Short answer: Singapore taxes company profits at 17%, but the partial tax exemption, or the start-up tax exemption for a qualifying company's first three Years of Assessment, lowers the effective rate on the first S$200,000 of chargeable income. For YA 2026, IRAS also gives a CIT Rebate of 50% of tax payable, and a S$2,000 Cash Grant to active companies with at least one local employee in 2025, capped at S$40,000 in total. Enter your chargeable income below for a step-by-step estimate.
Frequently asked questions
What is the YA 2026 CIT Rebate?
IRAS enhanced the YA 2026 CIT Rebate to 50% of corporate tax payable. Active companies that made CPF contributions for at least one local employee (excluding shareholder-directors) in 2025 receive a S$2,000 CIT Rebate Cash Grant. The rebate and grant together are capped at S$40,000, and the grant is deducted from the rebate.
How does the partial tax exemption work?
75% of the first S$10,000 of normal chargeable income and 50% of the next S$190,000 are exempt, so up to S$102,500 is exempt each year.
Who qualifies for the start-up tax exemption?
A new company incorporated and tax resident in Singapore, with no more than 20 shareholders throughout the basis period (all individuals, or at least one individual holding at least 10% of the ordinary shares). Investment holding and property development companies do not qualify. It gives 75% exemption on the first S$100,000 and 50% on the next S$100,000 for the first 3 YAs.
Do I deduct the CIT Rebate when filing?
No. Report chargeable income without the rebate. IRAS computes the rebate automatically in the assessment, and the Cash Grant appears only in the final tax payable on the Notice of Assessment.
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Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This tool gives general information only and is not legal advice.
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