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For companies

A company is taxed at a flat rate on its chargeable income regardless of whether it is a local or foreign company.

The tax rates and tax exemption / rebate for each Year of Assessment (YA) are as follows:

Year of Assessment (YA)
Tax rate
Tax exemption / rebate
2010 onwards

17%

Partial tax exemption and tax exemption scheme for new start-up companies

Companies will continue to enjoy the partial tax exemption scheme and tax exemption scheme for new start-up companies as provided in YA 2008 and YA 2009.

In addition, with effect from YA 2010, the tax exemption scheme for new start-up companies will be extended to include companies limited by guarantee, subject to the same conditions.

Corporate Income Tax (CIT) Rebate and SME Cash Grant 

For YA 2011, companies will be granted a 20% CIT rebate or a 5% SME cash grant, whichever is the higher amount. Click here for more information.

2008 and 2009
18%

Partial tax exemption for companies
Effective from YA 2008, a partial tax exemption is given to companies on normal chargeable income* (excluding Singapore franked dividends) of up to $300,000 as follows:

Exempt amount

First  $  10,000 @ 75% = $    7,500
Next  $290,000 @ 50% = $145,000
Total $300,000      $152,500

Tax exemption scheme for new start-up companies

Since YA 2005, a qualifying company can claim for full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for its first three consecutive YA.

Effective from YA 2008, a further 50% exemption is given on the next $200,000 on a qualifying company's normal chargeable income* (excluding Singapore franked dividends).

The tax exemption for new start-up companies on chargeable income of up to $300,000 is as follows:

Exempt amount

First  $100,000 @ 100% = $100,000
Next  $200,000 @  50% = $100,000
Total $300,000      $200,000

A company that does not qualify for a tax exemption for new start-up companies will be given partial tax exemption.

2005 to 2007
20%

Partial tax exemption for companies

For YA 2005 to YA 2007, a partial tax exemption is given to companies on normal chargeable income* (excluding Singapore franked dividends) of up to $100,000 as follows:

Exempt amount

First  $ 10,000 @ 75% = $  7,500
Next  $ 90,000 @ 50% = $45,000
Total $100,000      $52,500

Tax exemption scheme for new start-up companies

Effective from YA 2005, a qualifying company can claim for a full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for its first three consecutive YA.

The tax exemption on the $100,000 chargeable income is as follows:

Exempt amount

First $100,000 @ 100% = $100,000

A company that does not qualify for tax exemption for new start-up companies will be given partial tax exemption.

2003 and 2004
22%

Partial tax exemption for companies

For YA 2003 and YA 2004, the tax exempt amount is the same as that for YA 2005 to YA 2007.

2002
24.5%

Partial tax exemption for companies

Effective from YA 2002, a partial tax exemption is given to companies on normal chargeable income* (excluding Singapore franked dividends) of up to $100,000. The partial tax-exempt amount is the same as that for YA 2005 to YA 2007.

Tax rebate

For YA 2002, a tax rebate of 5% on the gross tax payable (excluding tax on Singapore dividends and tax on income subject to final withholding tax) is given.

2001
25.5%

Tax rebate

For YA 2001, a tax rebate on the gross tax payable (excluding tax on Singapore dividends and tax on income subject to final withholding tax) is given.

The tax rebate is computed as follows:

50% on first tax payable of $25,500
5% on balance of tax payable in excess of $25,500 (i.e. gross tax payable less $25,500)

* Normal chargeable income refers to income to be taxed at the prevailing corporate tax rate

FAQs


Q2. My company's chargeable income before tax exemption for YA 2011 is $450,000. My company qualifies for the tax exemption scheme for new start-up companies in YA 2011. Its revenue for YA 2011 is $800,000. How do I compute the tax exempt amount and tax payable for YA 2011?

 
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Last Updated on 12 July 2011

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