Singapore’s corporate tax rate is a flat 17%, but new startups rarely pay that full rate thanks to generous exemptions and rebates designed to fuel early-stage growth.

The most impactful scheme is the Startup Tax Exemption (SUTE) scheme. For the first three consecutive Years of Assessment (YAs), a qualifying startup enjoys a 75% tax exemption on the first S$100,000 of taxable income and a 50% exemption on the next S$100,000. Additionally, for the Year of Assessment 2026, companies are eligible for a 40% Corporate Income Tax (CIT) rebate, capped at S$30,000, providing immediate cash flow relief. For companies investing in research and development, the Enterprise Innovation Scheme (EIS) offers up to 400% tax deductions on qualifying R&D expenses, encouraging innovation