Singapore is considered as one of the leading countries that continue to reduce corporate tax rates while introducing several tax incentives for the purpose of attracting and keeping global incentives. Moreover, this country also utilizes a single tier corporate taxation system that has a flat rate. Basically, the effective low tax rates of the country in addition to the country’s business friendliness campaign are considered as the two main factors that contribute to the rising economic growth as well as increasing foreign investment of the country (info source: Why Singapore is A Hot Spot For International Business).
The Single Tier Corporate Taxation System 

Last January 1, 2003, the country has started adopting a single tier corporate taxation system. This type of tax system means that there is no double tax fee that is placed on stakeholders. The tax paid by the company on their chargeable income is considered as the final tax. Moreover, all the dividends that are paid by the company to their shareholders are actually exempted from any further taxation. With this type of tax system, one can find no tax on the capital gains in the country. Capital gains would include gains found in foreign exchange on the capital transactions, gains on sales of some fixed assets, and many others.
Corporate Income Tax Rates 

The highest corporate tax rate that has been noted in Singapore is at flat 26 percent. While this may seem like a high rate, it has been noted that the income tax rates have been lowered down in a consistent manner. The dropping down of the income tax rate has made Singapore an attractive investment destination.

From 26 percent tax rate noted for the years 1997 to 2000, the rate has dropped down to 25.5 percent in the year 2001 and 24.5 percent for the next year. In 2003 to 2004, the income tax rate has dropped to 22 percent. In 2005 to 2006, the rate has dropped to 20 percent. In the year 2007 to 2009, the income tax rate became 18 percent. For the years 2010 to 2012, the rate has dropped to 17 percent.
General Tax Incentives In Singapore 

If a business investor will consider having a company formation in Singapore, these tax incentives may be applied. An example of the tax incentives in Singapore would be the 0% tax rate for a $ 100K taxable income. Moreover, the corporate income tax rate is at 0 percent for the first S$100K taxable income for each of the first 3 tax filing years for the newly incorporated business or company. The company must be incorporated in the country, must be a tax resident, and should have no more than 20 shareholders.

If you are interested in investing in company formation in Singapore, you can check out this site, to guide you with setting up business in Singapore.