Singapore Corporate Tax & SOTE Exemption IRAS Guide 2026

Complete guide to Singapore corporate tax (17%) and Start-up Tax Exemption (SOTE). Explains S$125k tax relief, partial exemption (PTE), & Form C-S filing.

Statutory Overview & Legal Framework

Corporate taxation in Singapore is administered by the Inland Revenue Authority of Singapore (IRAS) under the Income Tax Act (Cap. 134). Singapore's headline corporate income tax rate is 17% on chargeable income, before applicable exemptions, rebates, and tax incentives. Qualifying new startup companies enjoy the Start-up Tax Exemption (SOTE) scheme for their first 3 consecutive Years of Assessment (YA), providing 75% tax exemption on the first S$100,000 of normal chargeable income and 50% exemption on the next S$100,000 (up to S$125,000 total relief). All other companies benefit from the Partial Tax Exemption (PTE) scheme. In YA 2026, companies may receive a 50% Corporate Income Tax (CIT) Rebate, capped at S$40,000 after accounting for the S$2,000 CIT Rebate Cash Grant where applicable (for active companies with local staff). Use this guide to understand Singapore corporate tax rules.

Core Statutory Criteria & Regulations

17% Headline Corporate Income Tax Rate17% Headline Rate

Singapore taxes corporate chargeable income at a headline rate of 17%, subject to statutory exemption schemes, rebates, and tax incentives.

Start-up Tax Exemption (SOTE) First 3 YAsSOTE Startup Relief

Qualifying startups get 75% exemption on first S$100k and 50% exemption on next S$100k chargeable income (max S$125k relief).

Partial Tax Exemption (PTE) SchemePTE Exemption

Non-SOTE companies receive 75% exemption on first S$10,000 and 50% exemption on next S$190,000 chargeable income (max S$102,500 relief).

Single-Tier Corporate Tax SystemTax-Free Dividends

Corporate profits are taxed once at the company level; dividends distributed to shareholders are 100% tax-exempt.

Qualification & Compliance Requirements

Applies to all companies incorporated or operating in Singapore.

To qualify for SOTE, company must be incorporated in Singapore, be tax resident, have max 20 shareholders (where all shareholders are individuals OR at least 1 individual holds 10%+ ordinary shares), and NOT be an investment holding company or property development firm for sale/investment.

Form C-S / Form C-S (Lite) filing e-deadline is November 30 annually.

Estimated Chargeable Income (ECI) must be filed within 3 months of financial year-end (FYE) unless qualifying for an ECI waiver.

Statutory Document & Application Checklist

Income Tax Act (Cap. 134, Section 43)

IRAS Form C-S / Form C-S (Lite) Tax Return

Company Financial Statements (Compilation Report or Audited Accounts retained for IRAS inspection)

IRAS Tax Computation Schedule & ECI Statement

Notice of Assessment (NOA) issued by IRAS

Step-by-Step Filing & Compliance Process

Close Financial Year-End (FYE) Accounts

Company closes financial accounts at FYE and prepares compilation report and tax computation schedule.

File Estimated Chargeable Income (ECI)

Submit ECI on IRAS myTax Portal within 3 months of FYE (unless meeting revenue/income ECI waiver criteria).

Apply SOTE or PTE Tax Exemption Scheme

Calculate net taxable income after deducting qualifying SOTE or PTE statutory exemption thresholds and applicable YA CIT rebates.

Submit Form C-S / Form C-S (Lite) on myTax Portal

Submit annual corporate tax return online before November 30 of the Year of Assessment.

Receive IRAS Notice of Assessment (NOA) & Pay Tax

IRAS issues NOA; tax payment is made via GIRO, PayNow Corporate, or internet banking within 1 month of NOA date.

Frequently Asked Questions (FAQ)

Singapore has a headline corporate tax rate of 17% on chargeable income, which is significantly reduced for qualifying companies after SOTE/PTE tax exemptions and CIT rebates.

SOTE grants qualifying new companies 75% tax exemption on the first S$100,000 of chargeable income and 50% exemption on the next S$100,000 for their first 3 consecutive YAs. The company must have no more than 20 shareholders (all individuals, or at least one individual holding 10%+ shares) and cannot be an investment holding or property development firm.

No. Under Singapore's Single-Tier Corporate Tax System, tax paid by a company on its profits is final, and dividends distributed to shareholders are completely tax-exempt.

Singapore generally does not impose a separate capital gains tax on gains from property or stock sales. However, gains may be taxable as ordinary income if IRAS determines they are trading or revenue gains in nature.

The annual e-filing deadline for Form C-S / Form C-S (Lite) / Form C on IRAS myTax Portal is November 30.

For YA 2026, IRAS provides a 50% Corporate Income Tax (CIT) Rebate (capped at S$40,000), paired with a S$2,000 CIT Rebate Cash Grant for active companies employing at least one local worker.