Singapore tax revenue up 9.4%, hits record $97b

Singapore collected $97.3 billion in tax revenue in the financial year of 2025/2026, up 9.4 per cent from the previous year amid stronger economic activity and consumer spending, said the Inland Revenue Authority of Singapore (IRAS) on Friday (Sep 4). 

In its annual report, IRAS said the amount accounted for 74.8 per cent of the Government's operating revenue and 12.3 per cent of the country's gross domestic product. 

According to IRAS data dating back to 2002, this was the highest tax collection on record, reported The Straits Times. 

Corporate income tax remained the largest source of tax revenue at $34.4 billion, up from $30.9 billion the previous year, accounting for 35.4 per cent of total tax collection.

Goods and Services Tax (GST) was the second-largest contributor, up to $21.7 billion from $20 billion, accounting for 22.3 per cent of total tax collection amid higher consumer spending, IRAS said.

Individual income tax contributed $20.9 billion, or 21.5 per cent of total tax collection, up from $19.1 billion in FY2024.

Additionally, property tax and stamp duty accounted for 7.1 per cent ($6.9 billion) and 7.5 per cent ($7.3 billion), respectively, of IRAS' total revenue collection.

The authority said tax compliance remained high, with the arrears rate for income tax, GST and property tax standing at 0.64 per cent of net tax assessed.

Despite the high level of tax compliance, IRAS said it continues to take "firm action" against the small minority of taxpayers who evade tax. 

In FY2025/26, it audited and investigated 8,560 cases, recovering about $589 million in taxes and penalties.

Beyond tax collection, it said it processed close to $1.2 billion in payouts to about 126,200 businesses through support schemes, including the Progressive Wage Credit Scheme, Senior Employment Credit and CPF Transition Offset.

As part of its efforts to digitalise tax services, the tax authority will also progressively require all GST-registered businesses to onboard InvoiceNow and submit invoice data directly to the tax authority between April 2028 and April 2031.

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