What to declare for tax returns
As an administrator, executor or trustee, you must notify all beneficiaries to declare their share of estate/ trust income in their Individual Income Tax Returns.
On this page:
What you need to know
Beneficiaries are people legally entitled to the income or capital from an estate/ trust through a will, trust deed or Law of Intestacy (when a person dies without a will).
What beneficiaries must declare
Resident beneficiaries
Singapore tax residents must declare their share of estate/ trust income in their Individual Income Tax Returns under "Others" as a charge or estate income.
Resident beneficiaries must declare:
- Estate income distributions by virtue of the will of the deceased or the Law of Intestacy; and
- Trust income entitlements by virtue of the trust deed, will of the deceased, or the Law of Intestacy.
They pay taxes for their share of entitlement of income at their personal income tax rates and receive the same exemptions and concessions as if they derived or received the income directly.
They do not need to declare:
- Income that would be tax-exempt if they had received the income directly, such as interest from approved Singapore bank deposits; and
- Capital receipts, such as sales proceeds from property or shares and insurance money.
Non-resident beneficiaries
No action is required by non-resident beneficiaries. The administrator, executor or trustee must:
- Pay taxes on their non-resident beneficiary's share of entitlement or distribution of income at the estate/ trustee level.
- Pay the taxes within 1 month from the date of the Notice of Assessment.
- Retain sufficient funds to pay the taxes when due as the Notice of Assessment will be issued in subsequent years (i.e. in the years following the year in which the estate/ trust income is derived).