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Hero Introduction
Singapore Corporate Tax Calculator
Calculate Singapore corporate tax using the 17% headline rate with PTE and SUTE exemptions.
Singapore's headline corporate tax rate is 17 percent, applied to chargeable income after deductions. While the headline rate is modest by global standards, the effective rate for most small and medium businesses is meaningfully lower due to the Partial Tax Exemption available on the first SGD 200,000 of chargeable income each year. Newly incorporated qualifying companies can additionally claim the Start-Up Tax Exemption (SUTE) for their first three years, further reducing the effective tax burden during the critical early years of operation.
This calculator estimates Singapore corporate tax based on annual revenue, business expenses, and whether the company qualifies for the SUTE start-up regime. The Inland Revenue Authority of Singapore (IRAS) administers Singapore's corporate tax system through the Income Tax Act. Singapore taxes companies on a single-tier basis, meaning corporate tax paid by the company on profits is the final tax. Dividends distributed to shareholders are not taxed again at the shareholder level.
Tax Rates and Exemptions
|
Item |
Detail |
|---|---|
|
Headline corporate tax rate |
17 percent on chargeable income |
|
Partial Tax Exemption (PTE) |
75 percent exemption on first SGD 10,000 of chargeable income, 50 percent exemption on next SGD 190,000 |
|
Start-Up Tax Exemption (SUTE) |
75 percent exemption on first SGD 100,000 of chargeable income, 50 percent exemption on next SGD 100,000 (first 3 YAs only) |
|
SUTE eligibility |
Incorporated in Singapore, tax resident in Singapore for that YA, no more than 20 shareholders all individuals or one individual holding minimum 10 percent of ordinary shares |
Worked Examples
Example 1: New start-up qualifying for SUTE
|
Annual revenue |
SGD 500,000 |
|
Business expenses |
SGD 350,000 |
|
Chargeable income |
SGD 150,000 |
|
SUTE exemption applied |
75% on first SGD 100,000 (SGD 75,000 exempt) + 50% on next SGD 50,000 (SGD 25,000 exempt) = SGD 100,000 exempt |
|
Taxable income after SUTE |
SGD 50,000 |
|
Corporate tax (17%) |
SGD 8,500 (effective rate 5.67%) |
Example 2: Established SME using Partial Tax Exemption
|
Annual revenue |
SGD 2,000,000 |
|
Business expenses |
SGD 1,400,000 |
|
Chargeable income |
SGD 600,000 |
|
PTE exemption |
75% on first SGD 10,000 (SGD 7,500) + 50% on next SGD 190,000 (SGD 95,000) = SGD 102,500 exempt |
|
Taxable income after PTE |
SGD 497,500 |
|
Corporate tax (17%) |
SGD 84,575 (effective rate 14.10%) |
Example 3: Larger company beyond PTE band
|
Annual revenue |
SGD 10,000,000 |
|
Business expenses |
SGD 7,000,000 |
|
Chargeable income |
SGD 3,000,000 |
|
PTE exemption |
SGD 102,500 (max under PTE) |
|
Taxable income |
SGD 2,897,500 |
|
Corporate tax (17%) |
SGD 492,575 (effective rate 16.42%) |
