- Most dividends in Singapore are tax-exempt for individuals. Under the one-tier corporate tax system, dividends paid by Singapore-resident companies are generally not taxed again when received by shareholders.
- Foreign-sourced dividends may qualify for tax exemption. If certain conditions are met under Singapore’s foreign-sourced income exemption rules, foreign dividends received in Singapore can also be tax-exempt.
- Some dividend income may still be taxable. For example, dividends paid by co-operatives or certain foreign dividends that do not meet exemption conditions may be subject to tax.
- Singapore’s dividend tax system avoids double taxation. Because companies already pay corporate tax on their profits, shareholders typically receive dividends without additional tax liability.
You might be wondering, “Are dividends taxable in Singapore?” The short answer is no, in most cases they aren’t.
Singapore uses a one-tier corporate tax system, which means once a company has paid tax on its profits, any dividends it pays to shareholders are tax-free. If you receive foreign dividends (from overseas companies), they are also usually not taxable for individuals living in Singapore. Likewise, most REIT distributions are tax-exempt too.
However, there are some exceptions, such as dividends from co-operatives, those received through a partnership, or dividends from business or trading activities.
In this guide, you’ll learn:
- Which dividends are tax-free for individuals and companies
- When dividends may be taxable (e.g., co-operatives, partnerships, business income)
- Examples of common non-taxable dividends
- Tips on how to report dividends in your 2026 tax return
What are dividends?
Dividends are profits that a company shares with its shareholders. They can be paid in cash or as additional shares in the company.
For example, if you own shares in a company, it may give you extra shares instead of a cash payout. These payments can come from Singapore companies or foreign companies, and the tax treatment depends on where the dividends come from and how you receive them.
Is dividend taxable in Singapore?
When it comes to individuals, in most cases, dividends are not taxable. Singapore follows a one-tier corporate tax system, which means once a company has paid corporate tax on its profits, the dividends it pays to shareholders are tax-free.
So, when you receive dividends from a Singapore company, you don’t have to pay tax again on that income.
Non-taxable dividends in Singapore
According to the Inland Revenue Authority of Singapore (IRAS), the following types of dividends are not taxable:
- Dividends from Singapore-resident companies
- These are paid under the one-tier corporate tax system, where corporate tax is already final.
- Exception: Dividends paid by co-operatives (e.g., NTUC FairPrice Co-operative Ltd, NTUC Healthcare Co-operative Ltd, Singapore Police Co-operative Society Ltd) are taxable.
- Foreign dividends received by resident individuals
- Foreign dividends are not taxable when received in Singapore by individuals.
- Exception: If the foreign dividends are received through a partnership in Singapore, they may be taxable unless specific conditions for exemption are met.
- Income distributions from Real Estate Investment Trusts (REITs)
- REIT income is generally not taxable for individuals.
- Exceptions: If the REIT income is received through a partnership or comes from carrying on a trade, business, or profession, it becomes taxable.
Examples of non-taxable dividends in Singapore
According to the IRAS, many common types of dividends in Singapore are not taxable. These include:
- Dividends from companies listed on the Singapore Exchange (SGX). You can find these in your Central Depository (CDP) statement.
- Dividends from private Singapore-resident companies, since corporate tax has already been paid.
- Dividends received through approved CPF Investment Scheme agent banks, as shown in your Annual Dividend Statement (ADS).
- Dividends from unit trusts that are based in Singapore.
- NTUC FairPrice dividends, unless they are received through a co-operative.
- Share buyback proceeds made through Special Trading Counters (STC).
These examples show how most dividend income in Singapore is tax-exempt for individual investors.
When are dividends taxable in Singapore?
Most dividends are tax-free in Singapore, but there are a few situations where they can be taxable:
|
Situation |
Taxable? |
Notes |
|
Dividends from co-operatives |
✅ Yes |
Subject to individual’s tax rate |
|
Dividends received through a partnership |
✅ Yes |
Unless qualifying for exemption |
|
Dividends from business/trading activity |
✅ Yes |
Treated as business income |
|
REIT income received via trade or partnership |
✅ Yes |
Not exempt |
|
Dividends from foreign companies (corporate taxpayers) |
⚠️ Maybe |
May be taxable unless exemption under Section 13(8) applies |
Are dividends taxable in Singapore for corporate taxpayers?
If you’re a corporate taxpayer (for example, a Singapore-incorporated company receiving dividends from overseas subsidiaries), note that foreign-sourced dividends may be taxable unless they qualify for exemption.
