Singapore Corporate Tax: The Definitive Guide for 2025

 

The small island nation of Singapore is often commended for its efforts to help entrepreneurs set up successful ventures. The business-friendly taxes, easy access to capital, strategic location, excellent infrastructure, and supportive business policies - all help in providing a conducive business environment that attracts global investment.

Among the Asian countries, Singapore offers the best corporate tax rates. This article aims to serve as a Singapore Corporate Tax Guide while highlighting its key features. Learn everything about Corporate Tax in Singapore with our definitive guide.

Planning to Set Up a Business in Singapore? Let Us Guide You Through the Journey

Understanding Singapore’s corporate tax landscape is crucial, but successfully setting up a business here requires even more specialized knowledge. Piloto Asia offers comprehensive business incorporation and tax advisory services tailored for international entrepreneurs.

From registration to compliance and tax planning, we’ll help you navigate every step with ease.

Start Your Singapore Venture

Singapore Corporate Tax Computation

To whom is the law applicable? 

Before diving deep into the subject, let us first look at who needs to pay the corporate tax in Singapore.

Under the income tax act, all companies, irrespective of their tax residency status, must pay corporate tax on income generated from Singapore. Apart from this, any income generated over-shore and transmitted into Singapore also comes under the purview of this act.

What is the current Singapore corporate tax rate set at?

Singapore has set its headline corporate tax rate at a flat 17%. This tax is levied on a company's chargeable income.

For Singapore tax computation, chargeable income is calculated as the difference between a company's taxable revenues and deductible expenses. Any recurring or ongoing expense earned from Singapore or remitted into the country is treated as taxable revenues.

Deductible income is any expense spent by the company to generate revenue. For more information on what fees comes under the gambit of deductible expenses, refer to the IRAS website.

It is worth noting that the effective rate applicable to a company is usually lower than the Singapore corporate income tax rate due to the many tax incentives and exemptions offered by the government.

Updates for 2025: Global Minimum Tax Rate

Singapore is aligning its corporate tax framework with the global minimum tax rate initiative established under the OECD’s Base Erosion and Profit Shifting (BEPS) 2.0 Pillar Two framework. Effective January 1, 2025, these changes ensure that large multinational enterprises (MNEs) operating in or from Singapore are subject to a minimum effective tax rate of 15%. This measure supports global efforts to combat tax base erosion and profit shifting while maintaining Singapore’s competitiveness as a business hub. Here’s what you need to know.

Key Updates

1. 15% Minimum Effective Tax Rate for Large MNEs:

Starting from financial years beginning on or after January 1, 2025, Singapore will implement a 15% minimum effective tax rate for MNE groups.

This applies to MNE groups with annual global revenues of at least €750 million (approximately S$1.07 billion) in at least two of the four preceding financial years.

The move aligns with the Global Anti-Base Erosion (GloBE) rules under the Organisation for Economic Co-operation and Development (OECD)’s BEPS 2.0 framework.

2. Introduction of the Domestic Top-up Tax (DTT):

Singapore will introduce a Domestic Top-up Tax (DTT) to ensure that the effective tax rate of in-scope MNEs operating in Singapore is raised to 15% if it falls below this threshold.

This measure prevents foreign jurisdictions from imposing additional top-up taxes on profits generated in Singapore.

3. Impact on Existing Tax Incentives:

The introduction of the 15% minimum tax rate necessitates a review of Singapore’s tax incentives.

The government is assessing its suite of industry development schemes to ensure they remain competitive and relevant in attracting global investments while complying with the new global tax standards.

How Businesses Should Prepare:

Assess Applicability - MNEs should evaluate whether they fall within the scope of the 15% minimum tax rate based on their global revenue and organizational structure.

Understand Compliance Requirements - Companies must familiarize themselves with the requirements of the GloBE rules and the DTT to ensure compliance with the new tax standards.

Engage Advisors - Businesses are encouraged to consult tax professionals or legal advisors - such as experts from Piloto Asia - to navigate these changes and optimize their tax strategies within the updated framework.

Do you need help with corporate tax in Singapore? Are you looking for corporate tax services in Singapore?

Fill up our form below to talk to one of our dedicated account managers.

We will get back to you in as little as 1 business day.

