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The Corporate Income Tax collection increased by 25.6% from $23.1 billion in FY2022 to $29.0 billion due to strong corporate earnings which contributed the largest share of IRAS’ revenue collection at 36.1%. This was followed by Individual Income Tax at 21.8% ($17.5 billion), an increase of $2 billion on account of higher wages and an increase in the number of taxpayers. Meanwhile, 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.
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).
IRAS continues to work with solution providers and stakeholders to develop and enhance the 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 and One-Stop Payroll (OSP).
InvoiceNow 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.
For 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.
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. The authority audited and investigated 9,590 cases in FY2023/24, recovering about $857 million in taxes and penalties.
Reference/ Citation
https://www.iras.gov.sg/news-events/newsroom/iras-annual-report-fy2023-24
