Dividends paid by a Singapore private resident company are tax-exempt

Dividends are the share of a company’s available profits that shareholders may receive based on their shareholdings in a company. This can be paid out either in cash or in kind, for example in the form of company’s shares.

In Singapore, shareholders of private resident companies will not be taxed for dividends received on or after 1 Jan 2008. This is due to the one-tier corporate tax system whereby tax paid on profits by companies is the final tax.

Therefore, shareholders do not need to declare this tax-exempt dividends  in their annual tax form.

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