By MoneyBees
Work out company tax at the 17% rate after the partial or start-up tax exemption, with the YA 2026 50% rebate and S$2,000 cash grant.
17% of chargeable income. Exemptions and the yearly rebate bring the tax a small company really pays well below that. A company with S$300,000 of chargeable income pays about 6.3% in YA 2026.
Every company that does not take the start-up exemption gets it. 75% of the first S$10,000 of chargeable income and 50% of the next S$190,000 are exempt, so up to S$102,500 is not taxed.
A new company in its first 3 Years of Assessment that is incorporated and tax resident in Singapore, with no more than 20 shareholders who are all individuals, or with at least one individual holding 10% or more. Investment holding and property development companies cannot claim it.
50% of the tax payable, with a S$2,000 cash grant for companies that paid CPF for at least one local employee in 2025. The grant and the rebate together are capped at S$40,000. Budget 2026 first set it at 40%, raised on 7 April 2026.
The grant counts towards the benefit. When 50% of your tax comes to S$2,000 or less, the grant is all you receive; above that, IRAS takes the 50% figure, caps it at S$40,000 and knocks off the S$2,000 it has already paid you.
A Singapore citizen or permanent resident the company paid CPF contributions for in 2025. Shareholders who are also directors of the company do not count.
It is an estimate from your chargeable income. Your final figure depends on the tax adjustments, capital allowances, losses and set-offs in your company's return, which IRAS assesses.
Junxiong-WFG Organisation is an authorised representative of AIA Financial Advisers Private Limited (Reg. No. 201715016G).