Since 1 January 2008, Singapore shareholders have not been taxed on dividends paid by a local company in Singapore under the one-tier corporate taxation system.
Dividends can be defined as profits that are received from your portion of the ownership share in a company. These dividends can be paid out in 2 different ways – either in cash or kind. Based on the dividend taxation system in Singapore, dividends that are accrued within the year are considered to be payable.
💰 Earn a foreign-sourced income? Read Singapore taxation on foreign-sourced income.
Taxable Dividends in Singapore
The following is a list of dividends that will be subjected to income tax in Singapore:
- Any income that comes from the distribution of REITs (Real Estate Investment Trusts) – if this kind of income is derived either through a Singapore local partnership or through a business, trade, or profession in REITs, it automatically becomes a taxable income in Singapore
- Any dividend that has been paid by co-operatives
- Any income that comes through a foreign partnership in Singapore (certain terms and conditions may apply)
Non-Taxable Dividends in Singapore
The following is a list of dividends that are not taxable in Singapore:
- Any dividend that was paid by a Singapore company either on or after January 2008, under the one-tier corporate taxation system – this does not apply to co-operatives
- Any income that comes from the distribution of REITs – this does not include any distributions that have been derived either through a partnership in Singapore or through a business, trade, or profession in REITs
- Any foreign dividend that was received by a resident of Singapore either on or after 1 January 2004 – this kind of dividends may be exempted from dividend taxation in Singapore depending on whether or not certain conditions are met
Reporting Your Dividend Taxation in Singapore
All dividends that are considered to be taxable in Singapore must be declared under the Other Income section of your income tax form. Note that you are not required to declare any of your taxable dividends if they are already indicated on the application that your organization uses to provide IRAS (Inland Revenue Authority of Singapore) with all the necessary dividend information.
Run a Singapore company? Read our useful guides on Singapore tax: