Dividends are profits you receive from your shareholding in a company, which may be paid to you in cash or in kind. For example, a company may pay dividends to you in the form of company's shares. 
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Tax Treatment of dividends

Generally, the following dividends are not taxable:

  1. Dividends paid to shareholders by a Singapore resident company under the one-tier corporate tax system (as the tax paid by a company is final), except co-operatives. 

    2. Examples of co-operatives are MCCY Registry of Co-operative Societies, NTUC Fairprice Co-operative Ltd, NTUC Healthcare Co-operative Ltd and The Singapore Police Co-operative Society Ltd.

  2. Foreign dividends received in Singapore by resident individuals, except those received through a partnership in Singapore. 

    3. Note: Foreign-sourced dividends received by individuals through a partnership in Singapore may qualify for tax exemption if certain conditions are met. Please refer to Tax Exemption for Foreign-Sourced Income for more information.

  3. Income distribution from Real Estate Investment Trusts (REITs), except those 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, evidenced by the statement from Central Depository Pte Ltd (CDP)
  • Share buyback through Special Trading Counters (STC)
  • Private resident companies
  • NTUC FairPrice, except for those received through co-operatives
  • Approved CPF Investment Scheme agent banks, indicated in the Annual Dividend Statement (ADS)
  • Unit trusts in Singapore

Reporting dividends

Dividends are reported as income in the year they are declared payable to shareholders.

You need to declare the taxable dividends in the Income Tax Return under the 'Other Income' section, unless the company indicates in the dividend voucher that they will furnish the dividend information to IRAS.

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