Singapore tax revenues rise 17%, with over S$80 billion raised

 

Singapore collected S$80.3 billion (US$61.4 billion) in tax revenue for the 2023/24 financial year, up 17 percent from the previous year.

The increase reflects “strong economic growth and nominal wage growth in Singapore in 2022,” the Inland Revenue Authority of Singapore (IRAS) said on Wednesday (Sept 4).

Total revenue collection represents approximately 77.6% of the government’s operating revenue and 11.9% of Singapore’s gross domestic product.

“The taxes collected are used to fund essential services for our community, grow our economy, improve our living environment and support social development programmes to improve the lives of Singaporeans,” IRAS said.

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The arrears rate for goods and services tax (GST), income tax and property tax remained low at 0.64%.

IRAS said that while compliance with tax rules remains high, it will take tough action against the “small minority of taxpayers who refuse to comply and pay their fair share of taxes.”

In the last financial year, it investigated and verified 9,590 cases, recovering approximately S$857 million in taxes and penalties.

DISTRIBUTION OF TAX REVENUES

Corporate income tax accounted for the largest share of tax revenue collection at 36.1 percent. It increased by 25.6 percent to S$29 billion in FY2023/24, on the back of strong corporate profits.

Personal income tax increased by S$2 billion to S$17.5 billion in the last financial year.

GST accounted for the third largest share of revenue, increasing by S$2.6 billion to S$16.6 billion, driven by higher consumer spending and an increase in the GST rate.

Property tax contributed 7.4% of revenue, amounting to S$5.9 billion.

Stamp duty collection decreased by S$0.1 billion to S$5.8 billion, due to lower real estate transaction volumes.

In the last financial year, IRAS processed approximately S$2.3 billion in disbursements to more than 131,000 companies.

Some of the major grants processed were the Progressive Wage Credit Scheme, with about S$1.67 billion, the Senior Employment Credit Scheme with S$311 million, and the Employment Growth Incentive with S$177 million. [CNA]

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