Singapore Startup Taxes: What You Need to Know in Year 1
Starting your own business is exciting—until tax season rolls around.
But don’t panic! Singapore has one of the world’s most business-friendly tax systems, especially for startups.
Here’s a simple guide on what you need to know about your company’s taxes in the first year.
1️⃣ Corporate Income Tax
✅ Flat Rate: 17% on chargeable income.
BUT—you get generous startup exemptions:
75% exemption on the first $100,000
50% exemption on the next $100,000
Translation? Many small companies pay less than 17% effective tax in the first few years.
💡 Tip: Keep proper financial records so you can claim these exemptions without hassle.
2️⃣ Filing Deadlines
Estimated Chargeable Income (ECI): Within 3 months after your financial year-end.
Annual Tax Return (Form C-S or C): By 30 November each year.
Miss the deadlines? You risk penalties or enforcement actions from IRAS (the tax authority).
3️⃣ Do I Need to Register for GST?
✅ Only if your revenue exceeds $1 million/year.
If you’re below that, GST (Goods and Services Tax) registration is optional. But if you plan to scale quickly or deal with GST-registered clients, it might make sense to register early.
4️⃣ What Can I Deduct as Business Expenses?
You can deduct:
Employee salaries and CPF contributions
Rent and office expenses
Marketing and advertising
Professional fees (yes, including corporate secretary fees)
⚠️ Keep invoices and receipts—IRAS can request them during audits.
5️⃣ Common Mistakes First-Time Founders Make
🚫 Mixing personal and business expenses
🚫 Ignoring ECI filing (even if you made no profit)
🚫 Assuming they’re “too small” to get audited
🚫 Forgetting to track shareholder loans or capital injections properly
How We Help
At Paperwork.sg, we:
✅ Track your tax deadlines
✅ File your ECI and annual returns
✅ Keep your books clean, so you can sleep better at night
Startup taxes don’t have to be scary. We’ll help you navigate it all.