# What is Corporate Income Tax (Singapore)?

Country: Singapore

Singapore taxes resident companies at a flat rate of 17% on chargeable income. New companies benefit from the Start-Up Tax Exemption (SUTE), and all qualifying companies can access Partial Tax Exemption.

## Current rate (Year of Assessment (preceding-year basis))

17% flat rate

## Example

A company with a financial year ending 31 December 2024 files for Year of Assessment 2025. Chargeable income of S$200,000 would attract 17% tax before any exemptions.

## How Corporate Income Tax (Singapore) works in Singapore

**Singapore Corporate Income Tax (CIT) Overview**

Singapore levies corporate income tax at a flat rate of 17% on the chargeable income of resident and non-resident companies for income accruing in or derived from Singapore. The tax system operates on a preceding-year basis: income earned in the calendar year 2024 is assessed in Year of Assessment (YA) 2025.

**Tax Exemption Schemes**

Two main exemption schemes reduce the effective tax rate for most companies:

1. Start-Up Tax Exemption (SUTE): Available to newly incorporated Singapore companies for their first three consecutive YAs. Provides 75% exemption on the first S$100,000 of chargeable income, and 50% exemption on the next S$100,000. Maximum exemption of S$125,000 per YA.

2. Partial Tax Exemption (PTE): Available to all other qualifying companies. Provides 75% exemption on the first S$10,000 of chargeable income, and 50% exemption on the next S$190,000. Maximum exemption of S$102,500 per YA.

**YA 2025 CIT Rebate**

For YA 2025, the government announced a 50% Corporate Income Tax Rebate (capped at S$40,000). Companies that employed at least one local employee in 2024 and had active business operations receive a minimum benefit of S$2,000 as a cash grant, even if they have no CIT payable.

**Filing Obligations**

Companies must file: (a) Estimated Chargeable Income (ECI) within 3 months of their financial year-end, (b) the annual tax return (Form C, C-S, or C-S Lite) by 30 November of the YA.

Form C is the full return for companies that do not qualify for C-S. Form C-S is for companies with annual revenue of S$5 million or below, deriving only Singapore-sourced income, and taxed at the standard rate. Form C-S Lite is a further simplified version for companies with revenue not exceeding S$200,000.

**Capital Allowances**

Capital expenditure on plant and machinery qualifies for capital allowances. Companies can elect the accelerated one-year write-off option for qualifying assets (subject to a combined cap of S$30,000 per YA), or the standard three-year write-off (one-third per year). Low-value assets costing S$500 or less can be fully expensed in the year of purchase.

Source: https://www.iras.gov.sg/taxes/corporate-income-tax

## Related terms

- [SUTE (Start-Up Tax Exemption)](https://accounts-os.com/sg/glossary/sute-sg)
- [ECI (Estimated Chargeable Income)](https://accounts-os.com/sg/glossary/eci-sg)
- [Form C / C-S / C-S Lite](https://accounts-os.com/sg/glossary/form-c-sg)
- [Private Limited Company (Pte Ltd)](https://accounts-os.com/sg/glossary/pte-ltd-sg)