Singapore’s Tax Haul Just Hit a Record S$97.3 Billion — But One Revenue Source Is Doing the Heavy Lifting

SINGAPORE — Singapore’s tax collections are rapidly approaching the S$100 billion mark, with the latest government figures revealing a sharp rise in revenue driven by stronger corporate earnings, consumer spending and economic activity.

The Inland Revenue Authority of Singapore (IRAS) collected S$97.3 billion in tax revenue during financial year 2025/26, an increase of 9.4% from S$88.9 billion the previous year.

That means Singapore collected roughly S$8.4 billion more in taxes in just one financial year.

The Straits Times described the S$97.3 billion figure as a record, while official IRAS figures show the collection represented 74.8% of the Singapore Government’s operating revenue and about 12.3% of the country’s gross domestic product.

But underneath that headline number is an even more revealing story about where Singapore’s tax money is coming from.

Corporate Income Tax Remains Singapore’s Biggest Revenue Engine

Companies were responsible for the single largest portion of IRAS’ collections.

Corporate income tax rose to S$34.4 billion, compared with S$30.9 billion in the previous financial year.

It accounted for 35.4% of all tax revenue collected by IRAS, comfortably making it the largest individual source of revenue.

That increase of about S$3.5 billion is significant because it reflects the stronger earnings and economic activity seen across parts of Singapore’s corporate sector.

Singapore entered the period with substantial economic momentum. Final government figures showed the economy expanded 5.0% in 2025, with outward-oriented industries including manufacturing, wholesale trade and finance benefiting from resilient global trade and the global artificial-intelligence investment boom.

Momentum continued into 2026.

By August, the Ministry of Trade and Industry had raised its full-year 2026 GDP growth forecast to 4.5% to 5.5%, after the economy grew 6.1% year on year during the first half of 2026. MTI cited better-than-expected economic performance and accelerating global spending on AI-related infrastructure as important factors behind the upgrade.

That backdrop helps explain why Singapore’s corporate tax receipts have become such an important part of the latest revenue surge.

GST Collections Jump Above S$21 Billion

Consumers and businesses also contributed substantially through the Goods and Services Tax.

IRAS collected S$21.7 billion in GST, up from S$20 billion previously.

GST therefore contributed 22.3% of total tax revenue, making it Singapore’s second-biggest source of tax collections during the financial year. IRAS linked the increase in part to stronger consumer spending.

The increase is particularly notable because GST revenue now exceeds S$20 billion annually, highlighting just how large consumption taxes have become within Singapore’s overall revenue structure.

The GST rate has stood at 9% since January 2024, following its earlier increase from 7% to 8% in 2023 and then to 9%.

Individual Income Tax Climbs to S$20.9 Billion

Individual taxpayers formed the third major pillar of the government’s tax collections.

Individual income tax generated S$20.9 billion, compared with S$19.1 billion in the previous year.

That represented 21.5% of IRAS’ total tax revenue.

Put together, corporate income tax, GST and individual income tax alone generated roughly S$77 billion, accounting for almost four-fifths of everything IRAS collected.

Property-related taxes also remained significant.

Property tax generated S$6.9 billion, or 7.1% of total collections, while stamp duties brought in S$7.3 billion, equivalent to 7.5%.

Tax Collections Are Rising — But Compliance Is Also Extremely High

The annual report contained another number that may be just as important as the S$97.3 billion headline.

The arrears rate for income tax, GST and property tax remained at just 0.64% of net tax assessed.

In other words, the overwhelming majority of assessed taxes continued to be paid on time. IRAS said the low arrears level reflected both strong taxpayer compliance and enforcement.

That does not mean tax evasion has disappeared.

IRAS said it audited and investigated 8,560 cases during FY2025/26, recovering approximately S$589 million in taxes and penalties.

The agency said it intends to continue taking firm enforcement action against the relatively small number of taxpayers who deliberately evade their obligations.

IRAS Also Paid Out Nearly S$1.2 Billion to Businesses

The tax authority was not simply collecting money.

During the same financial year, IRAS processed close to S$1.2 billion in government payouts for about 126,200 businesses under programmes intended to support companies, workers and employment.

According to figures reported by CNA, those payments included approximately S$791 million through the Progressive Wage Credit Scheme, S$298 million under the Senior Employment Credit, and S$43 million through the CPF Transition Offset.

The Progressive Wage Credit Scheme helps employers offset increases in wages for lower-wage workers, while the Senior Employment Credit provides wage support to employers hiring eligible older Singaporean workers.

The figures illustrate the two sides of Singapore’s fiscal system: the government is collecting substantially more tax revenue while simultaneously using part of its resources to subsidise wages, employment and business adjustment.

Singapore’s Tax System Is Becoming Almost Entirely Digital

Another major transformation is happening behind the numbers.

IRAS reported near-total adoption of electronic tax payments and refunds.

Electronic payments reached 99.8%, electronic refunds stood at 99.7%, while 96.6% of eGIRO applications were being made digitally.

The authority is also progressively expanding the use of InvoiceNow among GST-registered businesses, part of a broader effort to integrate electronic invoicing directly into tax administration.

At the individual taxpayer level, close to one million people received their tax bills directly under the expanded Direct Notice of Assessment system, reducing the need for many taxpayers to submit conventional returns.

That digital transition matters beyond convenience.

Greater automation can reduce administrative work, improve data accuracy and give tax authorities more sophisticated tools for identifying discrepancies and potential non-compliance.

Why the S$97.3 Billion Figure Matters

At first glance, Singapore’s latest tax report is simply another set of government revenue numbers.

But the composition tells a broader economic story.

Corporate income tax is rising alongside strong business activity. GST collections are climbing with consumption. Individual income tax receipts are increasing as employment and incomes feed through the tax system.

And the overall tax haul is now just S$2.7 billion short of the S$100 billion mark.

Whether Singapore crosses that symbolic threshold in the next financial year will depend heavily on corporate profits, employment, consumer spending, asset-market activity and the broader global economy.

The near-term economic backdrop remains relatively strong. Singapore’s government upgraded its 2026 GDP growth forecast in August to 4.5% to 5.5%, supported partly by global demand connected with artificial intelligence, semiconductors and technology investment.

But Singapore remains highly exposed to global trade and geopolitical shocks, meaning a strong tax year does not guarantee that revenue will continue rising at the same pace indefinitely.

For now, however, one thing is clear:

Singapore has moved closer than ever to collecting S$100 billion in taxes in a single financial year — and corporate income tax remains the biggest engine pushing it there.