What are dividends
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. You need to pay tax on certain dividends, but not on others.
Dividends that you do not pay tax on
- From Singapore resident companies under the one-tier corporate tax system, except co-operatives.
- Foreign dividends received in Singapore by resident individuals, except those received through a partnership in Singapore. Please refer to Tax Exemption for Foreign-Sourced Income for more information.
- Income distribution from Real Estate Investment Trusts (REITs), except those received by individuals through a partnership in Singapore or related to the carrying on of a trade, business, or profession in REITs.
Examples of non-taxable dividends
- resident companies listed on the Singapore Stock Exchange, evidenced by the statement from Central Depository Pte Ltd (CDP)
- share buyback through Special Trading Counters (STC)
- private resident companies
- NTUC FairPrice, except for those received through co-operatives
- approved CPF Investment Scheme agent banks, indicated in the Annual Dividend Statement (ADS)
- unit trusts in Singapore
Dividends that you pay tax on
- From co-operatives: For example, MCCY Registry of Co-operative Societies, NTUC Fairprice Co-operative Ltd, NTUC Healthcare Co-operative Ltd, The Singapore Police Co-operative Society Ltd.
- Foreign-sourced dividends received by individuals through a partnership in Singapore: Some of 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): The income received by individuals through a partnership in Singapore, or if related to the carrying on of a trade, business or profession in REITs.
How to report dividends
Dividends are reported as income in the year they are declared payable to shareholders.
Dividends which you need to pay tax on need to be declared in the Income Tax Return under the 'Other Income' section, unless the company indicates in the dividend voucher that they will furnish the dividend information to IRAS.