Which companies get the status of being Singapore tax-resident?

There are several benefits a Singapore tax resident company can claim compared to non- tax resident companies. Hence it is essential to understand which companies get labelled as Singapore tax-resident.

A Singapore tax-resident company is one whose control, and management decisions were taken from Singapore. It is important to remember that the place of incorporation does not necessarily mean that the company is Singapore tax-resident.

Therefore even if the daily operations of the company take place in Singapore, but the Board of Directors makes strategic decisions outside Singapore, the company will not become a Singapore tax-resident company.

It is for this reason that a branch of a foreign company based in Singapore is not given the status of a Singapore tax-resident company.

The basis of taxation for a resident and non-resident Singapore company is reasonably identical, but a resident Singapore company does enjoy a few many perks.

What are the general tax incentives offered in Singapore?

The various tax incentives extended to a tax-resident company incorporated in Singapore from Year of Assessment (YA) 2020 are as follows:

  1. A newly incorporated tax resident company in Singapore can avail 75% exemption for the first S$100,000 of normal chargeable income.

  2. A further 50% exemption is offered on the subsequent S$100,000 of taxable income. Under the Start-Up Tax Exemption Scheme, a newly incorporated company can enjoy this benefit only for the first 3YAs.

  3. Singapore follows a territorial tax system. Singapore signed a double taxation treaty with various countries. As a result, there is no double taxation of individual incomes earned from a country which Singapore signed a tax treaty with.

  4. Any foreign sourced income on which tax has been collected in a foreign country will be eligible for income tax exemption in Singapore. If, in any case, the income has been subjected to tax in Singapore, the company can avail tax reduction or exemption in a foreign country.

  5. Since 1st January 2003, Singapore follows a single-tier corporate income tax system. Thus it levies taxes only on profits. Any dividend given to its shareholders by the company is tax-free.

Moreover, Singapore does not follow the practice of capital gains tax. Hence profit received from the sale of any fixed assets or gains incurred from foreign exchange on capital transactions is exempted from taxation.

What are the partial tax exemptions given to companies in Singapore?

Any company that has not claimed benefits offered in the tax exemption scheme for new start-ups can avail of the Partial Tax Exemption (PTE) scheme. The various perks of this scheme from YA 2020 onwards are a follows:

  • An income tax exemption of 75% on the 1st S$10,000 of taxable income

  • A further exemption of 50% on the subsequent S$190,000 of taxable income

What are the tax exemptions for foreign sourced income from a foreign country?

Three types of incomes are tax-exempt:

  1. Profits obtained from a foreign branch

  2. Dividends provided to shareholders from a foreign source

  3. Service income generated from a foreign source

To be tax-exempt, the foreign-sourced income must meet the below criteria.

  • The corporate income tax rate prevalent in the foreign country must be at least 15% at the time when the foreign income enters Singapore.

  • The income was taxed in the foreign country.

  • The government of Singapore feels that the tax exemption offered will be useful to the individual residing in Singapore.

What is the DEI scheme?

The Development and Expansion Incentive (DEI) is an additional tax incentive scheme offered to further lower a company's taxable income.

DEI applies to companies that are either upgrading or increasing their scale of production in Singapore. It is also applicable if the company is venturing into leading global industries.

All income generated can be Tax-exempt or taxed at 10% for 5 years. However, companies must meet the below criteria:

  1. Generate employment that adds seniority, expertise, and skills to the workforce of Singapore

  2. The business expense must contribute to the country's economy.

  3. Be committed to adding new skill sets, technology, and know-how.

What are the projects that qualify for investment allowance?

An investment allowance is a generous scheme under which companies can avail tax credit on capital expenditures for qualifying projects. The tax credit earned can go up to 100% of the capital expenditures. The companies can seek this benefit for 5 years. In a few cases, the investment allowance can prolong for 8 years.

The projects that come under the umbrella of this scheme are as follows:

  1. Increasing the production volume of an already existing product or manufacturing a brand new product

  2. Projects centered around research and development

  3. Projects that require the expertise of specialized technical or engineering service

  4. Projects that seek to enhance energy efficiency

  5. Projects that aim to decrease water consumption

  6. Projects based on Construction operations

  7. Projects that involve space satellites

  8. Projects that offer to boost the tourism industry (hotels not included)

  9. Projects that deal with the repair, overhaul or provide maintenance services to aircrafts

What happens if a company incurs a loss?

