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The reduced rate is for new companies. All other companies also get exemption but that is of slightly smaller amount. Still the % is roughly true. For a company with 200 K profit 102.5 K is exempted and effective tax rate will come somewhere near to 8.5% (This is for 2021). Dividend is tax free.

@@epicasingaporecompanyregis2325 thank you sir for answering. My last question is, what if I simply don't do any business whatsoever in singapore -- all my clients and suppliers are in other countries -- and then I don't remit any revenue or profit into singapore (so I bank in malaysia for example) -- then I would be totally tax exempt right? I wouldn't owe any corporate tax in singapore anyway, correct? Is this easy to achieve in singapore nowadays providing you follow those rules? Or is it difficult to qualify for that like it is nowadays in Hong kong -- where even though you may on paper be eligiable to be a tax exempt company, you have to ask for the exemption from the government, and applying costs you like 5000 in tax lawyer fees, and it takes 2-3 years for the HK gov to even tell you if you qualified or not. Is singapore more easy for this process and getting the 0% corporate tax rate when you don't remit any money into singapore? How easy is it to open a bank for a singapore company in malaysia and other jurisdictions?

@@thecontainerthecontents6889 Difficult in reality. People will be afraid of providing you a local director if the bank account is overseas. Lot of responsibilities on local nominee director now from 2021.

Under Section 10(25) of the Income Tax Act, income from outside Singapore is considered received in Singapore when it is: 1) remitted to, transmitted or brought into Singapore; 2) used to satisfy any debt incurred in respect of a trade or business carried on in Singapore; or 3) used to purchase any moveable property (such as equipment, raw material etc.) brought into Singapore. Point no 2 is important. When you apply that income to any business liabilities (for example purchase invoices ) it will be considered as received. Understand one thing, receiving income and not using it in normal business is not easy, unless that income is one off and kind of investment income or interest earned.

@@epicasingaporecompanyregis2325 what if i just use the income to pay for my life in singapore. Nothing else. so food, rent, entertainment.

@@thecontainerthecontents6889 How that income will come in your hand? it is company income, you reced it as salary? Also there is concept of tax residency of a corporate entity. If management and control resides in Singapore then even if company is registered overseas it is subject to taxes in Singapore.

You're very welcome!

If the company in loss, then obviously there is no tax payable. The loss can also be carried forward to next year subject to certain conditions.