Press releases about business, cryptocurrency, fintech and more news in Hong Kong and Asia

Tax collection rises 22.4% to $60.7 billion in last financial year: Iras

SINGAPORE – Tax collection here rose by $11.1 billion, or 22.4 per cent, in the last financial year compared with the previous year.

The Inland Revenue Authority of Singapore (Iras) said on Thursday (Aug 11) that total tax collection amounted to $60.7 billion, representing 73.6 per cent of the Government’s operating revenue and 11.4 per cent of Singapore’s gross domestic product.

Corporate income tax made up the largest share of Iras’ collection at $18.2 billion, or 30 per cent. This was followed by individual income tax at $14.2 billion, of which about 80 per cent came from taxpayers with an annual income of above $150,000.

Goods and services tax made up $12.6 billion and stamp duty totalled $6.8 billion.

Of the $11.1 billion rise in tax collection in the last financial year compared with the year before, stamp duty comprised the largest share at $2.9 billion due to a buoyant property market and an increase in property transactions.

This was followed by GST at $2.3 billion due to higher consumption as Covid-19 restrictions were eased and the economy rebounded.

Stamp duty collection, which is dependent on the volume and value of transactions, may vary from year to year. Over a five-year period, stamp duty collection grew by an average of 8.4 per cent on a compounded annual basis.

Iras said the $2.1 billion increase in corporate income tax and $1.4 billion rise in individual income tax reflected stronger earnings as well as the deferment of tax payments in the last financial year to help businesses cope with the impact of Covid-19.

The tax collected in the previous financial year was $49.6 billion, 7.3 per cent lower than the $53.5 billion for the year before because of the pandemic, said Iras.

Recovery for tax collection was seen across all tax types in the last financial year as Singapore’s economy rebounded following the easing of Covid-19 restrictions.

The arrears rate for income tax, GST and property tax fell to 0.6 per cent at $332.8 million for the last financial year, compared with 0.72 per cent in the year before.

Beyond tax collection, Iras continued to disburse enterprise grants on behalf of the Government to support businesses, jobs and wage growth for Singaporeans.

In the last financial year, Iras disbursed a total of $8.2 billion under various schemes including the Wage Credit Scheme (WCS), Jobs Support Scheme (JSS), Jobs Growth Incentive and Rental Support Scheme.

For example, there was $840 million in WCS payouts to more than 99,000 employers on qualifying wage increases and $3.1 billion in payouts to over 130,000 businesses under the JSS.

Meanwhile, Iras continues to achieve a high taxpayer satisfaction rate of 98 per cent in the 2021 Taxpayer Survey. Its digital services have been enhanced to enable taxpayers to transact conveniently with Iras. This has significantly reduced the number of taxpayers requiring assisted services, said Iras.