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Singapore’s robust economic growth was fueled by a total tax revenue of $80.3 billion. To support businesses and workers during this period, the government disbursed $2.3 billion in enterprise grants. Additionally, Singapore has been investing in digital tax solutions to streamline processes and enhance efficiency for businesses.

The Inland Revenue Authority of Singapore (IRAS) reported a significant 17% increase in tax revenue for Financial Year (FY) 2023/24, reaching $80.3 billion. This growth reflects Singapore’s robust economic expansion and rising wages during the year.

Tax revenue contributed substantially to the government’s finances, accounting for 77.6% of its operating revenue and 11.9% of the country’s Gross Domestic Product. These funds are allocated to essential services, economic development, infrastructure improvements, and social programs that benefit Singaporeans.

Beyond tax collection, IRAS disbursed nearly $2.3 billion to support businesses and workers. Additionally, the agency maintained a low arrears rate of 0.64% for Income Tax, Goods and Services Tax, and Property Tax.

Breakdown of Tax Revenue Collection

Corporate Income Tax (CIT) saw a substantial increase of 25.6%, reaching $29.0 billion in FY2023/24 from $23.1 billion in the previous year. This growth was driven by strong corporate performance and accounted for the largest portion of IRAS’s revenue collection at 36.1%.

Individual Income Tax (IIT) followed closely, contributing 21.8% of the total revenue ($17.5 billion). A $2 billion increase in IIT was attributed to higher wages and a growing number of taxpayers.

The Goods & Services Tax (GST) remained the third-largest revenue source, representing 20.7% of the total ($16.6 billion). Increased consumer spending and a higher GST rate contributed to a $2.6 billion rise in GST revenue.

Property Tax accounted for 7.4% of the revenue ($5.9 billion), while Stamp Duty collection declined slightly by $0.1 billion due to lower property transaction activity, representing 7.2% of the total revenue.

Close to $2.3 Billion in Grants Processed to Support Businesses and Workers

During FY2023/24, IRAS disbursed approximately $2.3 billion to over 131,000 businesses, supporting their operations, workforce, and job creation. These grants were distributed through various schemes, with the Progressive Wage Credit Scheme (PWCS), Senior Employment Credit (SEC), and Jobs Growth Incentive (JGI) being the most prominent:

• Progressive Wage Credit Scheme (PWCS): $1.67 billion was allocated to over 81,000 employers under the enhanced PWCS to provide wage support for lower-wage workers. The government increased its co-funding for these employees.
• Senior Employment Credit (SEC): $311 million was disbursed to more than 82,000 employers who hired Singaporean workers aged 55 and above. This supported businesses in offsetting the increased costs associated with the higher retirement and re-employment ages.
• Jobs Growth Incentive (JGI): $177 million was provided to over 21,000 businesses to encourage local hiring and create quality, long-term jobs for Singaporeans.

Partnering Stakeholders to Co-create Digital Solutions for Seamless Transactions

IRAS is actively collaborating with technology providers and stakeholders to expand and refine its Application Programming Interfaces (APIs), enabling businesses to seamlessly integrate tax transactions directly into their accounting and payroll systems. This streamlined process significantly reduces time and effort for businesses.

Recent initiatives include:

• InvoiceNow: This platform facilitates e-invoicing and simplifies GST compliance. IRAS will mandate the use of InvoiceNow for all GST-registered businesses, starting with newly incorporated companies in November 2025 and expanding to all voluntary GST registrants by April 2026.
• One-Stop Payroll (OSP): IRAS, in partnership with the Central Provident Fund Board, Ministry of Manpower, and GovTech, has developed OSP to streamline the submission of employment and wage-related information to multiple government agencies through a single payroll software. This initiative leverages IRAS’s existing Submission of Employment Income API.

To date, over 120 software providers and resellers have partnered with IRAS to develop 46 unique software products that simplify tax filing and payment processes for businesses.

Despite Singapore’s high rate of tax compliance, IRAS remains vigilant in enforcing tax laws against the minority of taxpayers who fail to fulfill their obligations. In FY2023/24, the agency conducted audits and investigations on 9,590 cases, resulting in the recovery of approximately $857 million in taxes and penalties.

For further details, please refer to the IRAS Annual Report FY2023/24 and tax statistics.

If your company needs help filing taxes for the year 2024, or requires assistance with Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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