 2025: An Attractive Standard

Singapore adopts a single-tier corporate income tax (CIT) system, meaning once a company’s profit is taxed, dividends distributed to shareholders are exempt from further taxation.

The Standard IRAS Corporate Tax Rate

The statutory headline corporate tax rate in Singapore remains highly competitive:

• Standard Corporate Tax Rate: 17%

This rate is one of the lowest in the region, reflecting Singapore’s pro-business stance. However, the effective tax rate for many companies, especially Small and Medium Enterprises (SMEs), is often significantly lower due to generous corporate tax exemption Singapore schemes.

Corporate Tax Rates & Exemptions

The effective tax rate for a Singapore company is significantly reduced by two primary tax relief schemes. This addresses how much tax will my Singapore company pay after exemptions.

1. Startup Tax Exemption Scheme (SUTE)

The startup tax exemption Singapore company scheme is crucial for new businesses.

Can a newly incorporated Singapore company claim 3 years tax exemption? Yes, a qualifying resident company can claim SUTE for its first three consecutive Years of Assessment (YAs).

• How to claim start-up tax exemption Singapore company: No formal application is required; it is claimed automatically by declaring the chargeable income in the Form C-S/C.
• Exclusion: Which companies are excluded from start-up tax exemption scheme in Singapore? Investment holding companies and companies engaged primarily in property development for sale or investment are excluded.

2. Partial Tax Exemption (PTE)

Partial tax exemption scheme for companies Singapore how it works? This scheme is available to all resident companies from the 4th YA onwards, or immediately for non-SUTE qualifying companies, on their first $200,000 of chargeable income.

How to calculate effective tax rate of my Singapore company after reliefs?

3. Corporate Tax Rebate (YA 2025)

Singapore corporate tax rebate year of assessment 2025 details: The government announced a 50% Corporate Income Tax (CIT) Rebate for YA 2025 (on tax payable), with a cap. Furthermore, active companies employing at least one local employee in 2024 will receive an additional non-taxable cash grant, capped at a maximum combined benefit.

Read also: Guide to Income and Corporate Tax Filing in Singapore (2025)

Tax Filing Requirements & Deadlines

Filing is mandatory, ensuring companies meet the Singapore corporate tax compliance digital services MyTax and CorpPass requirements.

Forms and Filing

What forms do Singapore companies need to file for corporate tax?

1. Estimated Chargeable Income (ECI): Declaration of estimated profits.
2. Form C-S, C-S (Lite), or Form C: The annual income tax return.

When is the estimated chargeable income (ECI) filing deadline Singapore?

The ECI filing deadline is strictly within 3 months after your company’s financial year end (FYE). For example, if your FYE is December 31, 2025, the ECI is due by March 31, 2026. Early filing allows companies enrolled in GIRO to enjoy up to 10 instalment payments.

How to file Form C-S for Singapore company corporate tax (Steps):

1. Preparation: Ensure your revenue is ≤5$ million (for Form C-S) and prepare your financial statements and tax computation.
2. Access: Log in to the IRAS MyTax Portal using CorpPass.
3. Submission: Select the relevant YA and complete the simplified Form C-S. No need to attach financial statements, but they must be prepared and retained.

Penalties and Compliance

What happens if you miss corporate tax filing deadline in Singapore?

IRAS may issue an estimated Notice of Assessment (NOA), which is often high. Non-compliance can lead to penalties ranging from $200 to $1,000 or more. What is the penalty for late payment of corporate tax in Singapore? A 5% penalty is imposed immediately on the unpaid tax amount if payment is late, followed by an additional 1% penalty for every completed month the tax remains unpaid, up to a maximum of 12%.

Basis Period and Record Keeping

• What is basis period for year of assessment for Singapore companies? The basis period is the company’s financial year (usually 12 months) ending in the calendar year preceding the Year of Assessment (YA). For YA 2025, the basis period is the financial year ending in 2024.
• Tax implications of changing financial year end for Singapore company: Changing the FYE may result in a short or long basis period, which requires IRAS approval and careful tax computation to ensure a maximum 12-month period is claimed for each YA.
• Record keeping requirements for corporate tax filing in Singapore: Companies must retain all business records (invoices, receipts, bank statements, financial statements, tax computation) for at least 5 years from the relevant YA.

Taxable Income, Deductions & Allowances

Chargeable Income is calculated as: Taxable Income – Allowable Deductions – Capital Allowances – Unutilised Losses/Donations.

Taxable Income

What counts as taxable income for Singapore companies? This includes all revenue profits arising in or derived from Singapore, and foreign-sourced income received in Singapore (unless exempted). Does Singapore impose tax on interest and royalties earned by a company? Yes, interest and royalties derived in Singapore are generally taxable.

Deductions and Allowances

• What expenses are deductible for Singapore corporate income tax? Only expenses “wholly and exclusively” incurred in the production of income are deductible. This includes staff costs, rent, utilities, general legal/accounting fees, and trade-related borrowing costs.
• How to claim research & development tax deduction Singapore company? Enhanced tax deductions (e.g., up to 250% or 400% for qualifying R&D expenditure under schemes like the Enterprise Innovation Scheme (EIS)) can be claimed by itemising the expenses in the tax computation.
• Tax deduction for charitable donations by Singapore company: Cash donations made to an approved Institution of a Public Character (IPC) are deductible at 250% of the donated amount.
• Can unutilised losses be set-off in Singapore corporate income tax? Yes, unutilised losses and capital allowances can be carried forward indefinitely (subject to continuity of shareholding test) or carried back to the immediate preceding YA (subject to limits).

Capital Allowance

How to claim capital allowance for assets in Singapore company tax return? Instead of an immediate expense deduction, the cost of fixed assets (e.g., equipment, machinery) is claimed over a period (e.g., 3 years, 2 years, or 1 year) as Capital Allowances in the tax computation.

Tax Incentives and International Rules

Corporate Tax Incentives

What industries qualify for corporate tax incentives in Singapore? Key qualifying sectors include:

• Financial Services: Schemes like the Financial Sector Incentive (FSI) offer reduced tax rates of 5%, 10%, or 13,5% for specific activities (e.g., fund management, derivatives trading).
• Headquarters/Trading: Schemes for regional or international headquarters.
• R&D and IP: Incentives like the Intellectual Property Development Incentive (IDI) offer preferential tax rates on qualifying IP income.

Tax incentive schemes for fintech startups Singapore: Beyond the SUTE, fintech startups can leverage the Enterprise Innovation Scheme (EIS) for enhanced R&D deductions and the Refundable Investment Credit (RIC) for strategic high-value activities.

Foreign Income and Withholding Tax

How does Singapore tax foreign sourced income of a company? Foreign-sourced income is taxable only when received or deemed received in Singapore. It is exempt if specific FSIE conditions are met (i.e., taxed in a foreign jurisdiction at ≥15% and IRAS is satisfied the exemption is beneficial).

Withholding tax obligations for foreign companies doing business in Singapore: Singapore companies must withhold tax on payments to non-residents for specific services like interest, royalties, rent, and technical fees. The rate varies but is often reduced by Double Taxation Agreements (DTAs).

Global Tax Rules

• Global minimum tax rules effect on Singapore multinational companies: Starting from financial years commencing on or after January 1, 2025, Singapore will implement a 15% minimum effective tax rate for large Multinational Enterprise (MNE) groups (global revenue ≥€750 million) under the OECD’s BEPS 2.0 Pillar Two rules.
• What is the domestic top-up tax under Singapore’s multinational enterprise rules? The Domestic Top-Up Tax (DTT) ensures that if the MNE group’s effective tax rate in Singapore falls below 15%, a DTT is applied to bring it up to the minimum. This prevents other jurisdictions from claiming the top-up tax.

Compliance and Tax Planning

Determining Tax Residency

How to determine Singapore company tax residency status? A company is a Singapore tax resident if the control and management of its business is exercised in Singapore. This is typically where Board meetings are held and strategic decisions are made. A resident company qualifies for SUTE, PTE, and benefits under DTAs.

