Dividends are profits you receive from your share of ownership in a company, which may be paid to you in cash or in kind. For example, a company may pay dividends to you in the form of company's shares.
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Generally, the following dividends are not taxable:
- Dividends paid to shareholders by a Singapore resident company (excludes co-operatives) under the one-tier corporate tax system (as the tax paid by a company is final);
- Foreign dividends received in Singapore 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;
- 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
The following dividends are subject to income tax:
- Dividends paid by co-operatives;
- 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);
- 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
Dividends are treated as income in the year when they are declared payable to the shareholders.
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 must declare all taxable dividends in your Income Tax Return under 'Other Income'.