How is a Singapore company taxed on its profits?
Singapore taxes company profits on a territorial basis with a single headline corporate rate, and dividends paid to shareholders are not taxed again in the shareholder's hands. Foreign income can be taxable when it is received in Singapore, subject to the exemptions IRAS publishes.
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How it works
Companies file an estimate of chargeable income after the financial year end and then the full return, both through IRAS. Start-up and partial exemptions, capital allowances and loss rules affect the amount actually payable, and the current parameters are published rather than negotiated.
Commonly mixed up with
The headline rate is often read as the effective rate. Exemptions and allowances mean many companies pay less than the headline figure.
How is a Singapore company taxed on its profits?
| Knowledge, Singapore | Business and finance |
|---|---|
| Short answer | Singapore taxes company profits on a territorial basis with a single headline corporate rate, and dividends paid to shareholders are not taxed again in the shareholder's hands. Foreign income can be taxable when it is received in Singapore, subject to the exemptions IRAS publishes. |
| How it works | Companies file an estimate of chargeable income after the financial year end and then the full return, both through IRAS. Start-up and partial exemptions, capital allowances and loss rules affect the amount actually payable, and the current parameters are published rather than negotiated. |
| Commonly mixed up with | The headline rate is often read as the effective rate. Exemptions and allowances mean many companies pay less than the headline figure. |
| Last reviewed | 2026-08-08 |
Short questions
- Are dividends taxed?
- Singapore operates a one-tier system, so dividends are not taxed again on the shareholder.
- Is foreign income taxed?
- It can be taxable on receipt in Singapore, subject to published exemptions.
- Are there start-up reliefs?
- IRAS publishes exemption schemes and the conditions for them.
- When are returns due?
- IRAS publishes the estimate and final return deadlines each year.
- Is there capital gains tax?
- Singapore does not levy a general capital gains tax, and IRAS explains the boundaries.
Sources
More in this track
- How do you register a company in Singapore as a foreigner?
- How does a foreign owner open a corporate bank account in Singapore?
- When does a Singapore company have to register for GST?
- Can you get an Employment Pass to run your own Singapore company?
- What are an employer's CPF duties in Singapore?
- What does a company need for a registered office in Singapore?
- What must a Singapore company file every year?
- When does a business in Singapore need a MAS licence?
- What changes when you hire locally instead of relocating staff to Singapore?
These pages explain how the rules work and link the authority that owns them. They are not legal, tax or immigration advice, and amounts and thresholds change, so open the source before you act.
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