Business-Friendly Environment & Transparent Tax Regime

We bolster your growth through pro-business policies

Doing business in Singapore is made easy with our transparent and efficient regulatory framework. With digitised bureaucratic processes, you can incorporate your business in just 1.5 days.

Strong government support
Competitive tax regime
Compliance with global standards
Strong IP protection

From facilitative talent policies to sandboxes to test innovations, here’s how we support business growth.

How the Singapore Government
is helping businesses

S$4 billion to support business growth and upskilling⁽ⁱ⁾

Absorption of bank loan risk (up to 70%) for new companies (<5 years)⁽ⁱⁱ⁾

S$200 million to support businesses in building digital capabilities⁽ⁱⁱⁱ⁾

Grants to support training and building capabilities in research and innovation^(iv)

Tax incentives for qualifying expansionary economic activities^(v)

Learn how to set up your business in Singapore

Sources: (i)(ii) Ministry of Finance (MOF), Singapore Budget 2023, Budget Statement; (iii) Ministry of Trade and Industry, Budget 2022 Singapore Economy 2030: Seizing Opportunities, Energising Enterprises; (iv)(v) Singapore Economic Development Board

Singapore’s tax regime aims to support substantive economic activities here for long-term, sustainable growth. We also have an extensive network of tax treaties with over 90 countries and territories.

Learn more about Singapore’s tax treaties

Singapore’s tax system

Corporate income tax	17% corporate tax rate⁽ⁱ⁾ 250% tax deduction for qualifying expenditure for eligible R&D activities in Singapore⁽ⁱⁱ⁾
Other	No capital gains tax⁽ⁱⁱⁱ⁾ No withholding taxes on dividend payments^(iv)

Learn more about tax for businesses in Singapore

Sources: (i) Inland Revenue Authority of Singapore (IRAS), Corporate Tax Rates; (ii) IRAS, Research & Development Tax Measures; (iii) IRAS, Gains from Sale of Property, Shares and Financial Instruments; (iv) IRAS, Payments That Are Not Subject to Withholding Tax (Accessed 10 February 2023)

As business models evolve and economic circumstances shift, you can be assured that Singapore will strive to provide upfront certainty, where possible, and uphold the necessary standards.

This includes incorporating the necessary directions from the OECD against Base Erosion and Profit Shifting (BEPS).

Measures to ensure trust and enable tax certainty in Singapore

Clear transfer pricing guidelines

The Inland Revenue Authority of Singapore (IRAS) publishes clear and consistent guidelines on appropriate transfer pricing methodologies that businesses in Singapore have to adopt. The guidelines cover special topics such as business models with centralised activities in multinational enterprise groups.

Dispute prevention facilities

Advance Pricing Arrangementshelp companies avoid transfer pricing disputes and obtain early tax certainty for related party transactions. These can include relevant tax treaty partners, if necessary.
Mutual Agreement Proceduresenable IRAS and relevant foreign competent authorities to resolve disputes regarding the application of the avoidance of double taxation agreements.

Advance tax rulings made public

Advance tax rulings provide written interpretations of the Income Tax Act on how specific issues arising from a proposed arrangement should be treated for tax purposes.

Singapore’s intellectual property (IP) regime is consistently ranked among the best in the world. By promoting a progressive IP regime, the Singapore Government ensures that the right regulations are in place to protect your business interests while still enabling the free exchange of ideas.

Explore IP resources to help scale your innovation

For Grab, a leading tech platform in Southeast Asia with a robust portfolio of patents in areas like mobility, food delivery and geo-location technologies, it’s important to seek patent protection across the region in which it operates.

The ASEAN Patent Examination Cooperation (ASPEC), has provided Grab with a coordinated and efficient approach, in a single working language, to do exactly this. The ASPEC is a regional patent work-sharing programme that allows for a faster patent grant process under specified conditions.

Our enhanced IP protection framework, including mediation and enforcement programmes, has resulted in Singapore having the highest number of registered patents in Southeast Asia.

