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Singapore's tax structure favours enterprise and business, with one of the lowest corporate tax rates in the world. A host of tax schemes and incentives are in place to help companies grow their businesses.

Scope of Income Tax

Singapore taxes on a territorial basis. A company, regardless of whether it is a local or a foreign company, will be taxed on its:

• income accruing in or derived from Singapore; or
• income earned outside Singapore and received in Singapore;

Key Features

Corporate income tax	17%
Capital Gains	Not taxable
Withholding Tax: Dividends Interest Royalties Certain other payments to non-residents e.g. technical assistance fees & management fees	Not taxable 15% 10% Corporate income tax rate
Carry forward of Net Operating Losses (years)	Unlimited
Carry back of Net Operating Losses (years)	Companies can carry back losses of up to S$100,000 from one year back, with effect from year of assessment 2006

Singapore Corporate Tax Rate (YA 2010 onwards)

To encourage local entrepreneurship, Singapore Government has declared a full tax exemption for qualifying, newly incorporated companies as follows:

Full tax exemption is granted on the first $100,000 of Normal Chargeable Income for qualifying new companies for the first 3 consecutive years of assessment (YAs).

First $100,000 – 100% exemption	Nil
$100,001 to $300,000 – 50% exemption	8.5%
Thereafter a Flat Rate of	17%