To qualify for exemption under Section 13(8) of the Income Tax Act, a Singapore tax-resident company must meet the IRAS conditions:
- The foreign-sourced dividend has been subject to tax in the foreign jurisdiction (this includes any underlying tax paid by the dividend-paying company);
- The foreign jurisdiction’s headline corporate tax rate is at least 15% when the income is received in Singapore; and
- The Comptroller of Income Tax is satisfied that granting the exemption is beneficial to the Singapore company.
Dividend withholding tax in Singapore
Good news. Singapore does not charge any dividend withholding tax.
When a Singapore company pays dividends to its shareholders, no additional tax is deducted, whether you are a local resident or a foreign investor.
Once the company has paid corporate tax on its profits, those dividends are considered fully taxed and final. Shareholders receive the full dividend amount with no further deduction.
Note: While there is no withholding tax on company dividends, certain REIT distributions are treated differently:
- Non-resident non-individual investors may face withholding tax (generally 10 % through 31 Dec 2030).
- Always check IRAS’ REIT guidelines if this applies to you.
This no-WHT rule on company dividends makes Singapore an attractive hub for both individuals and businesses.
Reporting dividends to IRAS
When filing your taxes, it’s important to know when and how to declare dividend income. Here’s what to keep in mind:
- Dividends are reported as income in the year they are declared payable to shareholders.
- Only taxable dividends need to be included in your Income Tax Return under the “Other Income” section.
- If the company has already informed IRAS about your dividends (as stated in your dividend voucher), you don’t need to declare them again.
- Keep your CDP statements, dividend vouchers, and ADS records to confirm whether your dividends are taxable or tax-free.
How Sleek helps with tax compliance in Singapore
Understanding whether dividends are taxable in Singapore can be confusing, especially if you receive income from different sources, such as private companies, REITs, or overseas investments.
That’s where Sleek comes in.
Our team of experienced corporate tax advisors helps you:
- Assess your dividend income to determine if it’s taxable or exempt under IRAS rules.
- Ensure compliance with Singapore’s one-tier corporate tax system and foreign-sourced income exemptions.
- Prepare and file accurate corporate tax returns, including reporting only the dividends that need to be declared.
- Optimise your business or investment structure to benefit fully from Singapore’s 0% dividend tax regime.
With Sleek, you focus on building your wealth while we take care of your tax compliance so your money works harder for you.
Schedule a consultation with our experts at Sleek.
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FAQs: Are dividends taxable in Singapore?
Is dividend income taxable in Singapore for individuals?
For most individuals, dividend income in Singapore is exempt from tax. Payments from Singapore-resident companies are covered under the one-tier corporate tax system, which removes double taxation. That said, certain dividends (such as those from co-operatives or earned through professional trading) are taxable at the individual’s prevailing income tax rate. If unsure, it’s best to verify through IRAS.
Is dividend income taxable in Singapore for individuals if it’s foreign?
Foreign-sourced dividends received by resident individuals are generally not taxable in Singapore. The key exception occurs when such dividends are received through a partnership in Singapore. In that case, they may be subject to tax unless specific exemption conditions under the foreign-sourced income provisions are met. Always keep records of the dividend source and the mode of receipt.
Are REIT distributions taxable for individuals in Singapore?
REIT distributions are usually not taxable for individual investors in Singapore. This exemption encourages investment in real estate investment trusts. However, if the income is derived through a partnership or linked to a trade, business, or professional activity in REITs, it becomes taxable. You should confirm the classification of your REIT income when filing taxes to remain compliant.
Is there dividend withholding tax in Singapore?
No, Singapore does not impose a dividend withholding tax on payments to either residents or non-residents. Once corporate tax has been paid by the Singapore-resident company, the dividend distribution is considered tax-exempt. This feature makes Singapore a globally attractive jurisdiction for both local and foreign investors seeking efficient dividend repatriation without additional withholding obligations.
Do I need to declare dividends when filing my tax return in Singapore?
You only need to declare taxable dividends in your Singapore income tax return under the “Other Income” section. Non-taxable dividends, such as those from companies under the one-tier system, don’t need to be reported unless IRAS requests them. Check your dividend voucher. If it states the company will furnish the details to IRAS, you can omit the declaration.
Are dividends from co-operatives taxable in Singapore?
Yes. Dividends from co-operatives are taxable and must be declared in your annual income tax return. Examples include payouts from NTUC FairPrice Co-operative Ltd or the Singapore Police Co-operative Society Ltd. These are treated as additional income and taxed at your personal rate. Co-operative members should keep dividend statements for accurate reporting during tax season.
What records should I keep for dividend income in Singapore?
There is no separate dividend tax rate in Singapore for individuals. Most dividends are exempt. Where dividends are taxable (e.g., from co-operatives or derived from a trade/business), they are taxed at your personal income tax rate for that Year of Assessment.
