Total Profit Before Tax and Corporate Tax Paid by Companies from 2018 to 2022

Ms Hazel Poa asked the Deputy Prime Minister and Minister for Finance in each of the years from 2018 to 2022, what is the total profit before tax and corporate tax paid by companies with (i) up to $10,000 (ii) from $10,000 to $200,000 (iii) from $200,000 to $1 million (iv) from $1 million to $10 million (v) from $10 million to $100 million (vi) from $100 million to $1 billion and (vii) more than $1 billion, in profits respectively.

Table 1a shows the requested information for the total accounting profit before tax (PBT) by companies in the respective PBT brackets. The information is based on companies assessed by the Inland Revenue Authority of Singapore (IRAS) in each Year of Assessment (YA). Information for YA 2022 is not yet available.

Table 1b shows the total corporate income tax (CIT) paid by companies in the respective PBT brackets.

The Member may be asking for the above data to compute the effective tax rates (ETR) for companies. But to compute the ETR, we use the chargeable income before group relief, loss carry back, partial tax exemption and startup tax exemption, and not their accounting PBT. As mentioned before, the average ETR for SMEs (that is, companies with turnover of up to S$100 million) was 3.4% for YA 2010 and 2.8% for YA 2019. The average ETR for non-SMEs (that is, companies with turnover exceeding S$100 million) was about 8% to 10% over the same period.