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Singapore Corporate Income Tax Rate and Exemption

Updated: Jun 17, 2023

In Singapore, both local and foreign-owned companies are subject to a flat tax rate of 17% on their chargeable income.


The chargeable income is the taxable income of the company for a specific Year of Assessment (YA), after deducting tax-allowable expenses.


Corporate income tax exemption

Tax Exemption Schemes

With the already low Singapore corporate income tax rate, the government grant exemption to both new start up companies and companies to help further reduce the tax burden. There are two tax exemption schemes available. The first is the tax exemption scheme for new start-up companies, which provides a partial exemption on the taxable income of qualifying companies in their initial years of operation. This scheme helps to support and encourage entrepreneurship and business growth.


The second is the partial tax exemption scheme for companies. Under this scheme, eligible companies, regardless of their size or industry, can enjoy a partial exemption on their chargeable income. The scheme offers a reduced tax rate on the chargeable income, resulting in a lower tax liability for the company and allocate more resources towards their growth and development.



1. Tax Exemption for New Start-Up Companies


For qualifying companies in Singapore, the tax exemptions available for their first three consecutive Years of Assessment (YAs) are as follows:


YA 2020 onwards

1. 75% exemption on the first $100,000 of chargeable income

2. A further 50% exemption o the next $100,000 of chargeable income

 Start up company tax exemption YA 2020 onwards

The maximum exemption is $125,000 for each Year of Assessment (YA)


YA 2019 and before

1. Full exemption on the first $100,000 of chargeable income

2. A further 50% exemption on the next $200,000 of chargeable income

 Start up company tax exemption YA 2019 and before

The maximum exemption is $200,000 for each Year of Assessment (YA)




2. Partial Tax Exemption Scheme for Companies


The tax exemptions for qualifying companies are as follows:


YA 2020 onwards

1. 75% exemption on the first $10,000 of chargeable income; and

2. A further 50% exemption on the next $190,000 of chargeable income.

Company partial tax exemption YA 2020 onwards

The maximum exemption is $102,500 for each Year of Assessment (YA)


YA 2019 and before

1. 75% exemption on the first $10,000 of chargeable income; and

2. A further 50% exemption on the next $290,000 of chargeable income.

Company partial tax exemption YA2019 and before

The maximum exemption $152,500 for each Year of Assessment (YA)


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