Corporate Tax Rates, Corporate Income Tax Rebates and Tax Exemption Schemes

Tax Rates, Corporate Income Tax Rebates and Tax Exemption Schemes for both local and foreign companies.

The table below gives an overview of the Corporate Tax Rates, Corporate Income Tax Rebates and Tax Exemption Schemes.

Year of Assessment
(YA)

Tax rate

Tax exemption/ rebate

2013 and subsequent YAs

17%

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

Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below.

Partial tax exemption for companies (from YA 2020)

Chargeable income

% exempted from Tax

Amount exempted from Tax

First $10,000@75%=$7,500
Next $190,000@50%=$95,000
Total $200,000 =$102,500

Tax exemption scheme for new start-up companies (where any of the first 3 YAs falls in or after YA 2020)

Chargeable income

% exempted from Tax

Amount exempted from Tax

First $100,000@75%=$75,000
Next $100,000@50%=$50,000
Total $200,000 =$125,000

Partial tax exemption for companies (YA 2019 and before)

Chargeable income

% exempted from Tax

Amount exempted from Tax

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 (where any of the first 3 YAs falls in or before YA 2019)

Chargeable income

% exempted from Tax

Amount exempted from Tax

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

For more details on the above exemptions, please refer to Common Tax Reliefs That Help Reduce The Tax Bills.

YA 2019

Companies will be granted a 20% Corporate Income Tax Rebate capped at $10,000.

YA 2018

Companies will be granted a 40% Corporate Income Tax Rebate capped at $15,000.

YA 2017

Companies will be granted a 50% Corporate Income Tax Rebate capped at $25,000. 

YA 2016

Companies will be granted a 50% Corporate Income Tax Rebate capped at $20,000.

YA 2013, YA 2014 and 2015

Companies will be granted a 30% Corporate Income Tax Rebate capped at $30,000 for each YA.

Corporate Tax Rates

With effect from Year of Assessment 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.

Corporate Income Tax (CIT) Rebate for YAs 2013 to 2019

The table below summarises the CIT rebate percentage and cap given for companies*.

Year of Assessment (YA)

Corporate Income Tax Rebate

Capped at

201920%$10,000
201840%$15,000
201750%$25,000

2016

50%

$20,000

2013 to 2015

30%

$30,000

The rebate will not apply to income derived by a non-resident company that is subject to final withholding tax.

Companies need not factor in the Corporate Income Tax Rebate when filing the Estimated Chargeable Income and the Income Tax Return (Form C-S/ C) as IRAS will compute it and allow the Rebate automatically.

*includes Registered Business Trusts, non-resident companies that are not subject to a final withholding tax and companies that receive income taxed at a concessionary tax rate.

How the Corporate Income Tax Rebate is Computed

The rebate will be computed on the tax payable after deducting the tax set-offs (e.g. foreign tax credit).

Example (1): Company with no chargeable income

Chargeable income

=

Nil

Tax payable

=

Nil

Corporate Income Tax Rebate does not apply as there is no tax to be paid.

Example (2): Company with income taxable at 17%

YA 2019

Chargeable income (after exempt amount)

$500,000

Tax payable at 17%

$85,000

Less: Corporate Income Tax Rebate ($85,000 x 20%, restricted to cap of $10,000)

$10,000

Net tax payable

$75,000

Example (3): Company with income taxable at 17% and a concessionary rate of 10%

Chargeable income at 10%

$180,000

Chargeable income at 17% (after exempt amount)

$500,000

YA 2019

Gross tax payable
($180,000 x 10% + $500,000 x 17%)

$103,000

Less: Corporate Income Tax Rebate
($103,000 x 20% = $20,600; restricted to cap of $10,000)

$10,000

Net tax payable

$93,000

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