Singapore Taxes 2026: Corporate Tax, Income Tax, GST and International Planning
Singapore taxes company profits at 17% and reduces the burden significantly through partial exemptions – to an effective rate below 9% for smaller profits. Capital gains, dividends and inheritances are tax-free, and personal income tax peaks at 24%. At the same time, the city-state has tightened its rules: since 2024 gains from the sale of foreign assets without substance can be taxable, and since 2025 the 15% global minimum tax applies to large groups. This guide reflects the 2026 position and what German and Swiss entrepreneurs need to consider.
- ✛Corporate tax is 17%. With the partial exemption, a company pays about SGD 16,600 (8.3%) on SGD 200,000 of profit; a qualifying start-up pays only SGD 12,750 (6.4%) in its first three years.
- ✛Foreign income is only taxable when remitted to Singapore; dividends, branch profits and service income can be exempt if they were subject to a headline rate of at least 15% abroad.
- ✛There is no capital gains tax and no withholding tax on dividends. Since 2024, however, section 10L taxes gains from the sale of foreign assets by companies without substance in Singapore.
- ✛Income tax is progressive up to 24% from SGD 1 million. Non-residents pay 15% on employment income or the resident rates if higher.
- ✛Because of the partial exemption, small companies bear less than 15% tax. German shareholders must therefore check CFC rules for passive income.
Singapore's tax system at a glance
Singapore taxes on a modified territorial basis: taxable are income arising in Singapore and foreign income remitted to or deemed received in Singapore. Foreign income that stays abroad is generally not taxable. The Inland Revenue Authority of Singapore (IRAS) handles almost all procedures digitally through its myTax portal.
| Tax | Rate 2026 | Note |
|---|---|---|
| Corporate income tax | 17% | effectively lower through partial and start-up exemptions |
| Income tax for residents | 0–24% | tax-free up to SGD 20,000, 24% from SGD 1m |
| Goods and Services Tax (GST) | 9% | since 1 January 2024, registration from SGD 1m turnover |
| Withholding tax on dividends | 0% | one-tier system |
| Capital gains, inheritance and wealth tax | none | exception: section 10L for foreign disposals without substance |
| Property tax and stamp duty | variable | mainly on property and share transfers |
The Ministry of Finance sets tax policy and justifies incentives with the aim of attracting businesses with real substance. A comparison of Asian locations is in our article on Hong Kong, Pillar Two and digital income.
Corporate tax: 17% and the exemptions
A company is tax resident in Singapore if it is controlled and managed there, i.e. the board takes its strategic decisions in Singapore. Only resident companies receive a certificate of residence and thus access to tax treaties.
Partial exemption for all companies
| Chargeable income | Exempt | Effective rate on the band |
|---|---|---|
| first SGD 10,000 | 75% | 4.25% |
| next SGD 190,000 | 50% | 8.5% |
| above SGD 200,000 | 0% | 17% |
Start-up exemption in the first three years
| Chargeable income | Exempt | Effective rate on the band |
|---|---|---|
| first SGD 100,000 | 75% | 4.25% |
| next SGD 100,000 | 50% | 8.5% |
| above SGD 200,000 | 0% | 17% |
The start-up exemption applies to the first three years of assessment of a newly incorporated Singapore-resident company with no more than 20 shareholders, at least one of whom is an individual holding at least 10%. Investment and property holding companies are excluded.
Worked example for SGD 200,000 of profit: with the partial exemption, SGD 102,500 is exempt and 17% applies to SGD 97,500 – tax of about SGD 16,575 (8.3%). With the start-up exemption, SGD 125,000 is exempt and tax is SGD 12,750 (6.4%). The frequently quoted figure of SGD 25,000 is wrong.
Singapore also regularly grants a corporate income tax rebate. For year of assessment 2025 it was 50% of tax, capped at SGD 40,000, with a minimum of SGD 2,000 for companies with local employees. The Singapore Budget 2026 again provided a rebate for year of assessment 2026.
