Estate under administration or held in trust
Note: Read this page if you are the Legal Personal Representative (administrator or executor) of an estate and need to understand your tax obligations. The tax amount and who pays it depends on whether you distribute income to Singapore resident beneficiaries within the relevant period.
On this page:
Who pays estate income tax
Who pays estate income tax depends on whether you distribute the estate income or apply it to the benefit of the Singapore resident beneficiaries.
If you distribute income to Singapore resident beneficiaries within the deadline:
- Beneficiaries pay tax at personal income tax rates on their share of estate income.
- You must meet distribution deadline conditions (see below).
If you do not distribute income within distribution deadline or distribute to non-residents:
- You (the Legal Personal Representative) pay 17% tax on the estate income.
Distribution deadlines
| Income earned in | Distribution deadline | Example |
| Year of Assessment 2023 and before | Before 31 March in the year following the Year of Assessment | Income earned in 2022 must be distributed or applied to the benefit of the resident beneficiaries before 31 March 2024 |
| Year of Assessment 2024 and after | Within the same calendar year | Income earned in 2023 must be distributed or applied to the benefit of the resident beneficiaries by 31 Dec 2023 |
How to calculate estate income tax
Step 1: Calculate chargeable income
- Start with total estate income for the year.
- Subtract any amount you distributed to Singapore resident beneficiaries or applied to their benefit within the deadline.
- The remaining amount is chargeable income.
Step 2: Apply the tax rate
- Multiply chargeable income by 17%.
- This is the tax you must pay as Legal Personal Representative.
Estate income in 2022 | $5,000 |
|---|---|
Less distribution in 2023 | $4,000* |
Chargeable income | $1,000 |
Tax at estate level for Year of Assessment 2023 : $1,000 at 17% | $170.00 |
The beneficiary will be assessed on the income distributed to him/her ($4,000*) at his/her personal tax rate in the Year of Assessment 2024 since he/she received it in 2023.
Important: Income taxed at the estate level will not be taxed again on the beneficiaries when you distribute it to beneficiaries in later years.
Estate income in 2026 | $5,000 |
|---|---|
Less distribution in 2026 | $4,000* |
Chargeable income | $1,000 |
Tax at estate level for Year of Assessment 2027: $1,000 at 17% | $170.00 |
*The beneficiary will be assessed on the income distributed to him/ her ($4,000*) at his/ her personal tax rate in the Year of Assessment 2027 since he/ she received it in 2026.
Important: Income taxed at the estate level will not be taxed again on the beneficiaries when you distribute it to beneficiaries in later years.