Enter your business revenue, profit margin, and salary to get a side-by-side breakdown of your total corporate and personal tax burden — Singapore vs your home country.
Singapore's flat 17% corporate tax rate is among the lowest in Asia. New companies get significant startup exemptions (SUTE) for their first three years, bringing the effective rate on smaller profits well below 10%.
Singapore operates a one-tier tax system — once corporate tax is paid, dividends distributed to shareholders are completely tax-exempt. No withholding tax, no double taxation on profits you take out.
Singapore does not levy capital gains tax. Proceeds from selling shares, property (in most cases), or other assets are not taxed — a significant advantage for founders planning an exit or holding investments.
Singapore has over 90 double tax agreements. This often reduces withholding taxes on cross-border payments and can eliminate double taxation on the same income across jurisdictions.
It depends on your residency and the nature of the income. If you remain tax-resident in your home country, you may still owe personal income tax there on your salary or dividends. However, Singapore's 90+ double tax treaties often eliminate or reduce this significantly. A key advantage is Singapore's one-tier dividend system — profits distributed to shareholders are not taxed again in Singapore, regardless of where the shareholder lives.
SUTE (Start-Up Tax Exemption) applies to qualifying new companies for their first three Years of Assessment. Under SUTE, 75% of the first S$100,000 of chargeable income is exempt, and 50% of the next S$100,000 is exempt. This means the effective corporate tax rate on the first S$200,000 of profit is just 4.25%, versus the headline rate of 17%. From year 4 onwards, the Partial Tax Exemption (PTE) applies, which is less generous but still provides meaningful relief.
Yes. Once you incorporate a Singapore company, you can apply for an Employment Pass as a director of your own company. MOM requires a minimum fixed salary (currently S$5,000/month for most sectors, higher for financial services), and your application is assessed on your qualifications, the viability of the business, and your proposed salary. Karman can assist with both the incorporation and the EP application process.
Singapore's GST (Goods and Services Tax) rate is 9% (as of 2024). However, registration is only mandatory once your taxable turnover exceeds S$1 million per year. B2B software, consulting, or services exported outside Singapore are generally zero-rated (0% GST) rather than standard-rated. Many early-stage companies can operate for years without needing to register for GST at all.
This tool uses widely-cited headline tax rates and simplified calculations intended to give you a directional sense of the tax efficiency difference. It does not account for individual deductions, tax treaty benefits, controlled foreign corporation (CFC) rules, transfer pricing, or personal residency nuances. The comparison is most accurate for founders who plan to be operationally based in Singapore. Always consult a qualified tax advisor for a decision of this magnitude.