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Tax on Legal Personal Representative (LPR)
The statutory income of a LPR (administrator/executor) is subject to income tax at the following flat rate:
| Year of Assessment (YA) | Tax Rate |
|---|---|
| From YA 2010 | 17% |
Tax on beneficiaries if income is distributed
Tax on the estate income can be paid by Singapore resident beneficiaries at their personal tax rates instead of the tax rate of a LPR if the distribution conditions are met.
Conditions applicable to Years of Assessment 2023 and before
For income earned in a basis period and brought to tax in the hands of the LPR in the relevant Year of Assessment applicable to the basis period, the income has to be received by, distributed to or applied to the benefit of the Singapore resident beneficiaries before 31 Mar in the year following the Year of Assessment.
Example: Income Earned in 2022 and subject to tax in Year of Assessment 2023 must be distributed before 31 Mar 2024
Estate income in 2022 | $5,000 |
|---|---|
Less distribution in 2023 | $4,000* |
Chargeable income | $1,000 |
Tax at estate level : $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 YA 2024 since he/she received it in 2023.
If the income is taxed at the estate level, it will not be taxed at the beneficiary level when it is distributed in later years.
Conditions applicable from Year of Assessment 2024
The income has to be received by, distributed to or applied to the benefit of the Singapore resident beneficiaries within the same calendar year in which it is derived.
Example: Income Earned in 2023 Must Be Distributed By 31 Dec 2023
Estate income in 2023 | $5,000 |
|---|---|
Less distribution in 2023 | $4,000* |
Chargeable income | $1,000 |
Tax at estate level for Year of Assessment 2024 : $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 YA 2024 since he/she received it in 2023.
If the income is taxed at the estate level, it will not be taxed at the beneficiary level when it is distributed in later years.