When registering and operating a company in Singapore, various tax issues are inevitably encountered. For ordinary Singaporean companies, two taxes are typically involved in daily operations: Corporate Income Tax (CIT) and Goods and Services Tax (GST).


Corporate Income Tax (CIT)

The Singapore IRAS stipulates that every private limited company in Singapore must file an income tax return with IRAS for each financial year. The payment of corporate income tax is based on the pre-tax profits of the company's financial year, not on its turnover.

The corporate income tax rate for Singapore private limited companies is 17%, but the Singapore IRAS offers certain tax exemptions (Tax Exemption) for these companies: newly registered companies enjoy a 75% tax exemption on the first SGD 100,000 of annual profits for the first three years.

Dormant companies without operations must also file taxes according to the standard procedures. The Singapore IRAS will impose fines or even initiate legal action against companies that fail to declare on time.


Goods and Services Tax (GST)

The meaning of GST

The Goods and Services Tax (GST)," is a broad consumption tax levied on imported goods (collected by Singapore Customs) and nearly all goods and services supplied in Singapore. In other countries/regions, GST is referred to as Value-Added Tax.

The exemption of GST

The exemption of GST applies to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, as well as the import and domestic supply of investment precious metals. Exports of goods and international services are subject to a zero tax rate.

Which companies need to register for consumption tax?

According to Singapore's GST regulations, companies with revenue exceeding S$1 million in their financial year (Revenue > S$1,000,000) are required to register for GST. Companies with revenue below S$1 million may also voluntarily register. Once a company becomes a GST-registered entity in Singapore, it must regularly file GST returns with the Inland Revenue Authority of Singapore.

Consumption tax rate

The current GST rate in Singapore is 9%.

Filing and Refund of GST

The filing of Singapore GST is typically conducted quarterly. Most small and medium-sized private enterprises in Singapore outsource their GST-related calculations and filings to professional accounting firms. After GST registration, company expenses including GST can also be claimed for refund through government submission.

For example, Company A Electronics spends S$1,000 (including S$70 consumption tax) to purchase a computer and sells it for S$2,000 (including S$140 consumption tax). In the consumption tax incurred, the S$140 tax from the sale must be paid to the tax bureau, while the S$70 tax from the purchase can be claimed for a government refund.

Foreign tourists visiting Singapore can also apply for a Goods and Services Tax (GST) refund at the airport for most receipts exceeding SGD 100 per transaction (including GST).


Established in 2013, Singapore Skyline Business is a comprehensive international business registration and company management service provider. As a registered and reputable business entity with the Ministry of Manpower in Singapore, we specialize in services ranging from family office establishment, GIP investment immigration, company registration, work permit applications, to later-stage PR applications. Feel free to reach out for a free consultation via WeChat (ID: sgtianyu2) or WhatsApp at +65-91328885.

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