If a company incurs a loss in a YA, it has the option of carrying forward the losses to the next YA. But first, the company must clear the Shareholding Test.

To pass this test, the company must prove that no significant changes have occurred in their shareholdings between the final day of the year in which the loss occurred and the starting day of the YA from which the loss will be recovered.

What is the corporate tax basis period in Singapore?

The IRAS takes into account the income generated in the preceding year for corporate tax computation. Basis period refers to the 12 months that fall before a YA. Therefore, the basis period for any YA is the financial year-end (FYE) of the year preceding the current YA.

For example, consider the FYE of a company to be from 1st April to 31st March. Then, in the year 2021, the company will begin corporate tax filing for income generated between 1st April 2019 and 31st March 2020.

How to File Corporate Income Tax Singapore: Step-by-Step

Prepare Financial Statements

Compile your company’s financial statements, which should include the balance sheet, income statement, and other relevant financial documentation.

Calculate Chargeable Income

Determine your company’s chargeable income by subtracting allowable expenses from your taxable revenue.

Complete Estimated Chargeable Income (ECI) Form

Submit the ECI form within three months from your financial year-end. Companies with an annual revenue of S$5 million or less and no chargeable income are exempt from this submission.

Prepare Tax Computation

Develop a detailed tax computation that outlines how the chargeable income is calculated. Include supporting schedules and claims for tax allowances, deductions, and any applicable tax incentives or rebates.

Declare Other Income and Transfer Pricing Arrangements

Ensure to declare any other income sources, such as rental income or investment gains. Provide accurate information about any related party transactions or transfer pricing arrangements and any applicable withholding tax obligations.

File Form C-S or Form C

Singapore-incorporated companies should file Form C-S if they meet specific criteria. Otherwise, complete and submit Form C and the tax computation, financial statements, and other required information. Companies with an annual revenue of S$200,000 or lower may submit a further simplified Form C-S (Lite) from YA2020 onwards. E-filing of Corporate Income Tax (Form C/C-S) is mandatory for all companies and must be submitted to IRAS through myTax Portal by 30th November annually.

Submit Documents Online

From the Year of Assessment (YA) 2020 onwards, companies must e-file their corporate income tax returns through the myTax Portal.

Meet the Deadline for ECI and Tax Filing

Ensure to submit all documents by the stipulated deadline, which is November 30th of the YA for tax filing and within three months from the financial year-end for ECI. Late submissions may incur penalties.

Pay Corporate Income Tax

After receiving the Notice of Assessment (NOA) from the Inland Revenue Authority of Singapore (IRAS), pay the tax due within one month. Various payment methods are available, including Internet banking, GIRO, cheque, telegraphic transfer, PayNow, and DBS PayLah!.

If you're seeking expert assistance to navigate the complexities of corporate tax filing in Singapore, Piloto's Corporate Tax Services are here to help. Our team of experienced professionals is dedicated to providing tailored solutions that meet your specific needs.

Contact us to ensure your tax filing is handled efficiently and accurately.

What are the documents required for filing corporate tax in Singapore?

For corporate tax filing in Singapore, a company must file two documents with the Inland Revenue Authority of Singapore (IRAS).


Estimated Chargeable Income

It is commonly known as the ECI document. This document provides an outline of a company's chargeable income. The filing of this document is mandatory for all companies. Companies are required to e-submit this document 3 months before their FYE.

However, if a company has generated an income less than or equal to five million in the year and has no chargeable income for YA, it need not file an ECI.

As per the latest guideline issued, all companies must file their corporate tax documents online from YA 2020. The physical filing of the documents is slowly being phased out.

Companies can file their documents through the myTax Portal.

Form C and Form C-S

A company must file their returns using the Form C document. Additional documents such as tax computation, financial statements must also be submitted.

However, if a company has generated an annual revenue less or equal to S$5 million, it can file their taxes using the simplified Form C-S document. This is applicable only under the below conditions:

  • The place of incorporation in Singapore.

  • The income is charged at the headline corporate tax rate of flat 17%.

  • The company does not claim tax benefits under any special schemes.

