Page 7 - Budget-2018-Highlights-en-flip

CORPORATIONS AND BUSINESSES

Prevailing Corporate Income Tax Rates in Selected Countries

The corporate income tax rate in Singapore is considered very competitive compared with a number of key
countries mentioned below.

COUNTRY 30 (a)
30 (a)
Australia 30
India 25 (a)
25 (a)
Philippines 25 (a), (e)
Indonesia 24 (a), (c)
23.4 (a), (d)
China 21 (f)
South Korea 20 (a), (c)
20 (a)
Malaysia 20 (a), (g)
Japan 19 (c)
17 (a)
United States 16.5
Vietnam 12.5 (b)
Thailand
Taiwan

United Kingdom
Singapore
Hong Kong
Ireland

0 5 10 15 20 25 30 35
PERCENTAGE

(a) Lower rates or partial tax exemption are applicable for lower income bands, companies with smaller paid-up
capital or those engaged in certain preferred trade activities.

(b) Only applicable to trading income. Different rates apply to other sources of income.

(c) Higher corporate tax rate applicable to activities of exploration and exploitation of oil and gas and other
precious natural resources.

(d) Further reduced to 23.2% for fiscal years beginning on or after 1 April 2018.

(e) Fiscal years beginning on or after 1 January 2018.

(f) For tax years beginning after 31 December 2017.

(g) Taxable years beginning on or after 1 January 2018.

The rates above are headline rates of tax excluding dividend withholding tax, surcharges, cess or other state and
local taxes, where applicable.

Please note that the corporate income tax rates above are based on our current understanding of the respective
countries’ corporate income tax. The chart above is for illustrative purposes only. You should confer with your
respective tax advisors before relying on the information above to make any decisions.

BUDGET 2018 HIGHLIGHTS | 5