The Inland Revenue Authority of Singapore (IRAS) has announced a significant achievement in its annual report for the financial year 2024/25, collecting $88.9b in tax revenue. This marks a 10.7% increase from the previous year, driven by robust economic growth and increased consumer spending. The revenue collected represents about 76.9% of the Singapore Government’s Operating Revenue and 12.2% of the nation’s Gross Domestic Product, underscoring its critical role in funding public services and social programmes.
Corporate Income Tax (CIT) was the largest contributor, rising by 6.7% to $30.9b, whilst Goods and Services Tax (GST) followed at $20b, reflecting higher consumer spending and a GST rate adjustment.
Individual Income Tax (IIT) also saw an increase, reaching $19.1b due to higher wages and more taxpayers. Property Tax and Stamp Duty contributed $6.6b each, with Stamp Duty rising from $5.8b the previous year, attributed to increased property transactions.
In addition to tax collection, IRAS processed over $1.3b in grants to support approximately 127,500 businesses. Key schemes included the Progressive Wage Credit Scheme, Senior Employment Credit, and CPF Transition Offset, aimed at providing wage support and helping businesses adjust to cost increases.
IRAS is also advancing digital solutions to streamline tax processes. Initiatives such as the GST InvoiceNow Requirement and the expansion of eGIRO services aim to enhance efficiency and compliance. The upgraded myTax Portal offers a more intuitive experience, reinforcing IRAS’s commitment to digital transformation.
Despite high compliance rates, IRAS remains vigilant against tax evasion, auditing over 8,600 cases and recovering $507m in taxes and penalties in FY2024/25.
