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Anonymous
If I run my own biz and declare dividends, do I have to pay tax?
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Nigel Tan
02 Nov 2021
Executive Senior Financial Planner at Great Eastern Life
I believe its taxed on a corporate basis through the company, but not on a personal level.
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No, dividend income is not subject to personal income tax.
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Of course, any dividend income from your company would come from post-tax profits, so you would still be paying the corporate tax rate. Corporate taxes in Singapore are low at 17%. There are also certain partial tax exemptions available for your first $200,000 of corporate income. Also, there are tax loss carry forwards, which means losses in previous years can be used to offset taxable income in the future.
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These tax benefits are designed to promote capital investments, e.g. entrepreneurs starting and growing their own businesses.
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If you're looking to declare dividends from your own company, here's a guide on how to do so: https://www.providecover.com/best-guide-to-divi...