Tax For Dividends

As Singapore adopts a one-tier corporate tax system, there is no tax on dividend income from Singapore resident company.

If a Singapore company received foreign-sourced dividend income, it will be subjected to tax unless all of the following three conditions are met:

  1. The highest corporate tax rate (headline tax rate) of the foreign jurisdiction from which the income is received is at least 15% at the time the foreign income is received in Singapore;
  2. The foreign income had been subjected to tax in the foreign jurisdiction from which they were received. The rate at which the foreign income was taxed can be different from the headline tax rate; and
  3. The Comptroller is satisfied that the tax exemption would be beneficial to the person resident in Singapore.