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Corporate Tax Rates

Frequently Asked Questions

  1. What benefits does the Singapore Government give to a newly set up Company?
  2. Are there any conditions to qualify to these exemptions?
  3. What is the tax Rates for Companies for Year of Assessment 2009 and for those who do not qualify for the New Start up exemption rates?
  4. What is the Stamp Duty Tax for Property Transfer in Singapore?
  5. What are the capital gain tax rates in Singapore?
  6. Are there any Tax Incentives for foreign companies to set up in Singapore?
  7. Does Singapore have any value added tax or General sales Tax (GST)?

Answers

  1. What benefits does the Singapore Government give to a newly set up Company?

    To encourage local entrepreneurship, Singapore Government has declared a full tax exemption for newly incorporated companies.

    NEW START UP COMPANIES

    Full tax exemption is granted on the first $100,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively (%)
    First S$100,000 chargeable profit Nil
    S$100,001 to S$300,000 8.5
    Thereafter a Flat Rate of 17

  2. Are there any conditions to qualify to these exemptions?

    Note: *A qualifying new company must fulfill the following conditions:

    a) It is incorporated in Singapore;
    b) It is a tax resident of Singapore for that Year of Assessment;
    c) It has no more than 20 shareholders throughout the basis period relating to that Year of Assessment;
    d) All its shareholders are individuals throughout the basis period relating to that Year of Assessment OR start-up companies with corporate shareholders can qualify for the existing Start-Up Tax Exemption Scheme, provided that there is at least one individual shareholder of minimum 10% shareholding.

    *A company is resident in Singapore if the control and management of its business is exercised in Singapore.

  3. What is the tax Rates for Companies for Year of Assessment 2009 and for those who do not qualify for the New Start up exemption rates?

    Amount of chargeable income Effective tax rate
    First S$10,000 4.5%
    Next S$290,000 8.5%
    In excess of S$300,000 17%

  4. What is the Stamp Duty Tax for Property Transfer in Singapore?

    Value of property Rate (%)
    First S$180,000 1.0
    Next S$180,000 2.0
    Thereafter 3.0

  5. What are the capital gain tax rates in Singapore?

    There is no tax in Singapore on Capital Gain.

  6. Are there any Tax Incentives for foreign companies to set up in Singapore?

    To encourage foreign capital inflow into Singapore, there are tax incentives provided to various industries namely in the form of reduced corporate tax rates.

    Finance & Treasury Centre Co. 10%
    Fund Manager 10%/exempt
    Headquarters Co. 10%
    International Commodity Trader 10%
    Offshore Leasing 10%
    Oil Trader 10%
    Securities Company 10%/exempt
    Trustee Company 10%
    Arts & Antique Dealers 10%
    Asian Currency Unit 10%/exempt
    Insurance & Re-insurance Co. 10%/exempt
    Members of Commodity Futures Exchange 10%
    Pioneer/Incentive Co. exempt/various
    Financial Sector Incentive Co. 5%/10%
    Cyber Trader 10%
    Commodity Derivatives Trader (New) 5%

  7. Does Singapore have any value added tax or General sales Tax (GST)?

    The GST rates in Singapore is 7%.