How to apply for certificate of residence for Singapore tax purposes? Resident companies can apply to IRAS electronically for a Certificate of Residence (COR) to claim tax relief under DTAs with foreign tax jurisdictions.

Corporate Tax Planning

How to minimise corporate tax bill legally for Singapore company (Strategies):

1. Maximise Exemptions: Ensure full utilisation of SUTE/PTE.
2. Claim R&D/Incentives: Proactively identify and claim enhanced deductions under schemes like EIS and RIC.
3. Optimal Structure: How to convert sole proprietorship to Pte Ltd for tax advantages in Singapore? Converting allows the business to access the corporate tax system and its lower effective tax rates and tax incentives, which sole proprietorships cannot.
4. Timing of Income/Expense: Manage the timing of major deductible expenses to fall within the appropriate basis period.

Corporate tax planning strategies for SMEs in Singapore focus heavily on maximizing SUTE/PTE, proper capital allowance claims, and leveraging grants.

Dealing with IRAS

• What are common audit triggers for corporate tax in Singapore? Common triggers include persistent loss-making positions, major discrepancies between statutory and tax accounts, non-declaration of revenue, or inconsistent expense claims compared to industry norms.
• How to object to corporate tax assessment by IRAS in Singapore? A company must file a Notice of Objection (NOO) to IRAS, stating the grounds for the objection, within two months from the date of the Notice of Assessment (NOA).

Singapore Corporate Tax Filing: Essential Requirements

Corporate Tax Filing Deadline Singapore

Understanding and meeting the corporate tax filing deadline Singapore is crucial to avoid penalties and maintain good standing with IRAS. The key deadlines for 2025 include:

Estimated Chargeable Income (ECI) Filing:

• Must be filed within three months from the company’s financial year-end
• Companies with annual revenue not exceeding S$5 million and ECI not exceeding S$100,000 are exempted from filing ECI

Form C-S/C Filing:

• Form C-S (Simplified): For companies with annual revenue of S$5 million or less – due by 30 November of each year
• Form C: For all other companies – due by 30 November of each year, or 15 December if filing electronically

The singapore tax filing process has been streamlined significantly through IRAS’s digital platforms, making compliance more efficient for businesses of all sizes.

Annual Returns Filing

Beyond tax filing, companies must also complete annual returns filing with the Accounting and Corporate Regulatory Authority (ACRA). This includes:

• Annual General Meeting (AGM) must be held within 6 months of the financial year-end
• Annual Return must be filed within 7 months of the financial year-end

While these are separate from income tax filing Singapore requirements, coordinating both processes ensures comprehensive corporate compliance.

Key Tax Deductions and Allowable Expenses

Maximizing deductions is essential for optimizing your tax position. Singapore’s corporate tax framework allows various business expenses to be deducted when computing taxable income.

Common Deductible Expenses

Operating Expenses:

• Employee salaries and bonuses
• Rental expenses for business premises
• Utilities and office supplies
• Professional fees (legal, accounting, consulting)
• Marketing and advertising costs
• Insurance premiums related to business operations

Capital Allowances:

• Plant and machinery (100% write-off in the first year for productivity equipment)
• Renovation and refurbishment costs (100% write-off over 3 years)
• Intellectual property rights
• Computer software and hardware

Financial Costs:

• Interest expenses on business loans
• Bank charges and financing fees
• Foreign exchange losses related to business operations

Non-Deductible Expenses

It’s equally important to understand what cannot be deducted:

• Private or domestic expenses
• Capital expenditure (though capital allowances may apply)
• Fines and penalties
• Expenses not wholly and exclusively incurred for business purposes
• Entertainment expenses (with limited exceptions)

Corporation Tax Filing: Step-by-Step Process

Efficient corporation tax filing requires careful preparation and understanding of IRAS requirements.

