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How Singapore's headline 17 percent corporate tax rate works in practice and which exemptions can lower your effective rate.
Singapore taxes corporate profits at a flat 17 percent. The effective rate paid by most small and medium companies is significantly lower thanks to partial exemptions and start up tax relief.
Start up tax exemption
Qualifying new companies enjoy partial exemption on the first 200,000 dollars of chargeable income for their first three years of assessment. This relief alone can save tens of thousands of dollars in the early years.
Partial tax exemption
After the start up period ends, the partial tax exemption continues to apply to most companies, reducing the effective rate on the first tranche of profits.