Page 6 - RSM Budget 2020 Highlights

CORPORATIONS AND BUSINESSES

Prevailing Corporate Income Tax Rates in Selected Countries
The corporate income tax rate in Singapore is considered very competitive compared to a number of other
countries listed below.

COUNTRY

Australia 30 (a)

India 30 (a)
Philippines 30
Indonesia 25 (a)

China 25 (a)

South Korea 25 (a)
Malaysia 24 (a), (c)

Japan 23.2 (a)
United States 21

Vietnam 20 (a), (c)
Thailand 20 (a), (c)

Taiwan 20 (a)
United Kingdom 19 (c) (d)

Singapore 17 (a)
Hong Kong 16.5 (a)

Ireland 12.5 (b)

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% for fiscal year beginning 1 April 2020 (for all profits except for companies that make
profits from oil extraction or oil rights).

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 tax
advisors before relying on the information above to make any decisions.

4 | RSM