When is the due date for filing the corporate tax in Singapore?

There is an important date to remember for filing corporate tax in Singapore.

A Singapore resident company, whether large or small, has the following deadline:

  • The deadline for filing the Corporate Income Tax Return (Form C-S/ Form C-S (Lite)/ Form C) for the Year of Assessment (YA) 2023 is 30 Nov 2023.

Failing to file the documents by the stipulated deadline is an offense. The company, as well as the officers of the company, can be fined up to S$1,000 and S$10,000, respectively.

How to pay corporate tax in Singapore?

IRAS will review the forms filed by the company and generate a Notice of Assessment (NOA) by May 31st of the following year. The NOA is an in-depth statement of the current tax liabilities of a company.

The company must pay the tax assessed by the IRAS within 30 days of receiving the NOA. There are different payment methods available to the companies to pay their taxes. Companies can pay through internet banking, GIRO, cheque, or even telegraphic transfer.

What are the different kinds of penalties associated with corporate tax in Singapore?

There are 3 situations under which penalties can be imposed on a company:

1. Inaccurate filing of tax

If the IRAS finds that a company has unintentionally filed false tax documents, it can do the following:

  • Impose a fine of up to S$5,000

  • Charge 200% of the tax undercharged as a penalty

  • And/or a jail term of a maximum of 3 years

2. Late payment of tax

Late payment of corporate tax will lead to a 5% penalty. Further delay will result in an addition of 1% for every following month until the company clears its dues.

It is within IRAS's authority to take further legal or enforcement actions to recover the taxes.

3. Tax evasion

Tax evasion occurs when an individual or a company furnishes incomplete or inaccurate data to reduce their tax liability, obtain a refund or gain ineligible tax credit. This is a serious criminal offense and miscreants could face the below consequences:

  • Stiff penalties of up to 400% of the undercharged tax

  • Fines that can go up to S$50,000

  • And/or jail term for a period of up to 7 years

Given the severity of the punishments, it is strongly advised to seek the help of a professional tax advisor at Piloto Asia to help you file taxes on time and accurately.

Rounding up

Companies can significantly reduce their tax burden by setting up offices in Singapore. The business environment is the most favorable in the world. The exemptions received on dividends and capital gains are reasons enough that make Singapore the ideal destination for doing business.

Need support on tax filing?

Piloto Asia can partner with you on meeting your tax requirements.

Get a Quote
 

Frequently Asked Question

  • To file corporate income tax in Singapore, follow these steps:

    • Determine the filing deadline: The corporate income tax return, known as Form C-S or Form C, must be filed with the Inland Revenue Authority of Singapore (IRAS) by 30th November of each year. However, the exact deadline may vary, so it is important to check with IRAS or engage a tax professional to ensure compliance.

    • Prepare the necessary documents: Gather all relevant financial records, including profit and loss statements, balance sheets, and supporting documents such as receipts and invoices. You will also need details about the company's income, expenses, deductions, and any reliefs or exemptions that apply.

    • Complete the tax return form: Depending on the eligibility criteria, you can choose to file either Form C-S (Simplified Tax Return) or Form C (Full Tax Return). Form C-S is available for small companies meeting specific criteria, while Form C is for larger or more complex businesses. Fill in the required information accurately and provide all necessary supporting documents.

    • Calculate the taxable income and tax payable: Determine the company's taxable income by subtracting allowable expenses and deductions from the total income. Apply the relevant tax rates to calculate the corporate income tax payable. Be aware of any tax incentives or rebates that may apply and factor them into the calculation.

    • Declare any other income or information: If the company has other income sources, such as rental income or gains from investments, ensure they are properly declared in the tax return. Provide accurate information about any related party transactions or transfer pricing arrangements, as well as any applicable withholding tax obligations.

    • E-file your tax return: Use IRAS' online portal, myTax Portal, or through an accounting software integrated with IRAS' system. When assessing myTax Portal, either scan your SingPass or enter your SingPass ID and password. Once logged in, navigate to “Corporate Tax” on the menu bar and select “File Form C-S/C” based on your company’s requirements. Ensure the tax return is submitted before the deadline to avoid penalties.

    • Pay the tax payable: If there is tax payable, make the payment to IRAS by the specified due date. IRAS provides various payment options, including Internet Banking, GIRO, and electronic payment modes.