Foreign income, dividends and capital gains
Foreign-sourced income exemption
Under section 13(8) of the Income Tax Act, foreign dividends, branch profits and service income remitted to Singapore are tax-exempt if three conditions are met:
- 1The headline tax rate in the source state is at least 15%.
- 2The income was subject to tax in the source state; for dividends, taxation of the underlying profits is sufficient.
- 3IRAS is satisfied that the exemption is beneficial to the company.
Dividends and withholding taxes
Singapore has a one-tier system: the company pays tax on its profit and the distribution is tax-free for the shareholder. There is no withholding tax on dividends to non-residents. The following rates apply to other payments abroad, often reduced by treaties:
| Payment to non-residents | Withholding tax |
|---|---|
| Dividends | 0% |
| Interest | 15% |
| Royalties | 10% |
| Technical and management services | 17% (corporate tax rate) |
| Directors' fees | 24% |
Capital gains and section 10L
Capital gains are generally tax-free. Under section 13W, gains on the sale of shares are safely exempt if at least 20% was held for at least 24 months. Since 1 January 2024, however, section 10L taxes gains from the sale of foreign assets by entities of an international group that lack adequate economic substance in Singapore. Pure holding companies need at least management by qualified staff in Singapore.
Personal income tax
An individual is tax resident if they stay or work in Singapore for at least 183 days in a calendar year. Special rules over two or three consecutive years apply to employees. Residents pay progressive rates on their Singapore income. Foreign income remitted to Singapore by individuals is generally tax-free – unless it flows through a partnership.
| Chargeable income (from YA 2024) | Marginal rate |
|---|---|
| up to SGD 20,000 | 0% |
| SGD 20,001 – 40,000 | 2% or 3.5% |
| SGD 40,001 – 80,000 | 7% |
| SGD 80,001 – 160,000 | 11.5% or 15% |
| SGD 160,001 – 320,000 | 18% to 20% |
| SGD 320,001 – 500,000 | 22% |
| SGD 500,001 – 1,000,000 | 23% |
| above SGD 1,000,000 | 24% |
Non-residents pay a flat 15% on employment income or the resident rates if higher. Directors' fees and most other income are taxed at 24%. Anyone working in Singapore for up to 60 days a year is generally exempt on their employment income. Capital gains, Singapore dividends and inheritances also remain tax-free for individuals.
Moving to Singapore requires a pass, such as an Employment Pass (minimum salary since 2025 SGD 5,600 per month, SGD 6,200 in financial services), an EntrePass for founders or a ONE Pass for top earners. The tax side of leaving your home country is explained in our articles on emigrating and flag theory. SWICOR supports the move under residency abroad.
Goods and Services Tax (GST)
GST is Singapore's VAT. The rate was raised in two steps and has been 9 per cent since 1 January 2024.
- ✛Registration requirement: if taxable turnover in the past twelve months exceeds SGD 1m or is expected to exceed it in the next twelve months. Voluntary registration is possible but binding for two years.
- ✛Standard-rated (9%): most goods and services in Singapore
- ✛Zero-rated (0%): exports and international services, with input tax recovery
- ✛Exempt: financial services, sale and lease of residential property, investment precious metals and digital payment tokens – without input tax recovery
- ✛Overseas vendors (overseas vendor registration): since 2020 for digital services, since 2023 also for remote services and low-value goods up to SGD 400 to consumers, if global turnover exceeds SGD 1m and B2C supplies to Singapore exceed SGD 100,000
GST returns are generally filed quarterly. For new GST registrations, e-invoicing via the Peppol network (InvoiceNow) is being phased in: since November 2025 for newly incorporated companies registering voluntarily, and from April 2026 for all new voluntary registrants.
