Corporate income tax

YA2019 - 20% of tax payable, capped at $10,000

YA2020 - 25% of tax payable, capped at $15,000

YA2021 - NIL

YA2022 - NIL

Both resident and non-resident companies are subject to tax at the corporate tax rate after tax exemptions as follows:

First $10,000 of chargeable income is 75% exempt - $7,500

Next $190,000 of chargeable income is 50% exempt - $95,000

Up to - $102,500

The exemption scheme does not apply to:

• income that is subject to tax at concessionary tax rates; and
• income earned by a non-resident company that is subject to a final withholding tax.

Qualifying start-up companies are granted tax exemptions for their normal chargeable income for their first three consecutive YAs. Where any of the first 3 YAs falls in or after YA2020:

First $100,000 of chargeable income is 75% exempt - $75,000

Next $100,000 of chargeable income is 50% exempt - $50,000

Up to - $125,000

The conditions to qualify for the start-up exemption are that the company must be Singapore incorporated and be a Singapore tax resident with no more than 20 shareholders where all shareholders are individuals or, at least one of the shareholders must be an individual who beneficially and directly owns at least 10% of the total number of issued ordinary shares.

Property developers and investment holding companies do not qualify for the start-up exemption.

Under the group relief system, Singapore companies within the same group (the Group) are allowed to transfer current year tax losses, unabsorbed capital allowances and unabsorbed donations to another company in the same group. A group consists of a Singapore incorporated parent company and all its qualifying Singapore incorporated companies.