Singapore’s corporate tax rate for Year of Assessment (YA) 2026 remains flat at 17% of chargeable income — unchanged and still among the most competitive in Asia-Pacific. While the headline rate is 17%, most Singapore companies pay a significantly lower effective rate due to two statutory exemption schemes available to qualifying companies.

Singapore Corporate Tax Rate 2026

The 17% flat corporate tax rate applies to all chargeable income — whether earned by a local SME, a multinational subsidiary, or a foreign company operating through a Singapore branch. Unlike many jurisdictions, Singapore does not have a tiered or progressive corporate tax structure.

Key features of Singapore’s corporate tax system in 2026:

  • Territorial basis: only Singapore-sourced income is generally taxable
  • Foreign-sourced income (dividends, branch profits, service income) remitted to Singapore may be exempt under Section 13(8) of the Income Tax Act 1947 if the foreign jurisdiction’s headline rate is at least 15%
  • No capital gains tax
  • No dividend withholding tax on dividends paid to shareholders under the one-tier tax system

Start-Up Tax Exemption (SUTE)

The SUTE is available to newly incorporated Singapore companies for their first three consecutive YAs. Under SUTE (for YA 2020 onwards):

  • 75% exemption on the first S$100,000 of chargeable income — maximum tax saving of S$12,750
  • 50% exemption on the next S$100,000 — additional saving of S$8,500
  • Total maximum saving: S$21,250 per YA, or approximately S$63,750 over three years

Conditions for SUTE:

  • Company must be incorporated in Singapore
  • Must be a Singapore tax resident for that YA
  • At least one individual shareholder must hold at least 10% of issued ordinary shares — a 100% corporate-held company does not qualify
  • Company must not be an investment holding company or IP licensing company

Foreign founders using a holding company structure should note the individual shareholder condition. See our article on shareholding structures for foreign founders and the SUTE trap for structuring guidance.

Partial Tax Exemption (PTE)

Companies beyond their first three SUTE years, or which do not qualify for SUTE, receive the Partial Tax Exemption:

  • 75% exemption on the first S$10,000 of chargeable income — maximum saving of S$1,275
  • 50% exemption on the next S$190,000 — additional saving of S$16,150
  • Total maximum saving: S$17,425 per YA

Chargeable Income: Key Adjustments

Chargeable income is your company’s accounting profit adjusted for Singapore tax purposes. Key adjustments include:

  • Add back: non-deductible expenses (private expenses, fines, capital expenditure wrongly expensed, depreciation of non-qualifying assets)
  • Deduct: capital allowances on qualifying plant and machinery (Section 19/19A), Section 14 business deductions, IPC donations (250% deduction), unutilised losses carried forward
  • Transfer pricing: related-party transactions must be at arm’s length — see our guide on transfer pricing for Singapore companies 2026

ECI Filing: Deadline and Waiver

The Estimated Chargeable Income (ECI) declaration must be filed with IRAS within three months from the end of your financial year. For a 31 December 2025 year-end, ECI is due by 31 March 2026.

A waiver applies if annual revenue is S$5 million or below and ECI is nil. Most dormant companies and early-stage startups with no revenue qualify for this waiver.

Corporate Tax Return: Form C-S and Form C (YA 2026)

The corporate income tax return for YA 2026 is due by 30 November 2026, filed via the IRAS myTax Portal.

Form C-S (Simplified)

Available if your company is incorporated in Singapore, has annual revenue of S$5 million or below, derives only income taxable at 17%, and is not claiming carry-back relief, group relief, investment allowance, or R&D measures.

Form C-S (Lite)

A further simplified form for companies with annual revenue of S$200,000 or below, requiring fewer data fields.

Form C

All other companies file Form C, requiring financial statements, a full tax computation, and supporting schedules. Companies with related-party transactions above the IRAS threshold must also submit transfer pricing documentation.

Year-End Tax Planning for YA 2026

Before your financial year ends, consider whether large capital expenditure should be accelerated for Section 19B one-year write-off, and whether IPC donations should be timed to capture the 250% deduction in the desired YA. For a comprehensive checklist, see our guide on Singapore SME tax planning before year-end 2026. For IP-intensive businesses, the Singapore IP tax incentives guide covers Section 14C, 14D and the IP Development Incentive.

Corporate Tax Payment

Tax payable is due within one month of the Notice of Assessment (NOA). GIRO is recommended as it allows instalment payment plans. A 5% late payment penalty applies if unpaid by the due date.

How Raffles Corporate Services Can Help

Our team handles ECI preparation and filing, Form C-S and Form C preparation with tax computations, IRAS correspondence, and year-end tax planning for Singapore companies at every stage. Contact Raffles Corporate Services at [email protected] or call, SMS, or WhatsApp +65 8501 7133.

— The Editorial Team, Raffles Corporate Services