--- title: "Corporate Tax Incentives in Singapore | Overview" description: "Explore the comprehensive list of corporate tax incentives available in Singapore, including schemes for R&D, international expansion, and specific industries." url: "https://corporate.taxinfo.sg/exemptions/tax-incentives-singapore" language: "en" --- [Home](/) › [Exemptions & Incentives](/exemptions) › Tax Incentives Overview Incentives Overview of Corporate Tax Incentives in Singapore Singapore offers a wide range of tax incentives to attract investment and support businesses. Here's a map of what's available and who qualifies. Who This Is For Business owners, CFOs, and founders exploring ways to reduce corporate tax through government incentive schemes. TL;DR Beyond the headline 17% corporate tax rate, Singapore provides tax incentives that can reduce your effective rate to as low as **0–5%**. Most companies automatically qualify for the [Partial Tax Exemption](/exemptions/partial-tax-exemption). Startups get even more through [SUTE](/exemptions/startup-tax-exemption). Larger companies doing R&D, expanding overseas, or in strategic industries can access additional schemes from EDB and IRAS. Tax Incentives at a Glance Incentive | Benefit | Who Qualifies | Application ---|---|---|--- [Startup Tax Exemption \(SUTE\)](/exemptions/startup-tax-exemption) | 75% exempt on first S$100K, 50% on next S$100K | New companies, first 3 YAs | Automatic [Partial Tax Exemption \(PTE\)](/exemptions/partial-tax-exemption) | 75% exempt on first S$10K, 50% on next S$190K | All companies \(after SUTE expires\) | Automatic Pioneer Certificate Incentive \(PCI\) | 0% or 5% tax on qualifying income for up to 15 years | Companies in strategic industries \(EDB-approved\) | Apply to EDB Development & Expansion Incentive \(DEI\) | 5% or 10% concessionary rate on qualifying income | Companies expanding activities in Singapore | Apply to EDB [Enhanced Deductions](/deductions/tax-deductible-expenses) | 150–400% deduction on qualifying expenses | R&D, internationalisation, training, donations | Automatic\* [Accelerated Capital Allowances](/deductions/capital-allowances) | 1-year or 3-year write-off of qualifying assets | All companies with qualifying capital expenditure | Automatic IP Development Incentive \(IDI\) | 5% or 10% concessionary rate on IP income | Companies with qualifying IP income | Apply to EDB Double Tax Deduction \(DTD\) for Internationalisation | 200% deduction on qualifying overseas market expansion expenses | Companies expanding overseas \(auto for first S$150K\) | Auto / Apply to Enterprise SG \*Some enhanced deductions are automatic; others require prior approval. Check specific scheme requirements. Incentives Every SME Should Know 1\. Startup Tax Exemption \(SUTE\) The most valuable incentive for new companies. Effective tax rate as low as **4.25%** on first S$100K for the first 3 Years of Assessment. [Full SUTE guide →](/exemptions/startup-tax-exemption) 2\. Partial Tax Exemption \(PTE\) Available to all companies after SUTE expires. Reduces effective rate to ~8-9% on first S$200K of chargeable income. [Full PTE guide →](/exemptions/partial-tax-exemption) 3\. Enhanced Deductions for Donations Donations to approved Institutions of a Public Character \(IPCs\) qualify for **250% tax deduction**. A S$10,000 donation gives you S$25,000 in deductions. 4\. Productivity & Innovation Credit \(Expired but Legacy Claims\) PIC has expired, but the government continues to offer enhanced deductions for automation, R&D, and training under various schemes. Worked Example: Stacking Incentives Scenario: InnoTech Pte Ltd — Year 2 Startup Revenue S$500K, net profit S$150K. The company uses multiple incentives: Net profit | S$150,000 ---|--- Less: enhanced R&D deduction \(S$20K × 150%\) | –S$30,000 Less: capital allowances \(IT equipment, 100%\) | –S$15,000 Less: IPC donation \(S$5K × 250%\) | –S$12,500 Chargeable income | S$92,500 SUTE: 75% exempt on S$92,500 | –S$69,375 Taxable after exemptions | S$23,125 Tax payable @ 17% | S$3,931 Effective rate on original S$150K profit | 2.6% By combining enhanced deductions, capital allowances, IPC donations, and SUTE, the effective tax rate drops from 17% to just 2.6%. Common Mistakes * ✗ **Not claiming SUTE in first 3 years:** Many new companies default to PTE. Always select SUTE — it's significantly more generous. * ✗ **Missing enhanced deduction opportunities:** R&D, internationalisation, and training expenses may qualify for 150–400% deductions. * ✗ **Not applying for EDB incentives:** PCI and DEI require application but can reduce tax to 0–10%. If your company is in a strategic sector, explore these. Key Takeaways * ✓ SUTE and PTE are automatic — every company benefits * ✓ Enhanced deductions can multiply your expense claims by 150–400% * ✓ EDB incentives \(PCI, DEI\) can reduce rates to 0–10% for qualifying companies * ✓ Stack multiple incentives to achieve effective rates below 5% * ✓ Check eligibility annually — your company may qualify for new schemes What To Do Next Start with the incentives every company qualifies for: [SUTE](/exemptions/startup-tax-exemption) or [PTE](/exemptions/partial-tax-exemption). Then review enhanced deduction opportunities for [your business expenses](/deductions/tax-deductible-expenses). For a broader view of tax reduction strategies, see our [tax reduction guide](/planning/reduce-corporate-tax). For an overview of Singapore's tax landscape, visit [taxinfo.sg](https://taxinfo.sg/best-tax-reliefs-singapore). [ Related Guide Startup Tax Exemption The most generous incentive for new companies. ](/exemptions/startup-tax-exemption) [ Related Guide Partial Tax Exemption Available to every company, every year. ](/exemptions/partial-tax-exemption) [ Related Guide How to Reduce Corporate Tax 6 legal strategies to lower your tax bill. ](/planning/reduce-corporate-tax) [ TaxInfo Hub Best Tax Reliefs in Singapore Overview of reliefs for individuals and businesses. ](https://taxinfo.sg/best-tax-reliefs-singapore)