Singapore’s tax revenue up 17%, with over S$80 billion collected

SINGAPORE: Singapore collected S$80.3 billion (US$61.4 billion) in tax revenue for the 2023/2024 financial year, a 17 per cent increase from the previous year.
This increase reflects the “strong economic growth and nominal wage growth in Singapore in 2022”, said the Inland Revenue Authority of Singapore (IRAS) on Wednesday (Sep 4).
The total revenue collection represents about 77.6 per cent of the government’s operating revenue and 11.9 per cent of Singapore’s gross domestic product.
“The taxes collected are used to fund essential services for our community, grow our economy, enhance our living environment, as well as support social development programmes to improve the lives of Singaporeans,” said IRAS.
The arrears rate for Goods and Services Tax (GST), income tax and property tax remained low at 0.64 per cent.
IRAS said that while tax compliance remains high, it will take firm action against the “small minority of taxpayers who refuse to comply and pay their fair share of taxes”.
It audited and investigated 9,590 cases in the last financial year, recovering about S$857 million in taxes and penalties.
Corporate income tax formed the largest share of the tax revenue collection at 36.1 per cent. It increased by 25.6 per cent to S$29 billion in FY 2023/24, on the back of strong corporate earnings.
Individual income tax increased by S$2 billion to S$17.5 billion in the last financial year.
GST accounted for the third largest share of revenue collection, rising by S$2.6 billion to S$16.6 billion due to higher consumer spending and the increase in GST rate. 
Property tax contributed 7.4 per cent of the revenue collection, at S$5.9 billion.
Stamp duty collection fell by S$0.1 billion to S$5.8 billion due to lower property transaction volume.
In the last financial year, IRAS processed about S$2.3 billion of disbursements to more than 131,000 businesses.
Some of the major grants processed were for the progressive wage credit scheme, with about S$1.67 billion, the senior employment credit scheme at S$311 million and the Jobs Growth Incentive at S$177 million.