June 2024 / Singapore

June 4 2024

Singapore Corporate Income Tax Rate & Rebates

Corporate Income Tax (CIT) Rate

Your company is taxed at a flat rate of 17% of its chargeable income. This applies to both local and foreign companies.

CIT Rebate for the Year of Assessment ("YA") 2024 and a CIT Rebate Cash Grant

As announced in Budget 2024, to help companies manage rising costs, a CIT Rebate of 50% of the corporate tax payable will be granted to all taxpaying companies, whether tax resident or not, for YA 2024. Companies that have employed at least one local employee in 2023 (referred to as “local employee condition”) will receive $2,000 in cash payout (referred to as “CIT Rebate Cash Grant”). Such companies will therefore receive a minimum benefit of $2,000. The maximum total benefits of CIT Rebate and CIT Rebate Cash Grant that a company may receive is $40,000.

The CIT Rebate Cash Grant is to provide support for smaller companies which would otherwise receive little or no CIT Rebate. To be eligible for the CIT Rebate Cash Grant, a company must have met the local employee condition, that is, the company has made CPF contributions to at least one local (Singapore Citizen or Permanent Resident) employee, not including shareholders who are also directors of the company, in the calendar year 2023. Companies, whether tax resident or not, that have met the local employee condition will automatically receive the CIT Rebate Cash Grant by the third quarter of 2024. The CIT Rebate Cash Grant is also extended to registered business trusts and variable capital companies, whether resident or not, that meet the local employee condition. The CIT Rebate Cash Grant will not be taxable.

The CIT Rebate will apply to income taxed at a concessionary tax rate but will not apply to income that is subject to a final withholding tax. The CIT Rebate is also extended to registered business trusts and variable capital companies.

Source: IRAS