Tax incentives for specific activities
The Economic Development Board and the Monetary Authority of Singapore grant incentives on application. They require substance, investment and local jobs and are usually out of reach for small structures.
| Programme | Benefit | Target group |
|---|---|---|
| Pioneer Certificate (PC) | tax exemption on qualifying profits, up to 15 years | new technologies and manufacturing |
| Development and Expansion Incentive (DEI) | 5% or 10% on incremental profits | expanding regional headquarters and functions |
| IP Development Incentive (IDI) | 5% or 10% on qualifying IP income (nexus approach) | own R&D in Singapore |
| Global Trader Programme | 5% or 10% on qualifying trading profits | commodity and goods trading |
| Finance and Treasury Centre | 8% on qualifying treasury income | group treasury |
| Financial Sector Incentive | 10% (fund management) to 13.5% (standard tier) | banks, asset managers, financial services |
| Fund exemptions 13O, 13U | exemption of certain fund income | family offices and funds with minimum assets |
Under the Enterprise Innovation Scheme (since year of assessment 2024), companies can deduct up to 400% of expenditure on R&D, training, IP registration and innovation, generally up to SGD 400,000 per category. Smaller companies can opt for part of it as a cash payout instead.
Pillar Two: global minimum tax since 2025
Singapore implemented the global minimum tax through the Multinational Enterprise (Minimum Tax) Act 2024. For financial years beginning on or after 1 January 2025, the income inclusion rule (IIR) and a domestic top-up tax apply. The undertaxed profits rule (UTPR) has not yet been introduced.
- ✛In scope: groups with consolidated revenue of at least EUR 750m
- ✛Consequence: profits in Singapore bear at least 15% tax, even if an incentive provides a lower rate
- ✛Offset: with the Refundable Investment Credit (since 2024), Singapore supports investment with up to 50% of qualifying expenditure – designed to be compatible with Pillar Two
- ✛SMEs and entrepreneurs: nothing changes for them; the partial and start-up exemptions remain
KPMG's analysis of the Budget 2026 measures shows that corporate taxation remains stable. Other changes mainly concern the carbon tax, which rose from SGD 25 to SGD 45 per tonne in 2026 and is set to reach SGD 50 to 80 by 2030.
Transfer pricing and documentation
Transactions between related parties must be at arm's length (section 34D). The IRAS Transfer Pricing Guidelines follow the OECD guidelines and accept the usual methods: comparable uncontrolled price, resale price, cost plus, transactional net margin and profit split.
- ✛Documentation requirement: for revenue above SGD 10m or if it already applied in the previous year, where related-party transactions exceed set thresholds
- ✛Timing: documentation must be in place by the tax return filing date and submitted within 30 days on request
- ✛Surcharge: 5% on any transfer pricing adjustment, whether or not additional tax is payable; fines of up to SGD 10,000 for missing documentation
- ✛Country-by-country reporting: for Singapore-resident ultimate parent entities with revenue of SGD 1.125bn or more
- ✛Advance pricing arrangements: binding advance agreements with IRAS are possible
Double tax treaties
Singapore has concluded comprehensive double tax treaties with more than 100 states, including Germany, Austria, Switzerland, the UK, China, India and Indonesia. There is no comprehensive treaty with the US. Treaty benefits require a certificate of residence, which only companies controlled and managed in Singapore receive. Through the multilateral instrument (MLI), many treaties include a principal purpose test.
Substance and incorporation requirements
Under the Companies Act, a private limited company (Pte. Ltd.) must meet these requirements:
- ✛at least one director ordinarily resident in Singapore – a Singapore citizen, permanent resident or Employment Pass or EntrePass holder
- ✛a company secretary within six months of incorporation
- ✛a registered office address in Singapore
- ✛at least one shareholder and minimum capital of SGD 1
- ✛a register of beneficial owners and annual filing with ACRA
This alone is not enough for tax residence, bank accounts and protection against section 10L. Banks and IRAS expect board decisions in Singapore, qualified staff and adequate local expenditure. SWICOR provides a local director under board and director and the business address under registered address service.
Holding and IP structures
As a holding location, Singapore offers tax-free Singapore dividends, the foreign-sourced income exemption for foreign dividends, the section 13W exemption for disposal gains and no withholding tax on distributions. Real substance is a prerequisite; otherwise section 10L and the denial of treaty benefits abroad apply. For businesses planning company formation in Georgia or in other jurisdictions, a Singapore holding can hold the shareholding – provided the subsidiary's withholding tax and the rules of the country of residence fit.
