Singapore Accounting Questions Answered

What is the corporate tax rate in Singapore?

Singapore's corporate income tax (CIT) rate is a flat 17% on chargeable income. New companies receive the Start-Up Tax Exemption (SUTE) for their first 3 Years of Assessment, and all qualifying companies can claim Partial Tax Exemption. The YA 2025 CIT Rebate adds a further 50% rebate (capped at S$40,000) with a minimum S$2,000 cash grant for companies with local employees.

What is the Start-Up Tax Exemption (SUTE) in Singapore?

The Start-Up Tax Exemption (SUTE) gives newly incorporated Singapore companies 75% tax exemption on the first S$100,000 and 50% exemption on the next S$100,000 of chargeable income for the first 3 consecutive Years of Assessment. The maximum annual tax saving is S$21,250 (S$125,000 x 17%). Eligibility requires: Singapore incorporation, tax residency, no more than 20 shareholders, and at least one individual shareholder holding 10% or more.

Does Singapore have capital gains tax?

No. Singapore does not have a capital gains tax. Gains from the sale of shares, properties, investments, and other capital assets are generally not subject to tax. However, gains from the sale of assets where the seller's intention was to trade (rather than invest) may be classified as trading income and taxed as ordinary income at 17% for companies or up to 24% for individuals.

Is foreign income taxable in Singapore?

Singapore taxes income on a modified territorial basis. Foreign-sourced income is only taxable in Singapore when it is received in or remitted to Singapore. However, foreign dividends, branch profits, and service income may qualify for exemption under section 13(8) (the FSIE exemption) if the income was subject to tax in the source country at a headline rate of at least 15%.

What is CPF and does it apply to foreigners in Singapore?

CPF (Central Provident Fund) is Singapore's mandatory social security savings scheme. CPF contributions are required ONLY for Singapore Citizens (SC) and Permanent Residents (PR). Foreign employees on Employment Pass (EP), S Pass, or Work Permit are NOT subject to CPF. For eligible staff, the employer contributes 17% and the employee contributes 20% for those aged 55 and below, on ordinary wages up to S$7,400 per month.

How do I pay myself as a Singapore company director?

Singapore company directors can pay themselves via: (1) salary (subject to CPF if SC/PR, deductible for the company), (2) director's fees (assessed in the year received, no CPF, deductible), and (3) dividends from retained profits (tax-free at shareholder level under the one-tier system, not deductible by the company). The optimal mix depends on your tax residency, CPF status, and personal financial goals.

When is the corporate tax return due in Singapore?

Singapore companies have two corporate tax filing obligations. First: Estimated Chargeable Income (ECI) must be filed within 3 months of the financial year-end (waiver if revenue is S$5 million or less AND ECI is zero). Second: the annual tax return (Form C-S or Form C) must be filed by 30 November of each Year of Assessment via the IRAS myTax Portal.

What is the ECI filing requirement in Singapore?

Estimated Chargeable Income (ECI) must be filed by all Singapore companies within 3 months of their financial year-end. A filing waiver is available automatically if annual revenue is S$5 million or less AND ECI is zero. Filing early (within 1 month of FYE) qualifies for an interest-free 10-instalment payment plan.

Does Singapore have GST (Goods and Services Tax)?

Yes. Singapore's Goods and Services Tax (GST) is levied at 9% on most supplies of goods and services. The rate increased from 8% to 9% on 1 January 2024. Businesses must register for GST once taxable turnover exceeds S$1 million in a 12-month period. GST-registered businesses file a quarterly F5 return within 1 month of each quarter-end.

How do I set up a company in Singapore?

Incorporating a Singapore private limited company (Pte Ltd) takes approximately 15 minutes online via ACRA's BizFile+ portal. The cost is S$315. Requirements are: at least one director who is ordinarily resident in Singapore, at least one shareholder (can be the same person), minimum S$1 paid-up share capital, and a Singapore registered address.