Singapore offers small and medium sized businesses one of the best economic environments and is known to pose the most competitive tax rate in the world. The corporate tax rate in Singapore is pegged at 17%. It is essentially the amount based on the gross income obtained by a business generally during the first year. The Single-Tier Corporate Tax system is especially beneficial for startups.
The city-state follows the Single-Tier Corporate Tax system where the profits are taxed at the corporate level, which is ascertained as the final tax. Additionally, the dividends are exempt from tax. What are the benefits of the single- tier system?
Company formation in Singapore can benefit from the Start-Up Tax Exemption (SUTE). But they have to meet the following criteria. Please note: SUTE is not applicable for property or investment holding companies
Tax rates for companies eligible for full exemption
Tax rates for companies eligible for partial exemption
What are the different tax incentives in Singapore?
Under the Singapore Income Tax Act, a Tax resident company in Singapore enjoys the privilege of being exempt from tax on foreign income; however, this is subject to conditions. Listed below are some of the incentives enjoyed by a Singaporean Company.