Your company earns profit in one year and pays tax on this profit in the next. Year of Assessment 2026 (YA2026) covers the financial year ending in 2025. This guide walks through the rate, the reliefs, the forms and the due dates, with one example you repeat using your own numbers.
The rate and the reliefs
– The company tax rate is 17% for YA2026.
– Partial tax exemption: 75% of your first S$10,000 of chargeable income is exempt, plus 50% of the next S$190,000. The largest exempt amount is S$102,500.
– Start-up tax exemption: a new company receives a bigger exemption for each of its first three consecutive YAs. 75% of the first S$100,000 is exempt, plus 50% of the next S$100,000. The largest exempt amount is S$125,000. Shareholder and company-type conditions apply.
– Singapore uses the one-tier system. Your company pays tax on profit, and dividends then reach shareholders tax-free.
The YA2026 rebate and cash grant
The government gives a rebate of 50% of tax payable for YA2026, with a total benefit capped at S$40,000. An active company with at least one local employee in 2025 receives a minimum cash grant of S$2,000, even when 50% of the tax falls below this figure.
The numbers
Take chargeable income of S$150,000 in YA2026.
Company A is past its first three YAs.
– Exempt amount: S$7,500 on the first S$10,000, plus S$70,000 on the next S$140,000, which gives S$77,500.
– Taxable amount: S$72,500.
– Tax at 17%: S$12,325.
– Rebate at 50%: S$6,162.50, so the tax left to pay is S$6,162.50.
Company B is in its first YA, with the same income.
– Exempt amount: S$75,000 on the first S$100,000, plus S$25,000 on the next S$50,000, which gives S$100,000.
– Taxable amount: S$50,000.
– Tax at 17%: S$8,500.
– Rebate at 50%: S$4,250, so the tax left to pay is S$4,250.
With the same profit, the newer company pays S$1,912.50 less tax.
ECI comes first
Estimated Chargeable Income (ECI) is your own estimate of the income IRAS will tax. Submit ECI within 3 months after your financial year end. A company with a 31 December 2025 year end files by 31 March 2026. You skip ECI only when annual revenue is S$5 million or less and your ECI for the YA is nil.
Which form to file
– Form C-S (Lite): optional. Your company must meet all the C-S conditions and have revenue of S$200,000 or below.
– Form C-S: for a Singapore-incorporated company with revenue of S$5 million or below, income taxed at 17% only, and no carry-back, group relief, investment allowance or foreign tax credit claims.
– Form C: for every other company, including foreign-incorporated companies and Singapore branches.
All three forms are due on 30 November of the YA, so 30 November 2026 for YA2026. You file on the myTax Portal. Your staff or agent needs Corppass authorisation for Corporate Tax (Filing and Applications). A dormant company files the Form for Dormant Company by the same date and still files its ACRA annual return.
When you do not file
IRAS uses composition of up to S$5,000, court summons and estimated assessments, which fall due within one month of the notice of assessment. After two or more years of non-filing, the penalty is twice the assessed tax plus a fine of up to S$5,000.
Keep your records all year
Tax is a year-round job. Post invoices and receipts to your books every month, and keep tax records for at least 5 years. Electronic copies are accepted without IRAS approval, so scan paper receipts and store the files with a backup.
GST sits outside this return. The rate is 9%, and registration becomes compulsory when your taxable turnover exceeds S$1 million in the 12 months to a calendar year end.
Send your latest profit figure or your question by WhatsApp to +65 9876 3553 or by email to henry@cschow.com.sg.
Henry Chow
Public Accountant, C S Chow & Co