Taxable and Non-Taxable Dividends in Singapore

Profits made from a company in Singapore is distributed to its shareholders, which is called dividend. Dividends are accrued in the year which they will be declared payable. Each shareholder receives dividends based on their share, and these dividends may be paid out to the shareholders either in cash or kind. From 1 January 2008 onwards, Singapore has a one-tiger tax system so shareholders are exempted from tax on dividends which are paid by a Singapore resident company. Here’s all the information you need to know about non-taxable and taxable dividends in Singapore.

Non-Taxable dividends in Singapore

In general, dividends in Singapore which are not subjected to income tax listed belows:

  • Any dividends paid by a Singapore resident company either on or after 1 Jan 2008 under the one-tier corporate tax system except co-operatives;
  • Foreign dividends which are received in Singapore paid by resident individuals either on or after 1 Jan 2004. These dividends may be exempt from Singapore tax if an individual resident in Singapore receives foreign-sourced dividends through a partnership in Singapore, and these dividends are met some certain conditions. For more detail, please find out at Tax Exemption for Foreign-Sourced Income;
  • Income received through Real Estate Investment Trusts (REITs) distribution but except distributions derived by individuals through a partnership in Singapore, or through trade, business or profession in REITs.

Taxable dividends in Singapore

The following dividends are considered taxble in Singapore as follows:

  • Any dividends paid by co-operatives;
  • Income is derived from foreign-sourced through a partnership in Singapore. Some certain conditions may apply;
  • Income which has been made from Real Estate Investment Trusts (REITs) derived by individuals through a partnership in Singapore, or through trade, business or profession in REITs.

Source: Inland Revenue Authority of Singapore 

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