Singapore Company Registration Key Taxes and Tax Rates Explained

Singapore, as a globally renowned business hub, has attracted numerous international companies to register due to its stable environment, efficient services, and favorable tax policies. For businesses intending to operate in Singapore, understanding the local tax system is an essential first step. This article will deeply analyze the main taxes and rates that companies should be aware of when registering in Singapore, based on recent news, helping entrepreneurs and business managers better plan their tax strategies.

I. Corporate Income Tax

Singapore's corporate income tax is one of the most important taxes. According to data from the Inland Revenue Authority of Singapore IRAS, the corporate income tax rate in Singapore was 17% as of 2025. However, this rate does not apply to all companies, as there are various tax relief measures available.

For example, according to the 2025 Singapore Budget, eligible small and medium-sized enterprises SMEs can enjoy a tax exemption on the first SGD 100,000 of profits. In 2025, a further SME tax relief program was introduced, allowing certain companies to benefit from a lower effective tax rate. According to Lianhe Zaobao, this policy aims to encourage local businesses to expand and enhance competitiveness.

It is important to note that corporate income tax is calculated based on taxable profits, not total revenue. When planning finances, companies should reasonably utilize deductions such as research and development expenses and depreciation costs to reduce their tax burden.

II. Goods and Services Tax GST

The Goods and Services Tax GST is Singapore's value-added tax system, applicable to the sale of most goods and services. The current GST rate is 7%, which was increased from 5% in 2025. According to Singapore's Finance Minister, Lawrence Wong, the increase in GST was aimed at addressing inflationary pressures and increasing government revenue.

III. Stamp Duty

Stamp duty mainly applies to real estate transactions, stock trading, and contract signing. For example, in real estate transactions, buyers need to pay 3%-4% of the purchase price as stamp duty, while sellers may also be required to pay additional stamp duty. According to a report by The Straits Times in 2025, Singapore recently introduced measures to regulate the real estate market, increasing stamp duty on certain properties to curb speculative activities.

For companies involved in stock trading or signing significant contracts, they should also consider the impact of stamp duty. For instance, when a listed company issues new shares, it may need to pay corresponding stamp duty, directly affecting its financing costs.

IV. Land Tax

Land tax is mainly levied on enterprises or individuals who own land. According to IRAS regulations, the land tax rate varies depending on the area and use of the land. For example, residential land typically has a lower tax rate than commercial land. In recent years, with the acceleration of urbanization, land use has been more strictly regulated, and land tax policies have also been adjusted.

According to a report by Asia News, Singapore is considering imposing a higher land tax on high-value land to promote the rational use of land resources. This is a policy trend worth noting for companies with large land assets.

V. Capital Gains Tax

Singapore does not impose a capital gains tax, meaning that companies do not need to pay taxes on gains from selling assets such as stocks or real estate. This policy provides investors with greater flexibility, especially for companies that hold assets long-term.

However, it is important to note that although capital gains are not taxed, companies must still fulfill relevant tax reporting obligations when selling assets. If a company frequently trades to generate profits, the income may be considered operational income, potentially exposing it to tax risks under other tax categories.

VI. Withholding Tax

Withholding tax refers to the portion of tax that a company must withhold and remit when paying amounts to non-residents. For example, when a Singapore company pays interest, royalties, or dividends to a foreign company, it must withhold tax at a certain rate. Currently, Singapore has entered into double taxation agreements DTAs with many countries, allowing for lower withholding tax rates in certain cases.

According to the latest information released by IRAS, the withholding tax rate in Singapore remained around 15% in 2025, but the exact rate may vary depending on the type of payment and the country of the recipient. Companies engaging in cross-border payments should carefully assess the relevant tax implications.

Conclusion

Overall, Singapore's tax system is relatively simple and competitive, offering a favorable business environment. However, as economic conditions change and policies are adjusted, companies must closely monitor the latest tax developments and make proper tax planning during registration and operations.

Whether it is a startup or a multinational corporation, understanding Singapore's tax system is essential for ensuring compliance and optimizing costs. It is recommended that companies consult professional tax advisors before registration to develop a tax strategy that best suits their development needs.

The above content is based on the latest news reports and official data as of 2025, intended to provide reference for those interested in registering a company in Singapore.