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Dividends

Dividends are profits you receive from your share of ownership in a company, which may be paid out to you in cash or in kind. For example, a company may pay its shareholders dividends in the form of company's shares.
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Tax Treatment of 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.

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Non-Taxable Dividends

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.
Examples of Non-Taxable Dividends
  • Dividends from resident companies listed on the Singapore Stock Exchange, as shown in the statement from Central Depository Pte Ltd (CDP)
  • Dividends from share buyback through Special Trading Counters (STC)
  • Dividends from private resident companies
  • NTUC Fair-Price dividends (except for dividends received through co-operatives)
  • Singapore dividends from approved CPF investment Scheme agent banks, as shown in the Annual Dividend Statement (ADS)
  • Singapore dividends from unit trusts
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Taxable Dividends

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. (Note: Such dividends may qualify for tax exemption if certain conditions are met. 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.
Examples of Taxable Dividends
  • MCCY Registry of Co-operative Societies
  • NTUC Fairprice Co-operative Ltd
  • NTUC Healthcare Co-operative Ltd
  • The Singapore Police Co-operative Society Ltd
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Reporting Dividends in Your Tax Return

You do not need to declare taxable dividends in your income tax return 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'.

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