Interest
Interest is earned from deposits of money with banks, finance companies and / or other financial instruments.
Non-Taxable Interest
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:
- 'Commercial Banks' and
'Merchant Banks' for the list of approved banks in Singapore.
- '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.
Taxable Interest
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; and
- Debt securities (e.g. bonds) that are derived from a partnership in Singapore or from the carrying on of a trade in debt securities.
Reporting Interest
You need to declare the full amount of your taxable interest under 'Other Income' in your income tax return.