Your Guide to Singapore Corporate Tax

Posted by John Rikvin on January 24th, 2020

Singapore Corporate Tax Rates for New Startups


New start-up companies are eligible for the Start-up Tax Exemption (SUTE) scheme:

To qualify for Start-up Tax Exemption (SUTE):

  • The company must have no more than 20 individual shareholders
  • For corporate shareholders, one individual must hold at least 10% of the issued shares
  • Property and investment holding companies are not eligible

Single-Tier Income Tax System

Singapore practices a single-tier corporate income tax system. Tax paid by a company on its income is the final tax and all dividends are exempt in the hands of shareholders from further taxation.
The one-tier corporate taxation system was introduced in Budget 2002. Under this system, profits are taxed at the corporate level and this is a final tax. Singapore dividends are tax exempt.

The one-tier corporate taxation system greatly simplifies the tax code and reduces cost of compliance and administration for companies. It removes restrictions on the distribution of dividends from capital gains and this could result in higher dividend payouts for all shareholders.

In addition, the one-tier corporate taxation system has the desirable consequence of allowing the unlimited flow-through of exempt dividends to all tiers of shareholders, regardless of shareholding level.

Read the full version of this article and the tax rates at

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John Rikvin

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John Rikvin
Joined: August 9th, 2019
Articles Posted: 25

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