Corporate Tax

Corporate Tax

As a general rule, all companies are taxed on the income they earned in the previous financial year - meaning that income earned in the financial year 2020 will be taxed in 2021. This also means that the Year of Assessment (YA) will be in 2021. The basis period, otherwise known as the financial year of a company will generally refer to a  12 month period before the YA.

Corporate Tax Rate

Per 2010 onwards, companies are taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign entity.

Tax Schemes

  • Tax Exemption Scheme for New Start-Ups

New companies are given 75% tax exemption on the first $100,000 of their chargeable income, followed by a 50% tax exemption on the next $100,000 of their chargeable income for the first three consecutive years IF their YA falls in YA 2020 onwards.

Where the YA falls in 2010 to 2019, new companies are given full exemption on the first $100,000 of their chargeable income, followed by a further 50% on the next $200,000 of normal chargeable income.

For more information on the qualifying conditions, please contact us here.

  • Partial Tax Exemption for all companies

All companies including those limited by guarantee can enjoy tax exemptions of 75% on their first $10,000 of their normal chargeable income, followed by a further 50% on the next $190,000 of their normal chargeable income where their YA falls in YA2020 onwards.

Where the YA falls in 2010 to 2019, companies enjoy tax exemptions of 75% on their first $10,000 of their normal chargeable income, followed by a further 50% on the next $290,000 of their normal chargeable income.

  • Corporate Income Tax Rebate.

This rebate is to help companies ease business costs and support restructuring. For more information on the scheme, please contact us here.

The rates are shown below:

 

Percentage of Income Tax RebateCapped atYA
25%$15,000
2020
20%
$10,0002019
40%$15,0002018
50%$25,0002017
50%$20,0002016
30%$30,0002013 to 2015