The Singapore government has tax reliefs that are designed to reduce the tax burden for companies. The Inland Revenue Authority of Singapore (IRAS) has come up with a Partial Tax Exemption for Companies (PTE). All companies, including companies limited by guarantee, can enjoy PTE unless they have already claimed the Tax Exemption Scheme for New Start-Up Companies.

If you are a start-up company, please refer to this article:

Common Tax Reliefs that will help to reduce the tax bill for New Start-Up Companies

Partial Tax Exemption for Companies (PTE)

Let us focus on Year of Assessment 2019 and 2020.

Year of Assessment 2019 (YA 2019)

This is for financial years which closed in 2018.
(Please watch our YouTube video at the bottom of this article to better understand how to decipher which accounts belong to which financial year.)

  • 75% exemption on the first $10,000 of normal chargeable income; and
  • A further 50% exemption on the next $290,000 of normal chargeable income.

 

Year of Assessment 2020 (YA 2020)

This is for financial years which closed in 2019.

  • 75% exemption on the first $10,000 of normal chargeable income; and
  • A further 50% exemption on the next $190,000 of normal chargeable income.

 

(Normal chargeable income refers to income to be taxed at the prevailing corporate tax rate.)

 

Companies will also be eligible for Corporate Income Tax Rebates

All companies will receive a corporate income tax rebate of the following:

  • 20% corporate income tax rebate, capped at $10,000 for YA 2019
  • 40% corporate income tax rebate, capped at $15,000 for YA 2018

 

Do remember that all companies need to submit two corporate income tax returns to IRAS every year.

  1. Estimated Chargeable Income (ECI): To be submitted within three months from the company’s financial year end except for companies which are exempted.
  2. Corporate Income Tax Returns (Form C-S of Form C): To be submitted by 30th November (hard copy) or 15th December (e-filing)

 

For accounting advice, you may contact our accounting partner Singapore Accounting Services at kevin@singaporeaccountingservices.com.

When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.

 

Yours Sincerely,
The editorial team at Singapore Secretary Services

 

For more useful articles and videos, visit the Singapore Secretary Services resource page.

If you would like to submit a question or would like us to do an article on certain topics, please email us at info@singaporesecretaryservices.com.

For accounting, bookkeeping, tax and XBRL matters, visit SingaporeAccountingServices.com.