Singapore tax collections grow 7.6% on economic growth, buoyant property market

The taxman collected 7.6 per cent more cash in its latest financial year, as the economy grew moderately and the buoyant property market yielded more stamp duty collections.

Total taxes collected was $41.4 billion for the 12 months to March 31, from $38.4 billion in the year before, according to the annual report of the Inland Revenue Authority of Singapore (Iras) released on Wednesday.

The money made up 74.1 per cent of all operating revenue for the Government. Some revenue collection falls to other agencies, such as motor-related payments like Certificates of Entitlement and Electronic Road Pricing.

Iras' collections include corporate taxes, individual income taxes, Goods and Services Tax (GST), stamp duties, property tax and betting taxes.

For the financial year, corporate income tax grew 5.8 per cent to $12.8 billion, owing to improved profits from companies.

Individual income tax collections also grew by 12.2 per cent to $7.7 billion, due to higher salaries and the cessation of one-off personal income tax rebates that had earlier been given for income earned in 2011.

Iras also highlighted the high level of tax compliance in Singapore - essentially, that almost all parties pay their taxes on time.

Tax arrears declined to a record low of 0.79 per cent, among the lowest in the world.

"Our ongoing efforts to promote a high level of voluntary compliance have resulted in more individuals and businesses filing their tax returns and paying taxes on time," said Dr Tan Kim Siew, Commissioner of Inland Revenue.