Singapore tax revenue rises 10.7% to $88.9 billion amid strong economic growth, consumer spending

SINGAPORE - Tax collection in Singapore rose by 10.7 per cent, driven by robust economic growth and higher consumer spending.

In the financial year from April 2024 to March 2025, the Inland Revenue Authority of Singapore (Iras) collected a total of $88.9 billion. This is 10.7 per cent higher than the $80.3 billion collected from April 2023 to March 2024.

The total tax revenue collected represented about 76.9 per cent of the Government’s operating revenue and 12.2 per cent of Singapore’s gross domestic product, Iras said on Sept 11.

While tax compliance remains high in Singapore, Iras said it continues to take a firm stance against the small minority of taxpayers who wilfully evade their tax obligations.

The tax authority said it audited and investigated over 8,600 cases in the latest financial year, and recovered about $507 million in taxes and penalties. This was down from the 9,590 cases and over $857 million in taxes and penalties it recovered in the previous financial year.

Tax revenue collection increased across tax types, with corporate income tax growing 6.7 per cent to $30.9 billion, up from $29 billion in the previous financial year, due to strong corporate earnings.

It remained the largest contributor to Iras’ revenue collection, at 34.8 per cent. This figure, though, is down from 36.1 per cent a year ago.

Goods and services tax (GST), the second-largest contributor at 22.6 per cent, amounted to $20 billion, up from $16.6 billion in the previous financial year. The rise was attributed to higher consumer spending and an adjustment in the GST rate.

Individual income tax grew to $19.1 billion from $17.5 billion in the previous financial year, led by higher salaries and an increased number of taxpayers.

Property tax collections came to $6.6 billion, up from $5.9 billion in the previous financial year.

Stamp duty collections also rose to $6.6 billion, from $5.8 billion a year ago, thanks to a rise in property transaction volume.

“The taxes collected play a vital role in supporting essential public services, driving economic growth, enhancing our living environment and enabling social programmes that uplift the lives of Singaporeans,” said Iras.

In the latest financial year, the tax authority processed more than $1.3 billion in disbursements to about 127,500 businesses, with these grants processed under various schemes such as the Progressive Wage Credit Scheme and Senior Employment Credit.

Iras said it continues to improve the experience of taxpayers and businesses through key initiatives such as eGiro.

The tax authority expanded its eGiro service from two to seven participating banks for individual taxpayers, and extended it to corporate taxpayers.

It also upgraded its myTax Portal, which features simplified navigation and a centralised notifications hub, among other enhancements.