# Singapore corporate income tax: 17% rate, exemptions and the YA 2026 rebate

> The 17% company tax rate, the start-up and partial tax exemptions, and how the YA 2026 CIT Rebate and $2,000 Cash Grant reduce the bill.

- Tool: [Corporate Tax Calculator](https://toolsg.com/en/corporate-tax-calculator)
- Language: en (available: en, zh)
- Last verified against official sources: 2026-10-29
- Source site: ToolSG — a planning guide, not official or financial advice. Cite the agencies listed under Sources.

## Key figures at a glance

| Fact | Value | Source |
| --- | --- | --- |
| Corporate income tax rate | 17% — Flat rate on chargeable income, local and foreign companies. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |
| Start-up exemption, first band | 75% off the first $100,000 — First 3 consecutive YAs, YA 2020 onwards. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |
| Start-up exemption, second band | 50% off the next $100,000 — At most $125,000 exempt a year. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |
| Partial exemption, first band | 75% off the first $10,000 — YA 2020 onwards. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |
| Partial exemption, second band | 50% off the next $190,000 — At most $102,500 exempt a year. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |
| YA 2026 CIT Rebate | 50% of tax payable — Enhanced from 40%. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |
| YA 2026 CIT Rebate Cash Grant | $2,000 — Active companies with a local employee’s CPF contributions in 2025. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |
| YA 2026 maximum benefit | $40,000 — Rebate and Cash Grant combined. | [IRAS](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) |

## Rate

A company pays corporate income tax at a flat **17%** of its chargeable income. This applies to local and foreign companies.

## Tax exemptions

A company uses **one** of these on its normal chargeable income (income taxed at 17%), YA 2020 onwards:

| Scheme | First band | Next band | Most exempt a year |
| --- | --- | --- | --- |
| Start-up exemption (first 3 YAs) | 75% of the first $100,000 | 50% of the next $100,000 | $125,000 |
| Partial exemption (all other companies) | 75% of the first $10,000 | 50% of the next $190,000 | $102,500 |

To claim the start-up exemption a company must be incorporated and tax resident in Singapore, have no more than 20 shareholders throughout the year (all individuals, or at least one individual holding 10% or more of the ordinary shares), and not be an investment holding or property development company. IRAS audits abuse through shell companies.

## YA 2026 CIT Rebate and Cash Grant

For YA 2026 every taxpaying company gets a **CIT Rebate of 50% of the corporate tax payable**. An **active** company that made CPF contributions for **at least one local employee** (not a shareholder-director) in 2025 also gets a **$2,000 CIT Rebate Cash Grant**, paid automatically and not taxable. The two together are capped at **$40,000**.

| Company | How the rebate works |
| --- | --- |
| Eligible for the Cash Grant | If the rebate is $2,000 or less, no rebate is given (the grant is the benefit); otherwise the rebate, capped at $40,000, less $2,000 |
| Not eligible | The rebate, capped at $40,000 |

The rebate is applied after the exemptions. It does not apply to income under a final withholding tax.

## Worked examples

| Case | Tax | Rebate | Payable |
| --- | --- | --- | --- |
| $300,000, partial exemption, YA 2026, Cash Grant eligible | $33,575 | $14,787.50 (plus $2,000 grant) | $18,787.50 |
| $200,000, start-up exemption, no rebate | $12,750 | — | $12,750 |
| $1,000,000, no exemption, YA 2026, Cash Grant eligible | $170,000 | $38,000 (plus $2,000 grant) | $132,000 |

## Not modelled

Losses, capital allowances, other reliefs, concessionary tax rates and withholding tax. Enter the chargeable income from your tax computation.

## Related tools

- [Income tax calculator](https://toolsg.com/en/income-tax-calculator) — personal income tax.
- [Payroll cost calculator](https://toolsg.com/en/payroll-calculator) — employer cost per employee.
- [SDL calculator](https://toolsg.com/en/sdl-calculator) — Skills Development Levy.

## Frequently asked questions

**What is the corporate tax rate in Singapore?**

17% of chargeable income, for local and foreign companies.

**Who gets the start-up tax exemption?**

Qualifying new companies in their first 3 consecutive years of assessment: incorporated and tax resident in Singapore, with no more than 20 shareholders, and not investment holding or property development companies.

**Can I claim both exemptions?**

No. A company that claims the start-up exemption cannot also use the partial tax exemption.

**How does the YA 2026 CIT Rebate work?**

50% of the tax payable, up to $40,000 together with the Cash Grant. Eligible companies get a $2,000 Cash Grant, and the rebate is reduced by $2,000.

**Who gets the Cash Grant?**

Active companies that made CPF contributions for at least one local employee, other than a shareholder-director, in 2025.


## Sources

- [IRAS — Corporate Income Tax Rate, Rebates & Tax Exemption Schemes](https://www.iras.gov.sg/taxes/corporate-income-tax/basics-of-corporate-income-tax/corporate-income-tax-rate-rebates-and-tax-exemption-schemes) — Rate, YA 2026 rebate and cash grant, start-up and partial exemptions (updated 7 Aug 2026).