Dividend Singapore Taxation – Taxable and Non-Taxable Dividends

Dividend Singapore TaxationAs of 1 January 2008, shareholders in Singapore are no longer taxed on dividends paid by a Singapore resident company under the one-tier corporate taxation system. Dividend Singapore is defined as the profits which are received from your portion of the ownership share in a company. These dividends Singapore (sometimes referred to as Dividend SG) may be paid out to you in two ways, which are either in cash or kind. Based on the dividend taxation in Singapore system, dividends SG which are accrued within the year will be declared payable.

 

What Are Taxable Dividends in Singapore?

The following dividends in Singapore will be subjected to income tax:

  • Income which is gained through the distribution of Real Estate Investment Trusts (REITs). If this income is derived through a partnership in a Singapore company, or through trade, business or profession in REITs, it is considered as taxable dividends in Singapore.
  • Any dividends SG which are paid by co-operatives.
  • Income which is derived from a foreign source through a partnership in Singapore, although terms and conditions may be applicable with this one. More information regarding exemptions can be found here.

 

What Are Non-Taxable Dividends in Singapore?

The following dividends SG in Singapore are not considered taxable:

  • Any dividends Singapore which were paid by Singapore resident companies either on or after 1 January 2008 under the one-tier corporate tax system. However, this excludes co-operatives.
  • Income which has been received through REITs distribution. This excludes distributions which have been derived either through a partnership in Singapore or through trade, business or profession in REITs.
  • Any foreign dividends which were received either on or after 1 January 2004 in Singapore by resident individuals. These dividend Singapore may be exempted from dividend taxation in Singapore provided that certain conditions are met. More information regarding exemptions can be found here.

 

How Do I Report My Dividend Taxation in Singapore?

Taxable dividends in Singapore must be declared on your income tax form under the section labelled ‘Other Income’.

However, you will not need to declare your taxable dividends Singapore in the tax form if it is indicated on the dividend SG voucher that your organisation will provide the necessary dividend information directly to the Inland Revenue Authority of Singapore (IRAS).