Corporate tax computation: from profit to tax payable

How it works

Tax starts from profit in the accounts, then follows a fixed order. Add back expenses the law does not allow, such as accounting depreciation, fines, private car costs and general provisions. Take out income that is not taxable, such as capital gains. Deduct capital allowances in place of depreciation, then losses brought forward, then donations, which qualify for a 250% deduction until 31 December 2029. The result is chargeable income.

Then apply the exemption, tax the rest at 17%, and deduct the YA2026 rebate: 50% of tax payable. The rebate and the S$2,000 cash grant together are capped at S$40,000, so the rebate is capped at S$38,000 for a company that also receives the grant. These figures reflect the enhancement announced on 7 April 2026. The tool treats all income as one pool, which suits most small companies; the full return separates trade and other income, and carry-forwards are subject to the shareholding test.

Worked example