Starting a business in
🇸🇬Singapore
Checked November 4, 2026 · How we score
Corporate tax
17%
Top income tax
24%
Setup from
$1,500
all-in, first year
Time to form
3 days
can be done remotely
Taxes in Singapore
| Corporate income tax | 17% Flat 17% corporate income tax. New companies get a start-up exemption for their first three years of assessment (75% of the first S$100,000 and 50% of the next S$100,000 exempt); other companies get a partial exemption (75% of the first S$10,000 and 50% of the next S$190,000). Foreign-sourced income is taxed only when received in Singapore, with conditions for exemption. A 15% Domestic Top-up Tax applies from 2025 to large multinational groups. |
|---|---|
| Personal income tax (top) | 24% Progressive resident rates from 0% to 24% (24% on chargeable income above S$1,000,000 from YA2024). Non-residents pay 15% on employment income or the resident rate, whichever is higher, and 24% on most other income. Foreign-sourced income received by individuals is generally exempt. |
| Tax system | Territorial (foreign income untaxed) |
| Capital gains tax | 0%No capital gains tax, though gains may be taxed as income if they arise from trading. Foreign-sourced disposal gains received by entities in Singapore may be taxable from 2024 in limited cases. |
| Dividend withholding (non-residents) | 0% |
| VAT / GST | 9% |
| Social security | CPF contributions apply to citizens and PRs only (up to 37% combined); employers pay a foreign worker levy for work permit holders. |
Forming a company in Singapore
| Usual entity | Pte Ltd (private limited company) |
|---|---|
| Minimum capital | $1 |
| Setup cost (all-in) | $1,500–$4,000 |
| Annual running cost | $2,000–$6,000 |
| Time to incorporate | 3 days |
| Form remotely as a foreigner | Yes |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Moderate |
Residency and visas
No digital nomad visa. Founders usually use an EntrePass (innovative start-ups, higher bar since 2023), Employment Pass (minimum S$5,600 a month, higher for financials) or Tech.Pass for senior tech talent. The Global Investor Programme for permanent residence requires S$10m-25m, and family offices can use the 13O/13U fund exemptions.
| Digital nomad visa | No |
|---|---|
| Golden visa | Yes, from $7.5M |
| Ease of residency for founders | 4/5 (1 = easiest) |
Special tax regimes
Start-up Tax Exemption (SUTE)
New resident companies pay no tax on 75% of the first S$100,000 and 50% of the next S$100,000 of chargeable income for their first three YAs, subject to conditions such as no more than 20 shareholders and individual ownership.
Partial Tax Exemption
Applies to all companies: 75% of the first S$10,000 and 50% of the next S$190,000 of chargeable income exempt each year.
Foreign-sourced income exemption
Foreign dividends, branch profits and service income received in Singapore are exempt if the headline rate in the source country is at least 15% and the income was taxed there.
Single-family office incentives (13O/13U)
Tax exemption on qualifying income of funds managed by Singapore-based single-family offices, subject to AUM and spending conditions.
Tech.Pass / EntrePass
Pass types aimed at tech leaders and innovative founders who want to live in Singapore.
Pros and cons
Why founders pick Singapore
- Top-tier reputation with banks, investors and tax authorities
- 17% rate with generous start-up and partial exemptions
- No capital gains or dividend withholding tax
- Extensive double-tax treaty network and a clear, stable legal system
- Fast online incorporation through ACRA
Watch out for
- A resident director is mandatory, so a nominee costs about $1,200-$3,000 a year if you do not relocate
- Business bank accounts for non-residents are slow and need in-person or highly documented onboarding
- Cost of living and office space are expensive
- Residency passes are competitive and quotas apply
- Shareholder and director details are visible on ACRA's public registry
Best for: Asia-focused SaaS and fintech startups · Holding companies and regional HQs · Investors who want a highly credible jurisdiction · Fund managers and family offices
Singapore: common questions
What is the corporate tax rate in Singapore?
The headline corporate income tax rate is 17%. Effective rates are lower for small profits because of the start-up exemption and partial exemption, and large multinational groups face a 15% top-up tax from 2025.
Is Singapore a tax haven?
Singapore is usually described as a low-tax, high-transparency financial centre rather than a tax haven. It has a 17% corporate rate, no capital gains tax and strong compliance and anti-money laundering rules, and it is not on the EU blacklist.
Can a foreigner own 100% of a Singapore company?
Yes. A foreigner can be the sole shareholder of a Pte Ltd, but at least one director must be ordinarily resident in Singapore (citizen, PR or an EntrePass/Employment Pass holder). Many non-residents hire a nominee director service.
How much does it cost to set up a company in Singapore?
Incorporation through an agent typically costs about $1,500 to $4,000 including the ACRA fee, registered address, company secretary and a nominee director if needed. Annual upkeep including accounting, corporate secretary and filing is commonly $2,000 to $6,000.
Does Singapore tax foreign income?
Foreign-sourced income received in Singapore by companies is taxable unless an exemption applies, such as the exemption for qualifying foreign dividends, branch profits and service income. Individuals' foreign-sourced income received in Singapore is generally exempt.
Sources
- Inland Revenue Authority of Singapore (IRAS)
- ACRA - Accounting and Corporate Regulatory Authority
- Ministry of Manpower - Work passes
- PwC Tax Summaries - Singapore
Compare Singapore
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.