Tax Rates
Tax Authority
Inland Revenue Authority of Singapore
Website: www.iras.gov.sg
Tax year
1 January – 31 December
The accounting period ending other than 31 December is acceptable. Profits arising in an accounting period ending other than 31 December are not apportioned.
Income tax rates - from YA 2017 to YA 2024
Non-resident individuals: 22% flat rate; employment income at the higher of 15% or the resident rate.
Corporate tax rate: 17%
| Resident individuals: | |
| Taxable income (S$) | Tax |
| 0-20,000 | Nil |
| 20000-30,000 | 2% on excess over S$20,000 |
| 30,000–40,000 | S$200 + 3.5% on excess over S$30,000 |
| 40,000–80,000 | S$550 + 7% on excess over S$40,000 |
| 80,000–120,000 | S$3,350 + 11.5% on excess over S$80,000 |
| 120,000–160,000 | S$7,950 + 15% on excess over S$120,000 |
| 160,000–200,000 | S$13,950 + 18% on excess over S$160,000 |
| 200,000–240,000 | S$21,150 + 19% on excess over S$200,000 |
| 240,000–280,000 | S$28,750 + 19.5% on excess over S$240,000 |
| 280,000–320,000 | S$36,550 + 20% on excess over S$280,000 |
| Over 320,000 | S$44,550 + 22% on excess over S$320,000 |
Tax Exemption Scheme for New Start-up Companies
The tax exemption scheme for new start-up companies was introduced under Section 43 of the Income Tax Act 1947 in the Year of Assessment (YA) 2005 to support entrepreneurship and to grow our local enterprises.
It was announced in Budget 2018 that the tax exemption under the scheme would be revised with effect from YA 2020, as other support for companies to build their capabilities have been strengthened.
The tax exemptions for qualifying companies for their first 3 consecutive YAs are as follows:
| YA 2020 onwards | YA 2019 and before |
| 75% exemption on the first $100,000 of normal chargeable income*; and | Full exemption on the first $100,000 of normal chargeable income*; and |
| A further 50% exemption on the next $100,000 of normal chargeable income*. | A further 50% exemption on the next $200,000 of normal chargeable income*. |
* Normal chargeable income refers to income to be taxed at the prevailing Corporate Income Tax rate of 17%.
This exemption scheme applies to qualifying companies only for their first 3 consecutive YAs. From the fourth YA onwards, companies can enjoy the partial tax exemption. Learn how to determine the first 3 YAs of your company.
GST
GST at a rate of 7% is levied on most goods and services.
Capital gains tax (CGT)
No capital gains tax as such, but capital gains may be construed or deemed to be income in nature and subject to income tax if derived from activities of a trade or business carried on in Singapore.
Losses
Trading losses may be offset against all income received in the same accounting period or carried forward indefinitely and offset against future trading profits, subject to the satisfaction of a substantial shareholding test. Losses up to S$100,000 incurred in a current year may be carried back one year.
Treaty network
79 treaties in effect
Withholding tax (non-residents)
| Dividends | Nil |
| Interest | 15% |
| Royalties | 10% |
Group consolidation
The losses and unutilised capital allowances of one company may be utilised for tax purposes by another company in the same group. For group relief purposes, a group refers to a Singapore incorporated parent and all its Singapore incorporated subsidiaries.
CFC rules
None
Thin capitalisation restrictions
None
Currency
Singapore dollar - S$
Exchange controls
None