Singapore’s world-leading intellectual property regime

1st in Asia and 2nd worldwide for strong intellectual and physical property rights protection⁽ⁱ⁾

World's fastest approval for artificial intelligence (AI) patents—within 6 months for eligible applications⁽ⁱⁱ⁾

Faster patent to grant pipeline in partner countries for Singapore patent-holders via joint patent acceleration initiativess⁽ⁱⁱⁱ⁾

Well-connected to IP offices globally, allowing companies to file IPs in other markets efficiently^(iv)

Sources: (i) Property Rights Alliance, International Property Rights Index 2023; (ii)(iii)(iv) Intellectual Property Office of Singapore (IPOS), Acceleration Programmes

A hub for innovation, talent, and capital

Headquarters for leading companies

Singapore is a business hub for the world's globally leading companies. We are the most popular regional headquarters destination in the Asia-Pacific⁴, and many companies have their global and regional functions, mandates, or business units in Singapore. All major US tech companies have a substantial presence here and we are a key location for manufacturing and supply chain management in Asia.

Our proximity to fast growing markets in the Asia-Pacific and Southeast Asia, strong talent pool, connectivity, and innovative and business friendly environment, make us an attractive headquarters location. We are ranked first in the Asia-Pacific and second globally for our ability to grow, attract, and retain talent⁵. Our rich business ecosystem allows businesses to collaborate with top multinational companies as well as our 286,000 small and medium enterprises and 4,500 tech startups.

Learn more about setting up headquarters in Singapore
Explore our vibrant startup ecosystem and discover new business opportunities at Startup SG Network

Sources:
⁴ Orbis Crossborder Investment Database
⁵ Insead’s 2023 Global Talent Competitiveness Index

Leading innovation centre in Asia

Source: Global Innovation Index, Innovation Trends and Report 2024 (Asian economies only)

Singapore has built a vibrant ecosystem featuring global R&D and innovation labs for leading Fortune 500 companies from Dell Technologies to Salesforce, as well as over 150 venture capital firms, incubators and accelerators.

We continue to build on our innovation capabilities. Under our Research, Innovation and Enterprise Plan for 2025, we are investing S$25 billion⁶. In 2024, we added S$3 billion⁷ to supercharge Singapore’s advanced manufacturing, sustainability, digital, and healthcare capabilities, and another S$2 billion⁸ into application systems using AI, sensors, and data science.

Sources:
⁶Estimated government investment in research, innovation and enterprise under RIE2025 Plan; Nation Research Foundation, Research, Innovation and Enterprise (RIE) 2025 Plan
⁷Business Times. “Budget 2024: S$2 billion top-up for financial sector development, S$3 billion more into R&D”, 16 Feb 2024
⁸Government investment in application systems using AI, sensors and data science; GovTech, "Government’s FY22 ICT spending to hold steady at $3.8 billion", 10 June 2022

Advanced manufacturing hotspot

With our deep engineering and innovation capabilities, Singapore is recognised as a global leader in high-value manufacturing and the world’s fifth-largest⁹ exporter of high-tech products.

We continue to be a key global manufacturing site for critical products in high-value sectors to serve international demand – accounting for one in ten of all chips produced worldwide, supplying 90% of the global share of microarray chips, and four of the top five pharmaceutical companies by global revenue have manufacturing facilities here. We have one of Asia’s largest and most diverse aerospace ecosystems, with over 130 aerospace companies.

We have five¹⁰ World Economic Forum “lighthouse factories” – the most in Southeast Asia – belonging to Coca-Cola, Micron, Infineon, Agilent Technologies, and HP Singapore.

Sources:
⁹ World Bank Group, High-technology exports (current US$)
¹⁰ World Economic Forum, Global Lighthouse Network

Asia’s hub for green growth

Singapore’s Green Plan 2030 outlines our approach to advancing the sustainability agenda. We are helping businesses operate in a more green and sustainable manner by:

Improving access to renewable energy through innovation and regional collaboration
Harnessing technology to advance decarbonisation pathways
Building an ecosystem with expertise and solutions to support companies with the energy transition
Developing Jurong Island into a global sustainable Energy and Chemicals Park

Businesses can use Singapore as a springboard to capture green growth opportunities in Asia in carbon services and renewable energy.

Learn about how a global city is going green