  • The new start-up tax exemption scheme (SUTE) in Singapore is a tax incentive introduced by the government to support and encourage the growth of start-up companies. Under this scheme, qualifying companies can enjoy tax exemptions on their chargeable income up to a certain amount. Here are the key features of the new start-up tax exemption scheme:

    • Qualifying criteria: To be eligible for the scheme, a company must be incorporated in Singapore and considered a tax resident. It should also fulfill the conditions of a "qualifying company," which includes being a private limited company with no more than 20 shareholders, of which at least one shareholder is an individual holding at least 10% of the ordinary shares.

    • Tax exemption rates: Under the scheme, qualifying companies can enjoy a partial tax exemption on their chargeable income. Starting from Years of Assessment (YA) 2020, eligible start-ups, in the first three consecutive YA after incorporation, benefit from a 75% tax exemption on the first S$100,000 of chargeable income. An additional 50% tax exemption applies to the next S$100,000.

    • Exceptions: The scheme does not apply to companies whose primary objective is property development or investment holding. Such companies can benefit from the Partial Tax Exemption (PTE) Scheme.

    • Tax Residency: A company's tax residency in Singapore depends on where it is managed and controlled. The place of incorporation is not the sole determinant.

  • As of the Singapore Budget 2023, the corporate income tax rebate is no longer available for YA 2023. Historically, this rebate was introduced to support businesses and was applicable for the Years of Assessment (YAs) 2013 to 2020.

    While the rebate has been phased out, businesses can still benefit from other tax incentives and schemes offered by IRAS. Some of these include the Start-Up Tax Exemption (SUTE) scheme, the Partial Tax Exemption (PTE) scheme, and sector-specific incentives for industries like finance, shipping, and manufacturing.

  • Note: The corporate income tax rebate is no longer available for YA 2023.

    The rebate rate for the corporate income tax rebate is determined by the government and may vary from year to year. The specific rebate rate for each Year of Assessment (YA) is announced in the annual Budget. The rebate is typically calculated as a percentage of the company's tax payable based on its chargeable income.

  • Singapore follows the Singapore Financial Reporting Standards (SFRS), which are based on the International Financial Reporting Standards (IFRS). The Ministry of Finance established the Accounting Standards Council (ASC), an independent statutory board that is responsible for issuing the SFRS.

  • Engaging a taxation service in Singapore can provide numerous benefits for your company. A professional taxation service can help ensure that your company complies with the local tax regulations, accurately calculates tax liabilities, and takes advantage of any available tax incentives or deductions.

    At Piloto Asia, our seasoned tax experts are well-versed in Singapore's corporate tax landscape.

    We offer tailored taxation services to meet your company's needs, helping you navigate tax compliance efficiently while optimizing your tax position.

    Reach out to us to learn how our taxation services can support your company in managing its tax obligations effectively and strategically.

  • Ensuring your company adheres to the best accounting practices is crucial, especially when navigating the complexities of corporate tax in Singapore. By leveraging accounting networks in Singapore, such as those offered by Piloto Asia, you can gain access to a wealth of expertise and resources. Piloto Asia, with its seasoned professionals, can help streamline your financial processes, ensure compliance, and optimize your tax position. Partnering with a reputable firm like Piloto Asia ensures you're well-versed in Singapore's tax landscape and receive tailored solutions to meet your company's specific needs.

  • The holding company in Singapore generally follows the same corporate tax structure as other companies as per the Singapore corporate tax guide. The headline corporate tax rate is 17%; however, the effective tax rate may be lowered through various schemes, incentives, and rebates. For more precise and thorough information, holding companies should seek professional tax advice or consult Piloto Asia's comprehensive Singapore corporate tax guide.

  • Singaporean companies must file Form C, a tax return form, to report their income, expenses, and taxes payable for the year. The form must be submitted electronically through the IRAS e-filing portal and in English.st be filled out in English..

