Dividends

Dividends accrue in the year that they are declared payable.

Under the one-tier corporate tax system, shareholders will not be taxed on dividends paid on or after 1 Jan 2008 by a Singapore resident company.

Generally, the following dividends are not taxable:

1. Dividends paid on or after 1 Jan 2008 by a Singapore resident company under the one-tier corporate tax system except co-operatives;
2. Foreign dividends received in Singapore on or after 1 Jan 2004 by resident individuals. If an individual resident in Singapore receives foreign-sourced dividends through a partnership in Singapore, these dividends may be exempt from Singapore tax if certain conditions are met. For details, please refer to Tax Exemption for Foreign-Sourced Income;
3. Income distribution from Real Estate Investment Trusts (REITs), except distributions derived by individuals through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.

The following dividends are subject to income tax:

1. Dividends paid by co-operatives;
2. Foreign-sourced dividends derived by individuals through a partnership in Singapore. Conditions may apply. For more details, please refer to Tax Exemption for Foreign-Sourced Income;
3. Income distribution from Real Estate Investment Trusts (REITs) derived by individuals through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.

You do not need to declare taxable dividends in your tax form if the organisation(s) indicates on the dividend voucher that they will provide the dividend information to IRAS.

Otherwise, you need to declare all taxable dividends in your income tax return under 'Other Income'.