Interest received from deposits with approved banks or licensed finance companies in Singapore is not taxable.
You can check if a bank is an approved bank or a licensed finance company on the MAS website :
1. 'Commercial Banks' and 'Merchant Banks' for the list of approved banks in Singapore.
2. 'Finance Companies' for the list of licensed finance companies.
Interest from debt securities (e.g. bonds) is also not taxable unless derived from a partnership in Singapore or from the carrying on of a trade in debt securities.
You do not need to declare interest that is not taxable.
When is it taxable
Interest from the following sources is taxable:
- Deposits with non-approved banks
- Deposits with finance companies not licensed in Singapore
- Pawnshops
- Loans to companies, persons etc.
- Interest from refund of excess employee's CPF contributions
- Debt securities (e.g. bonds) that are derived from a partnership in Singapore or from the carrying on of a trade in debt securities.
How to report
You need to declare the full amount of your taxable interest under 'other income' in your tax form.