Key Features
Estimated Chargeable Income (ECI)
ECI is the estimate of a company’s taxable income for a financial year, which includes the revenue gained from sales and services. It must be filed with the Inland Revenue Authority of Singapore (IRAS) within 3 months after the end of the company’s financial year in order to give IRAS an estimation of your company’s tax liability.
Annual tax return (Form C/Form C - S)
- Form C: For companies with complex financials
- Form C-S: For companies with simpler and more straightforward financials
Corporate Tax Rate
Singapore’s corporate tax rate is a flat 17%. This means that companies need to pay 17% of their chargeable income to the government. However there are a few allowed exceptions.
Partial Tax Exemption:
In Singapore, you can have a partial tax exemption on the first $200,000 of your chargeable income. The exemption is:
- 75% for the first $10,000 of chargeable income
- 50% of the next $190,000
Start-Up Tax Exemption (SUTE):
- New business owners may be eligible for SUTE. The exemption is
- 75% exemption of the first $100,000 of chargeable income
- 50% exemption for the next $100,000 in the first 3 years of operation
Tax Payment
After submitting the tax return, IRAS issues a Notice of Assessment (NOA) which states how much the company owes. Companies have to pay their tax by the given due date, which is typically within 30 days from when it’s issued. Should a company not be able to pay the full amount all at once, they can also opt for instalment payments.