Free invoice generator and tax tools for Singapore

A Singapore business deals with the Inland Revenue Authority of Singapore (IRAS) for income tax and Goods and Services Tax (GST), and with the Central Provident Fund (CPF) Board for payroll contributions. A company pays corporate income tax at a flat 17% of chargeable income, whether it is local or foreign owned. A sole proprietor or partner is not taxed as a separate entity: the business profit goes on the owner's own return and is taxed at the resident personal rates, which since Year of Assessment (YA) 2024 reach 24% above S$1,000,000 of chargeable income.

On payroll, employers pay CPF for Singapore citizens and permanent residents, and the Skills Development Levy (SDL) for every employee, foreign staff included. The monthly CPF Ordinary Wage ceiling reached S$8,000 on 1 January 2026, the last step of a four-stage rise that began on 1 September 2023.

GST is Singapore's consumption tax and the most recent change to it was the move from 8% to 9% on 1 January 2024. Income is assessed in arrears, so YA 2027 taxes income earned in calendar 2026.

Singapore has no presumptive or turnover-based tax regime that replaces the ordinary taxes: a small business files a normal return and keeps normal books. What exists instead is relief on the tax itself. A qualifying new company gets, for its first three consecutive Years of Assessment, a 75% exemption on the first S$100,000 of normal chargeable income and a further 50% exemption on the next S$100,000 under section 43 of the Income Tax Act 1947. From the fourth Year of Assessment the company moves to the partial tax exemption scheme, which is available to companies generally. Normal chargeable income here means income taxed at the standard 17% corporate rate. A sole proprietor has no equivalent scheme and is taxed on business profit at personal resident rates.