IRAS Annual Report FY2025/26
- $97.3 billion in tax revenue collected to support Singapore’s growth, with strong compliance and low arrears
- $1.2 billion in enterprise grants processed to support over 126,000 businesses
- Digital as the default for a more seamless tax experience
- Near-total adoption of digital payment services
The Inland Revenue Authority of Singapore (IRAS) collected $97.3 billion in tax revenue for Financial Year (FY) 2025/26, 9.4% higher than in FY2024/25, amid stronger economic activity and consumer spending. The total tax revenue collected accounts for 74.8% of the Singapore Government’s Operating Revenue and 12.3% of Singapore’s Gross Domestic Product.
2 Beyond tax collection, IRAS processed close to $1.2 billion in payouts to support businesses and workers, contributing to national resilience and inclusive growth.
3 The arrears rate for Income Tax, Goods and Services Tax (GST), and Property Tax remains low at 0.64% of net tax assessed. This means most taxpayers are paying their taxes on time, highlighting both the strong commitment of taxpayers and effective enforcement to uphold compliance.
Breakdown of FY2025/26 Tax Revenue Collection
4 Tax revenue remains a key contributor to Singapore’s nation‑building efforts. It enables us to build strong and inclusive communities, enhance public services and infrastructure, and support sustainable economic growth.
- Corporate Income Tax (CIT) increased to $34.4 billion in FY2025, up from $30.9 billion in the previous FY. It remained the largest source of IRAS’ revenue collection, accounting for 35.4% of total collection.
- GST was the second-largest contributor at 22.3% ($21.7 billion), up from $20.0 billion in the previous FY. The increase reflected higher consumer spending.
- Individual Income Tax (IIT) accounted for the third-largest share of IRAS’ revenue collection at 21.5% ($20.9 billion), up from $19.1 billion in FY2024.
- Property Tax and Stamp Duty contributed 7.1% ($6.9 billion) and 7.5% ($7.3 billion) of IRAS’ revenue collection respectively.
Close to $1.2 Billion in Grants Processed to Support Over 126,000 Businesses
5 In FY2025/26, IRAS processed close to $1.2 billion in disbursements to about 126,200 businesses through various support schemes, strengthening support for businesses, workers, and jobs. These included key schemes such as the Progressive Wage Credit Scheme (PWCS), Senior Employment Credit (SEC), and CPF Transition Offset (CTO).
Digital as the Default for a More Seamless Tax Experience
6 IRAS continues to advance digitalisation across the tax ecosystem, making tax processes simpler for businesses and individuals. From enabling businesses to integrate e-invoicing into their operations, to simplifying filing and expanding digital services, these efforts are delivering greater convenience, efficiency, and ease for taxpayers.
7 Key initiatives include:
- Driving Business Digitalisation Through GST InvoiceNow Requirement
Announced at the Ministry of Finance’s Committee of Supply 2026, IRAS and the Infocomm Media Development Authority (IMDA) have introduced the GST InvoiceNow Requirement, marking a key milestone in Singapore’s nationwide e-invoicing journey. All GST-registered businesses in Singapore will be required to onboard InvoiceNow and submit invoice data directly to IRAS via the InvoiceNow network, and this will be implemented in phases from April 2028 to April 2031. This initiative will streamline invoice processing, reduce manual errors and administrative effort, and support faster payment cycles. The phased rollout gives businesses sufficient lead time to prepare, with continued support such as InvoiceNow Grants from IRAS and IMDA to ease the transition.
- Effortless Filing for Most Taxpayers
Around 128,000 employers are on the Auto-Inclusion Scheme (AIS), enabling more than 2 million taxpayers to benefit from pre-filled tax returns or the No-Filing Service (NFS) for YA2026. Complementing this, the expanded Direct Notice of Assessment (D-NOA) initiative saw close to 1 million taxpayers receive their tax bills directly from mid-March. Together, these initiatives simplify tax filing and reduce administrative burden, with most taxpayers no longer needing to file a tax return.
- Digital as the Default
Near-total digital adoption has been achieved across payment services, with electronic payments at 99.8%, electronic refunds at 99.7%, and eGIRO applications at 96.6%. This reflects IRAS’ continued collaboration with industry partners and banks to expand eGIRO adoption while supporting taxpayers in the transition to digital payment modes. Efforts will continue to enhance digital services, delivering greater convenience, simplicity, and reliability for taxpayers.
Strengthening Tax Compliance
8 Taxpayers continue to demonstrate strong compliance across all tax types, reinforcing IRAS’ role in shaping a responsible taxpaying community. By making tax filing and payment simple and accessible, and through sustained public outreach, IRAS supports timely and accurate compliance.
9 While tax compliance remains high in Singapore, IRAS continues to take firm action against the small minority of taxpayers who wilfully evade tax. In FY2025/26, we audited and investigated 8,560 cases, recovering approximately $589 million in taxes and penalties.
10 For more details, please refer to the IRAS Annual Report FY2025/26 and tax statistics.
Inland Revenue Authority of Singapore
