Page 6 - Budget-2019-Highlights-en - (For Flip Book)

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

Australia 30 (a)
India 30 (a)
30
Philippines
Indonesia 25 (a)
25 (a)
China 25 (a)
South Korea 24 (a), (c)
23.2 (a)
Malaysia 21
Japan 20 (a), (c)
20 (a)
United States 20 (a)
Vietnam 19 (c), (d)
Thailand 17 (a)
Taiwan 16.5 (a)
12.5 (b)
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 17% with effect from 1 April 2020 (other than ring fence profits).

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.

4 | RSM