Question 1

What is the corporate tax rate in Singapore for 2026?

Accepted Answer

Singapore's corporate tax rate is 17% on chargeable income for the 2026 year of assessment. The effective rate is much lower for SMEs due to the Start-Up Tax Exemption (SUTE) and Partial Tax Exemption (PTE) schemes, plus the 40% Corporate Income Tax (CIT) rebate announced in Budget 2026 (capped at S$40,000 per company).

Question 2

How does SUTE work?

Accepted Answer

SUTE (Start-Up Tax Exemption) applies to qualifying new companies for their first 3 years of assessment. The first S$100,000 of chargeable income is 75% exempt (only S$25,000 taxable), the next S$100,000 is 50% exempt (S$50,000 taxable), and the remainder is fully taxable at 17%. To qualify, the company must be incorporated in Singapore, be a tax resident, and have no more than 20 individual shareholders (or one corporate shareholder holding 10%+).

Question 3

What are the CPF contribution rates in Singapore?

Accepted Answer

For Singapore citizens and PRs aged 55 and below earning above S$750/month: employer contributes 17% and employee contributes 20% of ordinary wages (capped at the Ordinary Wage ceiling of S$8,000/month from Jan 2026). Rates decrease for older age bands. Only Singapore citizens and PRs are subject to CPF - foreign workers on EP, S Pass, etc. are not.

Question 4

What is the GST rate in Singapore in 2026?

Accepted Answer

Singapore's GST rate is 9% as of January 1, 2024. To calculate GST on a price-exclusive amount: GST = price × 0.09. To extract GST from a GST-inclusive amount: GST = inclusive_price × 9/109. GST registration is compulsory if your annual taxable turnover exceeds S$1 million, but voluntary registration is also available.

Question 5

How is director salary taxed in Singapore?

Accepted Answer

Director's fees and salary are taxed as employment income at progressive personal income tax rates ranging from 0% (first S$20,000) to 24% (income above S$1 million) for tax residents. Non-resident directors are taxed at a flat 22% on directors' fees with no exemptions. Tax residency is generally established by being in Singapore for at least 183 days in the year.

Question 6

Does CPF apply to foreign directors?

Accepted Answer

No. CPF only applies to Singapore citizens and Permanent Residents. Foreign directors and employees on Employment Pass (EP), S Pass, or other work passes are not subject to CPF contributions. However, employers should consider the Skills Development Levy (SDL) which applies to all employees regardless of nationality at 0.25% of monthly remuneration.

Singapore tax calculator (2026)

Corporate income tax (Year of Assessment 2026)

CPF contributions (2026 rates)

GST calculator (9%)

Personal income tax (YA 2026)

What changed and what stayed the same

40% CIT rebate (Budget 2026)

SUTE: first 3 YAs

CPF wage ceiling: S$8,000

GST stays at 9%

Singapore tax calculator (2026)

Corporate income tax (Year of Assessment 2026)

CPF contributions (2026 rates)

GST calculator (9%)

Personal income tax (YA 2026)

What changed and what stayed the same

40% CIT rebate (Budget 2026)

SUTE: first 3 YAs

CPF wage ceiling: S$8,000

GST stays at 9%

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