What is the corporate tax rate in Singapore?

17% flat on chargeable income — but exemptions mean small companies pay far less effectively. A company with S$120,000 chargeable profit pays roughly S$4,900 for YA 2026 after the partial exemption and CIT rebate — about 4%.

What does Year of Assessment (YA) mean?

Tax is assessed one year in arrears: YA 2026 taxes the financial year that ended in calendar 2025. Your FY ending 31 Dec 2025 is assessed — and filed by 30 Nov — in 2026.

What is the CIT rebate for YA 2026?

50% of corporate tax payable, capped at S$40,000, with a S$2,000 cash grant for active companies that employed at least one local employee in 2025 (the grant counts toward the same cap).

Singapore corporate tax for small companies, explained (YA 2026)

Singapore's headline corporate rate is 17% — among the lowest in the developed world — and small companies rarely pay even that, thanks to exemption schemes and the current CIT rebate. Here's the whole system in plain English.

First, decode "YA"

Tax runs one year behind: the Year of Assessment (YA) taxes the financial year that ended in the previous calendar year. FY ended 31 December 2025 → assessed in YA 2026 → Form C-S due 30 November 2026.

The exemptions that do the heavy lifting

Partial exemption (most companies): 75% of the first S$10,000 of chargeable income is exempt, plus 50% of the next S$190,000 — up to S$102,500 exempt.
Start-up exemption (first 3 YAs, qualifying new companies): 75% of the first S$100,000 plus 50% of the next S$100,000 — up to S$125,000 exempt.

YA 2026: the 50% CIT rebate

On top of the exemptions, YA 2026 carries a 50% rebate on tax payable, capped at S$40,000 per company. Active companies that employed at least one local (Citizen/PR) employee on CPF in 2025 get a S$2,000 cash grant automatically, which uses up part of the same cap.

Worked example: S$120,000 profit, YA 2026

Chargeable income before exemption: S$120,000
Partial exemption: 75% × 10,000 + 50% × 110,000 = S$62,500
Chargeable income: S$57,500 → tax at 17% = S$9,775
CIT rebate 50% = S$4,888 → net payable ≈ S$4,887
Effective rate on the S$120,000 profit: about 4.1%

Your own numbers will differ with add-backs (depreciation, private expenses, fines) and capital allowances — run them in our free corporate tax calculator.

From books to filing figure: Bookly prepares the full IRAS-format computation — add-backs, capital allowances, donations at 250%, Statement A1 — straight from your documents. Start free.

Rates and schemes per IRAS as at June 2026; the CIT rebate is YA-specific and set at each Budget. General information, not tax advice.