For IP structures, the nexus approach applies: the reduced rate under the IP Development Incentive is only available for IP developed in Singapore. Royalties paid to non-residents are subject to 10% withholding tax, which many treaties reduce. A comparison of international structures is in our articles UK LLP vs Hong Kong vs EU and GmbH taxes.
Compliance and deadlines
The World Bank rates Singapore's tax administration as one of the most efficient in the world.
| Obligation | Deadline / rule |
|---|---|
| Estimated chargeable income (ECI) | within 3 months of financial year-end; waived for revenue up to SGD 5m and nil ECI |
| Tax return Form C-S (Lite) | 30 November; C-S up to SGD 5m revenue, C-S Lite up to SGD 200,000 |
| Tax return Form C | 30 November; with financial statements and tax computation |
| Accounts and annual return to ACRA | AGM within 6 months, annual return within 7 months of financial year-end |
| Audit | required, except for small companies (2 of 3: revenue up to SGD 10m, assets up to SGD 10m, up to 50 employees) |
| GST return | generally quarterly, within one month of the period end |
For late payment, IRAS imposes a 5% penalty, rising by 1% per month on continued default. SWICOR handles ongoing accounting and tax filings under accounting and tax.
Singapore compared
| Criterion | Singapore | Hong Kong | UAE | Switzerland |
|---|---|---|---|---|
| Profits tax | 17%, effective from 4.25% | 8.25% up to HKD 2m, then 16.5% | 0% up to AED 375,000, then 9% | around 11.9 to 21% depending on canton |
| Foreign income | only when remitted, exemption possible | territorial with FSIE rules | generally taxable, many exemptions | worldwide, participation relief |
| Personal income tax | up to 24% | up to 15% or 16% | none | up to around 40% |
| Double tax treaties | over 100 | around 50 | over 140 | over 100 |
| Strength | ASEAN access, legal certainty | China access | no income tax | Europe, reputation |
More on the alternatives under company formation in Hong Kong, company formation in Dubai and in our articles on taxes in Switzerland and taxes in Malta. You can open a business account with the documents from our KYC checklist.
Conclusion
In 2026 Singapore remains one of the most attractive tax locations in the world: 17% corporate tax with a much lower effective burden on smaller profits, no tax on capital gains and dividends, income tax of up to 24% and a fast, digital administration. At the same time, the city-state demands more substance than ever – section 10L, Pillar Two and bank practice make pure letterbox companies worthless. German shareholders must also review CFC rules.
SWICOR . SWISS CORPORATE SOLUTIONS supports you with company formation in Singapore, the bank account and international tax optimisation – fully remote and at transparent fixed prices.
Frequently asked questions
How high is corporate tax in Singapore?
The rate is 17%. Through the partial exemption, the effective burden on SGD 200,000 of profit falls to about 8.3%, and with the start-up exemption in the first three years to about 6.4%.
Is foreign income tax-free in Singapore?
Foreign income not remitted to Singapore is generally not taxable. Remitted dividends, branch profits and service income are exempt if they were subject to a headline rate of at least 15% abroad.
Is there capital gains tax in Singapore?
No. Since 2024, however, gains from the sale of foreign assets by group entities without adequate substance in Singapore can be taxable (section 10L).
How high is income tax in Singapore?
For residents it is progressive from 0% to 24%; the top rate applies from SGD 1m. Non-residents pay 15% on employment income or the resident rates if higher.
How high is GST in Singapore?
GST has been 9% since 1 January 2024. Registration is mandatory from annual turnover of SGD 1m.
Do German CFC rules apply to a Singapore company?
Generally not for active income. They can apply to passive income, because the partial exemption reduces the burden of small companies below 15%. If the company is managed from Germany, it is taxable there anyway.
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This article is a general analysis and does not replace individual tax or legal advice. Regulations change; the information reflects the status at the date of publication.