Tax on Legal Personal Representative (LPR)
The statutory income of a LPR (administrator/executor) is subject to income tax at the following flat rate:
|Year of Assessment (YA)||Tax Rate|
|From YA 2010||17%|
Tax on beneficiaries if income is distributed
Tax on the estate income can be paid by Singapore resident beneficiaries at their personal tax rates instead of the tax rate of a legal personal representative if the distribution conditions are met.
The income has to be distributed before 31 Mar in the year following the year of assessment.
Example: Income Earned in 2022 Must Be Distributed Before 31 Mar 2024
Estate income in 2022
Less distribution in 2023
Tax at estate level : $1,000 at 17%
The beneficiary will be assessed on the income distributed to him/her ($4,000*) at his/her personal tax rate in the YA 2024 since he/she received it in 2023.
If income is taxed at the estate level, it will not be taxed at the beneficiary level when it is distributed in later years.