Singapore's tax revenue up 10.7%, nearly S$89 billion collected

SINGAPORE: Singapore collected S$88.9 billion (US$69.3 billion) in tax revenue for the 2024/2025 financial year, a 10.7 per cent increase from the previous year.  

The increase was driven by “robust” economic growth and higher consumer spending, said the Inland Revenue Authority of Singapore (IRAS) on Thursday (Sep 11). 

The total tax revenue collected represents about 76.9 per cent of the government’s operating revenue and 12.2 per cent of Singapore’s gross domestic product. 

"The taxes collected play a vital role in supporting essential public services, driving economic growth, enhancing our living environment, and enabling social programmes that uplift the lives of Singaporeans," IRAS said. 

The arrears rate for Goods and Services Tax (GST), income tax and property tax remained low at 0.66 per cent.

IRAS said that while tax compliance remains high, it takes firm action against the “small minority of taxpayers who wilfully evade their tax obligations”.

It audited and investigated over 8,600 cases in the last financial year, recovering about S$507 million in taxes and penalties.

BREAKDOWN OF TAX REVENUE

Corporate income tax, fuelled by strong corporate earnings, remained the largest contributor to tax revenue collection at 34.8 per cent. It rose 6.7 per cent to S$30.9 billion in FY2024, from S$29 billion the previous financial year.

GST formed the second-largest share of tax revenue collection at 22.6 per cent, or S$20 billion, up from S$16.6 billion in the last financial year. 

The increase reflected higher consumer spending and the adjustment in the GST rate, IRAS said. The GST rate increased from 8 per cent to 9 per cent from Jan 1, 2024.

Individual income tax accounted for the third-largest share of revenue collection at 21.5 per cent. It rose from S$17.5 billion in FY2023 to S$19.1 billion, driven by higher wages and an increase in the number of taxpayers.

Property tax contributed 7.5 per cent of the revenue collection, or S$6.6 billion, while stamp duty collection formed 7.4 per cent of revenue collection, also S$6.6 billion. 

The increase in stamp duty collection from S$5.8 billion was largely attributed to a rise in property transaction volume, IRAS said. 

In the last financial year, IRAS processed over S$1.3 billion of disbursements to about 127,500 businesses, providing support for businesses, workers and jobs. 

The grants were processed under various schemes, which included about S$924 million under the progressive wage credit scheme, S$277 million under the senior employment credit scheme and S$51 million under the CPF transition offset.