• $80.3 billion tax revenue collected to support Singapore’s economic and social growth
• $2.3 billion enterprise grants processed to provide support for businesses and workers
• Growing number of tax-related digital solutions to help businesses

The Inland Revenue Authority of Singapore (IRAS) collected a total of $80.3 billion in tax revenue for Financial Year (FY) 2023/24, 17% higher than in FY2022/23. This increase reflects the strong economic growth and nominal wage growth in Singapore in 2022.

The total revenue collection represents about 77.6% of the Singapore Government’s Operating Revenue and 11.9% of Singapore’s Gross Domestic Product. The taxes collected are used to fund essential services for our community, grow our economy, enhance our living environment, as well as support social development programmes to improve the lives of Singaporeans.

Beyond tax collection, IRAS processed close to $2.3 billion in pay-outs that benefit many businesses and workers.

The arrears rate for Income Tax, Goods and Services Tax and Property Tax has remained low at 0.64%.

Breakdown of Tax Revenue Collection

Corporate Income Tax (CIT) increased by 25.6% from $23.1 billion in FY2022 to $29.0 billion due to strong corporate earnings. It contributed the largest share of IRAS’ revenue collection at 36.1%.

This was followed by Individual Income Tax (IIT) at 21.8% ($17.5 billion), an increase of $2 billion on account of higher wages and an increase in the number of taxpayers.

The Goods & Services Tax (GST) accounted for the third largest share of IRAS’ revenue collection at 20.7% ($16.6 billion), rising by $2.6 billion due to higher consumer spending and the increase in the GST rate.

Property Tax contributed 7.4% ($5.9 billion) of the revenue collection, while Stamp Duty collection - which fell by $0.1 billion due to lower property transaction volume - accounted for 7.2% ($5.8 billion) of the revenue collection.

Close to $2.3 Billion in Grants Processed to Support Businesses and Workers

In FY2023/24, IRAS processed about $2.3 billion of disbursements to more than 131,000 businesses, supporting businesses, workers and jobs. The grants processed come under various schemes – the major ones being the Progressive Wage Credit Scheme (PWCS), Senior Employment Credit (SEC) and Jobs Growth Incentive (JGI):

Partnering Stakeholders to Co-create Digital Solutions for Seamless Transactions

IRAS continues to work with solution providers and stakeholders to develop and enhance our Application Programming Interfaces (APIs), so that more businesses can seamlessly perform their tax transactions directly from their accounting and payroll software. This saves time and effort for businesses. The latest initiatives include:

-            InvoiceNow: It will help businesses reap the benefits of e-invoicing, as well as ease their GST compliance. IRAS will be requiring GST-registered businesses to adopt InvoiceNow which will seamlessly transmit invoice data to IRAS for tax administration. This will be done in phases, starting with newly incorporated companies that voluntarily register for GST from November 2025 and all new voluntary GST registrants from April 2026.

-            One-Stop Payroll (OSP): IRAS has partnered the Central Provident Fund Board, the Ministry of Manpower and GovTech on the OSP initiative. With OSP, businesses can file employers’ employment and wage-related information to IRAS and these agencies easily, all through the same payroll software. These expanded functionalities and benefits are built on IRAS’ existing Submission of Employment Income API.

To-date over 120 software providers and resellers have partnered with IRAS on 46 unique software products that will help businesses file and pay their taxes easily.

Strengthening Tax Compliance Through Automation, Engagement and Education

We continue to achieve good on-time tax filing and payment through engaging the public and providing a seamless taxpaying experience.

While tax compliance remains high in Singapore, IRAS remains vigilant to take firm action act against the small minority of taxpayers who refuse to comply and pay their fair share of taxes. We audited and investigated 9,590 cases in FY2023/24, recovering about $857 million in taxes and penalties.

For more details, please refer to the IRAS Annual Report FY2023/24 and tax statistics.

Inland Revenue Authority of Singapore