Taxes in Singapore at $52.4 billion For FY 2018/19
IRAS Pulls in $52.4 Billion in Taxes, a 4.4% Increase From Last Year
It’s a good FY 2018/19 in Singapore, as taxman pulls in $52.4 billion in Singapore taxes amid healthy economic expansion.
The Inland Revenue Authority of Singapore (IRAS)’s annual report said this year’s taxes was up 4.4% from a year ago. Thanks to a 3.1% expansion in Singapore’s economy and a low 2.1% employment rate. Favourable economic performance certainly had a role to play in the higher tax collection.
What IRAS collected in taxes in Singapore will account for 71.1% of the government’s operating revenue. This number represents 10.6% of the country’s GDP economic output. However, economists are predicting tax collection to slow down for the rest of the year in line with the current slowdown in the economy.
Singapore slashed its full-year growth forecast. The current forecast is zero to 1%, which is the slowest growth rate all decade. This is partly due to the direct onset of the US-China trade war, which has affected growth prospects globally.
Taxes in Singapore makes its bulk revenue from income tax. This includes corporate income taxes, withholding taxes and individual income taxes. Individual income tax experienced an increase of 9.2%, thanks to an overall relief cap of $80,000 per YA. The cap was introduced in YA 2018.
Corporate income taxes in Singapore also increased by 7.3%. Following this was GST as the next biggest category, comprising 21% of the total collection. The number taxpayers with an assessable income of more than $1 million rose to 6.9%.