Breakdown of Tax Revenue Collection:
The collection of tax revenue has witnessed an overall uptick, mirroring the post-pandemic economic resurgence. Out of the $7.9 billion augmentation in collections, Corporate Income Tax (CIT) made the most significant contribution, adding $4.9 billion, buoyed by robust corporate earnings. GST experienced a $1.5 billion increment, attributable to heightened consumption and a resurgence in international visitor arrivals. Simultaneously, Individual Income Tax (IIT) saw an increase of $1.3 billion, driven by elevated personal incomes. On the contrary, Stamp Duty collection experienced a 12% decline, equating to a decrease of $0.8 billion, primarily due to a reduced volume of transactions compared to the previous year.
CIT took the lead in IRAS’ revenue collection, contributing $23.1 billion, representing 33.7% of the total. Following closely was IIT, contributing $15.5 billion, accounting for 22.6% of the collection, with 83% originating from taxpayers with annual incomes exceeding $150,000.
Meanwhile, GST occupied the third-largest share in IRAS’ revenue collection, contributing $14.1 billion, or 20.5%. Stamp Duty collection comprised 8.7% of the total revenue, amounting to $6.0 billion, while Property Tax constituted 7.4% of the revenue collection, reaching $5.1 billion.
The cumulative revenue collection encompasses 75.4% of the Singapore Government’s Operating Revenue and constitutes 10.7% of Singapore’s Gross Domestic Product.
$4.6 Billion in Grants Disbursed to Support Businesses and Workers
IRAS allocated a substantial sum of $4.6 billion in grants to facilitate the growth of over 120,000 enterprises, promoting local employment opportunities and fostering wage development for Singaporean citizens. These grants are channeled through various initiatives, with key programs including:
Enhancing Service Delivery to Taxpayers
In October 2022, IRAS unveiled the enhanced mobile-friendly e-Stamping Portal, designed to offer taxpayers a more convenient and user-friendly experience when dealing with stamping procedures. This update introduces several on-the-go features, streamlining the process by reducing form-filling requirements and facilitating bulk stamping for collective sales.
In February 2023, IRAS introduced the Virtual Intelligence Chat Assistant (VICA) Bot, revolutionizing the digital experience for taxpayers. VICA ensures a seamless, personalized, and enhanced interaction, providing instant responses to inquiries related to outstanding taxes, payment status, and the filing status of Form IR21 (tax clearance). Additionally, the Bot can assist with various requests, such as payment processing, reactivation of GIRO plans, and waivers of late filing fees and late payment penalties. Remarkably, 70% of users who have engaged with the Bot have expressed their satisfaction with its performance.
In alignment with the advancement of generative AI chatbots, including technologies like ChatGPT, IRAS has forged a partnership with GovTech to embark on a progressive upgrade for the Bot. This upgrade aims to enhance the Bot’s ability to comprehend users’ intent and respond to more specific queries effectively.
To further promote a seamless filing experience, IRAS has collaborated with software developers to encourage businesses to adopt Seamless Filing from Software (SFFS). In this effort, IRAS has extended filing due dates for businesses utilizing SFFS and offered penalty waivers for certain types of errors. IRAS has also initiated more than 30 engagement sessions, fostering collaboration with taxpayers, stakeholders, and businesses.
These initiatives have yielded tangible results, as evidenced by a 12% increase in the utilization of IRAS’ self-help digital services, which recorded a total of 43 million transactions during FY2022/2023. Moreover, taxpayer contacts were reduced to 1.3 million, marking a 3.6% decrease compared to the preceding fiscal year.
Strengthening Tax Compliance Through Automation, Engagement and Education
We consistently maintain a commendable record of on-time tax filing and payment while ensuring a smooth and hassle-free taxpaying process for the public.
Although the overall tax compliance rate remains robust in Singapore, IRAS remains committed to addressing non-compliance among a small segment of taxpayers.
During FY2022/23, our efforts led to the audit and investigation of 9,019 cases, resulting in the recovery of approximately $499 million in taxes and penalties.
If your company needs help filing taxes for the year 2023, or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at email@example.com. Alternatively, you may leave us a reply using our contact form below.
Keep in touch to receive the latest listing, news updates and special offers delivered directly to your inbox.