Singapore Tax System
Singapore operates on a territorial basis. Companies and individuals are taxed primarily on income sourced in Singapore, or foreign-sourced income remitted into Singapore (with significant exemptions).
1. Corporate Income Tax
The headline corporate tax rate is a flat 17%. However, very few companies actually pay an effective rate of 17% due to generous exemptions.
- Startup Tax Exemption (SUTE): New qualifying companies get a 75% exemption on the first S$100,000 of normal chargeable income, and a 50% exemption on the next S$100,000.
- Partial Tax Exemption (PTE): All other companies receive a 75% exemption on the first S$10,000, and a 50% exemption on the next S$190,000.
Read the deep dive on Corporate Tax & Exemptions
2. Goods and Services Tax (GST)
GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore.
- Current Rate: 9% (As of Jan 1, 2024).
- Registration Threshold: Mandatory if your taxable turnover exceeds S$1 million at the end of the calendar year, or if you expect it to exceed S$1 million in the next 12 months.
Read the guide on GST Registration
3. Personal Income Tax
Singapore's personal income tax rates for resident taxpayers are progressive.
- Top Marginal Rate: 24% (for income above S$1,000,000, effective from YA 2024).
- Tax Residency: You are a tax resident if you reside in Singapore, or are physically present/exercising employment in Singapore for 183 days or more in a calendar year.
Non-residents are taxed at a flat rate of 15% to 24% on employment income, or the progressive resident rate, whichever yields a higher tax amount.