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 a 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 dividend in their annual tax form.


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