6-9-2023 (SINGAPORE) Singapore has recorded a remarkable increase in tax revenue for the 2022/23 financial year, with a total of S$68.6 billion (US$50.3 billion) collected, marking a 13.1 per cent surge compared to the previous year. This substantial rise is attributed to the country’s post-pandemic economic recovery.
The Inland Revenue Authority of Singapore (IRAS) revealed that the arrears rate for income tax, Goods and Services Tax (GST), and property tax dropped to S$363.1 million, equivalent to 0.59 per cent of the total, down from 0.64 per cent in the preceding financial year.
Tax revenue collection increased across various categories. Corporate income tax contributed significantly to the S$7.9 billion increment in collection, driven by robust corporate earnings. GST saw a rise of S$1.5 billion due to increased consumption and a rebound in international arrivals, while individual income tax surged by S$1.3 billion, primarily attributed to higher personal incomes.
However, stamp duty collection declined by S$800 million, or 12 per cent, mainly due to a lower volume of transactions compared to the previous year.
During the previous financial year, IRAS disbursed a total of S$4.6 billion in grants to over 120,000 enterprises to support local hiring and wage growth for Singaporeans. These grants were distributed under schemes such as the Jobs Growth Incentive (JGI), Progressive Wage Credit Scheme (PWCS), Senior Employment Credit (SEC), and Small Business Recovery Grant (SBRG). Of this amount, S$2.7 billion was allocated to more than 68,000 businesses with local hiring under the JGI, fostering the creation of stable, long-term jobs for Singaporeans.
Corporate income tax constituted the largest share of IRAS’ revenue collection, accounting for S$23.1 billion, or 33.7 per cent. It was followed by individual income tax at S$15.5 billion, or 22.6 per cent, with 83 per cent of this figure coming from taxpayers earning above S$150,000 annually. GST contributed S$14.1 billion, equivalent to 20.5 per cent of the total, while stamp duty represented S$6 billion, or 8.7 per cent. Property tax, betting taxes, and withholding tax accounted for the remaining tax revenue.
IRAS also highlighted that during the 2022/23 financial year, it audited and investigated 9,019 cases, recovering approximately S$499 million in taxes and penalties.