  • In Singapore, a holding company is subject to the same corporate tax structure as other types of companies. The headline corporate tax rate is set at a flat 17%. However, the effective tax rate that a holding company pays can be lower than the headline rate due to various tax incentives, exemptions, and rebates offered by the government. These may include the Start-Up Tax Exemption Scheme, Partial Tax Exemption, and other sector-specific incentives. It's important for holding companies to understand these tax benefits and how they can apply to their specific financial situation. For detailed and personalized guidance on navigating the corporate tax landscape for your holding company in Singapore, consider reaching out to the experts at Piloto Asia. Our team specializes in providing tailored tax solutions that align with your company's unique financial needs.

  • Historical Corporate Tax Rates in Singapore

    Singapore has consistently worked towards creating a business-friendly environment by gradually reducing its corporate tax rates over the years. In 2000, the corporate tax rate was 26%, which has been systematically reduced to the current flat rate of 17% since 2010. This steady decline has been instrumental in promoting entrepreneurship and attracting foreign investment.

    Comparative Analysis with Other Countries

    United States: The federal corporate income tax rate in the U.S. is 21%, reduced from 35% in 2017. However, companies may also be subject to state and local taxes, significantly increasing the overall tax burden.

    United Kingdom: The UK has a corporate tax rate of 19%, with plans to increase it to 25% in 2023 for businesses with profits over £250,000.

    Australia: Australian companies are taxed at a rate of 30%, or 25% for small businesses with an annual turnover of less than AUD 50 million.

    Hong Kong: Similar to Singapore, Hong Kong offers a competitive corporate tax rate of 16.5% for corporations and 15% for unincorporated businesses.

  • Singapore’s tax system is notably advantageous for businesses, primarily due to the absence of capital gains tax. This feature offers companies significant financial benefits:

    Financial Flexibility
    Companies retain all proceeds from asset sales, providing more capital for reinvestment or shareholder distribution. This approach increases the appeal of Singapore-based businesses to investors, promising higher returns.

    Investment Incentives
    The non-existence of capital gains tax creates a favorable investment environment. Investors are more likely to buy and sell assets without worrying about tax deductions on profits, attracting both foreign and domestic investments and fostering economic growth.

    Strategic Asset Management
    Without capital gains tax influencing decisions, companies can focus on the true value and potential of assets during acquisition, holding, or disposal, leading to prudent and strategic asset management.

    Simplified Tax Compliance
    The absence of capital gains tax simplifies tax compliance, reducing administrative burdens and allowing companies to focus more on core operations.

  • Taxable incomes include profits from business operations, investment income (interest, dividends, and rental), royalties, premiums, and other profits from property, as well as certain types of foreign income that are remitted to Singapore.

    Notably, capital gains (including gains on the sale of fixed assets and gains on foreign exchange on capital transactions) are not taxable. Additionally, dividends sourced from Singapore are usually tax-exempt for the recipient.

  • In Singapore, capital gains typically are not subject to Corporate Income Tax. However, if the gains arise from frequent transactions or are realized over a short duration, they might be classified as operational profits and taxed accordingly.

    This determination uses specific criteria, including the intent to make a profit and the nature of the transactions. It's also noteworthy that certain gains from long-term shareholdings are exempt from tax, with some exceptions.

  • Determine taxable income: Start by identifying the total income subject to tax, including profits from trade or business, investment income (interest, dividends, rental), and other income of a similar nature. Exclude non-taxable income like capital gains, sale of fixed assets, and certain foreign-sourced incomes.

    Deduct allowable expenses: Subtract all allowable expenses from the taxable income, such as staff costs, office rent, and business travel expenses. Expenses that are personal, capital expenditures, or contingent liabilities are non-deductible.

    Adjust for net investment income: Investment income is assessed separately. Deduct related qualified expenses from each type of investment income, then add the net investment income back to the taxable income.

    Deduct capital allowances and unutilised losses: Replace depreciation with capital allowances for fixed assets. Deduct any unutilised losses from previous periods if they meet qualifying conditions.

    Apply tax allowances and incentives: Include any eligible tax allowances and incentives provided by the Singapore government.

    Calculate net taxable income: Subtract total allowable expenses, allowances, and incentives from the total income.

    Apply corporate tax rate: Use the standard corporate tax rate of 17% to the net taxable income to determine the tax payable.

