Dividends

Dividends are distributions by a company to its shareholders.

It represents returns on shareholder's capital, which may be paid in cash or in kind. For instance, a company may pay its shareholders in the form of company's shares.

Dividends derived in Singapore are taxable unless they are specifically exempted under the Income Tax Act.

Dividends exempt from tax

Dividends are not taxable if they are

• Foreign dividends received in Singapore on or after 1 Jan 2004. This excludes foreign source income received through partnerships in Singapore.
• Income distributions from unit trusts and real estate investment trusts (REIT), that are authorised under Section 286 of the Securities and Futures Act (excludes distributions out of franked dividends) on or after 1 Jan 2004.
• One-tier exempt dividends from companies under the one-tier corporate tax system.

How to report

You need to declare the taxable dividends under 'other income', and the amount of tax deducted (please refer to your dividend vouchers/statements) under ‘Singapore tax deducted at source’ in your tax form.

However, if you hold a Singapore NRIC, the relevant companies paying the dividends will provide information on your taxable dividends to us. You need not declare the dividends (this does not apply to dividends received by joint account holders or where shares are held through nominees).

Find out more about how to submit your tax return.