Apple pays US$3.3 billion in Singapore income tax for FY2026, benefiting from lower taxes

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The city-state’s tax rates and incentives reduces the tech giant’s tax expense by US$5.5 billion

The city-state’s tax rates and incentives reduces the tech giant’s tax expense by US$5.5 billion

[SINGAPORE] Apple paid US$3.3 billion in income tax to Singapore in its 2026 financial year, benefiting from the Republic’s lower tax rates and incentives.

The payment, disclosed in the iPhone maker’s annual report for the year ended Sep 26, accounted for about 9.4 per cent of its worldwide cash income tax payments of US$34.6 billion.

Apple’s annual report also showed that Singapore’s tax rates and incentives reduced its tax expense by US$5.5 billion, compared with applying the US federal statutory rate of 21 per cent.

However, the American company’s tax savings were partly offset by a separate US$2.5 billion top-up tax expense arising from Singapore’s implementation of a 15 per cent global minimum tax.

In its Budget 2024, Singapore announced the tax for financial years beginning on or after Jan 1, 2025, as part of an international framework to ensure large multinational companies operating in the Republic pay a minimum effective tax rate of 15 per cent.

While Singapore’s standard corporate income tax rate is 17 per cent, incentives and exemptions can reduce companies’ effective rates. The top-up tax applies when the effective rate calculated under the minimum tax rules falls below 15 per cent.

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Including the top-up tax and another US$311 million in other local tax adjustments, the net reduction in Apple’s tax expense attributable to the Republic was about US$2.7 billion compared with the US benchmark.

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