Declaring Dividends Received In Your Personal Income Tax
I received a call few days ago from a client asking this question.
Just hope to share on this platform for the benefit of more business owners…
What is Taxable and Non-Taxable Dividends ?
Taxable Dividends
The following dividends are subject to income tax:
* Dividends paid by co-operatives;
* Foreign-sourced dividends derived by individuals through a partnership in Singapore.
* Income distribution from Real Estate Investment Trusts (REITs) derived by individuals through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.
Non Taxable Dividends
Generally, the following dividends are not taxable:
* Dividends paid on or after 1 Jan 2008 by a Singapore resident company under the one-tier corporate tax system except co-operatives;
* Foreign dividends received in Singapore on or after 1 Jan 2004 by resident individuals. If an individual resident in Singapore receives foreign-sourced dividends through a partnership in Singapore, these dividends may be exempt from Singapore tax if certain conditions are met.
* Income distribution from Real Estate Investment Trusts (REITs), except distributions derived by individuals through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.
Examples of Non-Taxable Dividends
* Dividends from resident companies listed on the Singapore Stock Exchange, as shown in the statement from Central Depository Pte Ltd (CDP)
* Dividends from share buyback through Special Trading Counters (STC)
* Dividends from private resident companies
* NTUC Fair-Price dividends (except for dividends received through co-operatives)
* Singapore dividends from approved CPF investment Scheme agent banks, as shown in the Annual Dividend Statement (ADS)
* Singapore dividends from unit trusts
So, how are you to declare your Taxable Dividends in coming Personal Income Tax reporting season ?
Your Tax Return
You do not need to declare taxable dividends in your tax form if the organisation(s) indicates on the dividend voucher that they will provide the dividend information to IRAS.
Otherwise, you need to declare all taxable dividends in your income tax return under ‘Other Income’ .
Hope this helps.
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