Corporate Tax

Singapore Corporate Tax

New Startup Companies Pay Zero Tax

Singapore government has declared a full tax exemption for newly incorporated companies.

To qualify, a new company must:

• Be incorporated in Singapore
• Be a tax resident of Singapore for that Year of Assessment
• Have no more than 20 shareholders throughout the basis period relating to that Year of Assessment
• All its shareholders are individuals throughout the basis period relating to that Year of Assessment OR start-up companies with corporate shareholders can qualify for the existing Start-Up Tax Exemption Scheme, provided that there is at least one individual shareholder of minimum 10% shareholding.

Corporate tax rates for companies that do not qualify for the new startup tax exemption

Facts on Singapore Corporate Tax

• Corporate tax is currently capped at 18% for 2009. As of 2010, corporate tax will be reduced to 17%.
• Singapore has a single-tier corporate income tax system, hence no further taxation on dividends paid out to shareholders.
• There is no capital gain tax in Singapore.

Tax Return Filing

The filing deadline for corporate income tax return is 31 October. Documents to be submitted are:

• Tax computation
• Directors' Report
• Form C

Audit Exemption
There is a provision of audit exemption for small businesses. A company that meets one of the following conditions will be exempted from a tax audit.

• It is exempt private company, which means it has no more than 20 shareholders and its shares are held by individuals only.
• Its annual revenue is less than S$5 million
• It's a dormant company