    Consider Tax Exemptions and Rebates: Apply any applicable full or partial tax exemptions and tax rebates to the calculated tax. For instance, under the Partial Tax Exemption scheme, the first SGD 10,000 of chargeable income is taxed at 75% exemption, and the next SGD 190,000 at 50%. For qualifying start-up companies, the first SGD 100,000 of chargeable income enjoys 75% exemption, and the next SGD 100,000 at 50%

  • In calculating chargeable income for Corporate Income Tax in Singapore, non-deductible expenses include personal or private expenses, capital expenditures, contingent liabilities, fines and penalties, withdrawals by owners or shareholders for personal use, depreciation (though capital allowances can be claimed), motor vehicle expenses for private passenger cars, entertainment expenses not directly related to business, corporate income tax payments, and bad debts that do not meet specific conditions. This list is not exhaustive but covers some of the key categories of expenses that are typically not allowed as deductions in the calculation of taxable income.

  • Yes, Singapore offers a range of tax incentives and allowances to support business investment and growth.

    These incentives are designed for various industries and activities that contribute to the country's economic development. They include tax exemptions, reduced tax rates, and allowances for specific investments or activities.

    The eligibility and specifics of these incentives are subject to approval processes and certain economic commitments in Singapore. For detailed and up-to-date information on these incentives, please contact our tax consultant at Piloto Asia.

  • For the most accurate and current information on Corporate Income Tax in Singapore, the Inland Revenue Authority of Singapore (IRAS) is the primary source.

    However, navigating tax laws and staying updated with the latest changes can be challenging. For personalized assistance and expert guidance tailored to your specific business needs, feel free to contact us at Piloto Asia.

    Our team of qualified tax professionals is ready to help you with comprehensive tax planning and compliance strategies. Reach out to us for a consultation to ensure you're making the most informed decisions for your business.

  • In Singapore, corporations must adhere to the Singapore Financial Reporting Standards (SFRS) to ensure the legality and accuracy of their financial disclosures.

    The SFRS encompasses all aspects of accounting and financial reporting and is closely aligned with the International Financial Reporting Standards (IFRS).

    At Piloto Asia, Singapore's #1 corporate service provider, we provide our clients with a comprehensive overview of their obligations under these standards.

    Our expert team offers up-to-date advice on changes and modifications in the financial reporting standards in Singapore, helping businesses keep their accounting practices compliant and accurate.

  • Absolutely, at Piloto Asia, our comprehensive outsourced accounting services in Singapore are designed to cover all your corporate tax needs, ensuring your business stays compliant with Singapore's financial regulations and benefits from effective tax strategies.

    Our team of professional and chartered accountants offers expert guidance on corporate tax, including compliance, advisory, optimization, and filing. Choosing Piloto Asia means you're getting comprehensive support for both your accounting and corporate tax obligations, freeing you up to focus on growing your business with peace of mind.

    As Singapore's leading corporate service provider, we're dedicated to offering excellence and value, making sure your financial and tax management is in good hands.

  • Yes definitely. Singapore's corporate tax rules can be complex, but having good business accountants makes everything much easier and can significantly streamline your tax management process. At Piloto Asia, we really think it's a great idea to work with professional accountants. Our business accountants are well-versed in Singapore's corporate tax system. We can help minimize your tax liability while ensuring adherence to all tax rules. From preparing financial statements to filing your tax returns, our team will handle every process with meticulous attention to detail, giving you more time to focus on other aspects of your business.

  • The current rate of GST in Singapore is 9% and applies to most goods and services, excluding most financial services, residential property transactions, and investments in precious metals. At Piloto Asia, we specialize in ensuring your business adheres to GST regulations.

    We offer comprehensive services that include registering for GST, accurately filing GST returns, and advising on GST-related financial strategies. With our expertise, we ensure your business is fully compliant and strategically positioned to manage GST obligations efficiently.

  • At Piloto Asia, we understand that the initial cost of setting up a private limited company is an important factor for new businesses. The cost can vary depending on several factors, including the scale of your business, whether you're hiring employees upfront, and the nature of your business licenses.

    As an estimate, the basic setup costs range from SGD $800 to $1,500. However, there may be additional costs for necessary services such as taxation, accounting, and secretarial services, which your company may need to operate effectively and legally. Our expert team at Piloto Asia is always ready to provide clear, personalized advice according to your specific needs.

Taxation & AccountingRaymond ChanTaxation & Accounting