Step 1: Prepare Financial Statements

Ensure your financial statements are:

• Prepared in accordance with Singapore Financial Reporting Standards (SFRS)
• Audited (if required based on company size and revenue)
• Finalized before the filing deadline

Step 2: Determine Taxable Income

Calculate your taxable income by:

• Starting with accounting profit
• Adding back non-deductible expenses
• Deducting allowable expenses and capital allowances
• Applying relevant tax exemptions

Step 3: File ECI (if applicable)

Within three months of your financial year-end:

• Estimate your company’s chargeable income
• File through IRAS’s myTax Portal
• Make payment if required (installment payments accepted)

Step 4: Submit Form C-S or Form C

By the corporate tax filing deadline singapore:

• Complete all required sections accurately
• Attach supporting schedules and computations
• File electronically for extended deadline benefits
• Review and confirm submission

Step 5: Payment

• Tax payment is due upon filing
• GIRO payment options available for convenience
• Interest charges apply for late payment (currently 5% per annum on outstanding amounts)

Benefits of Professional Corporate Tax Service

Given the complexity of singapore corporate tax filing, many businesses engage professional corporate tax service providers. The benefits include:

Expertise and Compliance

• Up-to-date knowledge of tax regulations and changes
• Minimized risk of errors and penalties
• Proper application of exemptions and incentives

Time and Resource Efficiency

• Focus on core business activities
• Reduced administrative burden
• Streamlined processes and documentation

Strategic Tax Planning

• Proactive identification of tax-saving opportunities
• Optimization of corporate structure
• Long-term tax strategy development

Representation and Support

• Liaison with IRAS on your behalf
• Assistance during tax audits or inquiries
• Resolution of complex tax issues

Tax Planning Strategies for 2025-2026

Smart tax planning can significantly reduce your effective tax rate while maintaining full compliance.

Optimize Business Structure

Consider:

• Holding company structures for investment income
• Separate entities for different business activities
• Group relief claims for related companies with tax losses

Maximize Deductions and Allowances

Strategies include:

• Timing capital expenditure to maximize write-offs
• Proper documentation of all business expenses
• Claiming all available capital allowances

Leverage Tax Incentives

Actively pursue:

• Industry-specific incentive schemes
• R&D tax benefits for innovation activities
• Internationalization deductions for expansion

Transfer Pricing Compliance

For companies with related party transactions:

• Maintain proper transfer pricing documentation
• Ensure arm’s length pricing principles
• Consider Advance Pricing Arrangements (APA) for certainty

Your Corporate Tax Service Partner for 2025-2026

Navigating the nuances of income tax filing Singapore, claiming the maximum corporate tax exemption Singapore, and ensuring strict adherence to the corporate tax filing deadline singapore is complex, especially for businesses with international operations or unique structures.

Singapore’s corporate tax system in 2025 continues to offer a competitive and transparent framework that supports business growth and innovation. With a stable corporate tax rate in Singapore of 17%, generous exemption schemes, and numerous incentive programs, companies operating in Singapore enjoy significant advantages.

About Bizsquare Accounting

Bizsquare Accounting is a leading corporate services provider in Singapore, offering comprehensive solutions for company incorporation, annual returns filing, accounting, tax filing, and business advisory services. Our team of experienced professionals helps businesses navigate Singapore’s regulatory landscape efficiently, ensuring compliance while optimizing tax positions. Contact us today to discover how we can support your business success in Singapore.

Bizsquare Accounting offers specialised corporate tax service to ensure your company:

• Maximises Reliefs: Properly applies for SUTE/PTE schemes and all available deductions.
• Ensures Compliance: Meets all annual returns filing and corporation tax filing requirements by the deadlines.
• Optimises Structure: Provides strategic tax planning to legally minimise your effective corporate tax rate in Singapore.

Don’t let the 30 November 2025 deadline catch you off guard. Partner with a professional tax specialist to turn compliance into a competitive advantage.

Get a free initial consultation with a Bizsquare tax specialist to review your company’s eligibility for the maximum corporate tax exemptions and relief for YA 2025 today!