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asia · SGD · Non-EU

Singapore

Common-law Asian financial centre with a 17% headline corporate tax rate, partial Start-up Tax Exemption, no withholding tax on dividends, and BizFile online incorporation.

Corporate tax17%
VAT9%
StripeAvailable
WiseAvailable

Scorecard

All scores are derived from raw country facts via transparent methodologies — see the individual ranking pages for the underlying weights.

Founder friendliness

76 / 100

SaaS friendliness

75 / 100

Remote business

75 / 100

Tax simplicity

66 / 100

Banking access

50 / 100

Taxation

Headline corporate income tax rate is 17%. The Start-Up Tax Exemption (SUTE) gives qualifying new companies 75% exemption on the first SGD 100,000 of chargeable income and 50% exemption on the next SGD 100,000 for the first three years of assessment. The Partial Tax Exemption (PTE) applies to subsequent years. A 50% corporate income tax rebate (capped at SGD 40,000) applied for YA 2025.

VAT

Singapore Goods and Services Tax (GST) is charged at 9% (raised in two steps from 7% to 8% in 2023 and from 8% to 9% on 1 January 2024). GST registration is mandatory above the SGD 1 million annual taxable turnover threshold.

Company formation

The standard form is a private company limited by shares (Pte Ltd), incorporated via BizFile with the Accounting and Corporate Regulatory Authority (ACRA). At least one local director is required. Formation typically completes within one to two business days for around SGD 315 in government fees, plus corporate-secretary and registered-office costs.

Banking & payments

DBS, OCBC, and UOB are the main domestic options; Aspire and Wise Business are widely used digital alternatives. Bank onboarding typically requires a substance review and clarity on UBO and source-of-funds.

SaaS friendliness

Stripe is fully supported for Singapore-incorporated companies. The Singapore IP Box (under qualifying conditions) and broader R&D incentives are relevant for software companies investing in IP creation locally.

Hiring

Employment is governed primarily by the Employment Act. There is no personal income tax on dividends and a flat employer-side CPF contribution for citizen and PR employees (Singapore citizens and Permanent Residents).

Compliance

Annual return to ACRA, AGM (where applicable), and the Form C / Form C-S corporate income tax return to IRAS. ECI (Estimated Chargeable Income) must be filed within three months of financial year end. UBO register and Significant Controllers Register must be kept current.

Startup ecosystem

Singapore is the regional venture capital and corporate-VC hub for Southeast Asia, with EDB and Enterprise Singapore programmes (including Startup SG Founder, Startup SG Tech, Pioneer Certificate Incentive) available to qualifying companies.

Pros

  • Headline corporate income tax rate of 17%, with a partial Start-up Tax Exemption (SUTE) reducing effective rates for qualifying new companies
  • No withholding tax on dividends to non-residents under Singapore's one-tier corporate tax system
  • BizFile (ACRA) online incorporation typically completes within one to two business days

Cons

  • Singapore corporate bank accounts require strong substance and clear business profile; non-resident-only structures are increasingly scrutinised
  • GST registration becomes mandatory above the SGD 1 million annual turnover threshold
  • Substance requirements for tax incentive regimes have tightened post-BEPS

Best for

  • Founders building APAC-focused operations from a stable financial centre
  • Holding structures benefiting from a one-tier corporate tax system and broad treaty network
  • Companies qualifying for the Start-Up Tax Exemption (SUTE) in their first three years

Not ideal for

  • Founders who want EU single-market access by default
  • Companies with no genuine APAC nexus (substance requirements increasingly enforced)

Related

Sources

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