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.
Singapore taxes on a territorial basis. A company, regardless of whether it is a local or a foreign company, will be taxed on its:
|Corporate income tax||17%|
|Capital Gains||Not taxable|
Certain other payments to non-residents e.g. technical assistance fees & management fees
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|
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%|