Decline in fiscal revenue for fiscal year 2020/21 due to COVID-19 pandemic: IRAS
SINGAPORE: The Inland Revenue Authority of Singapore (IRAS) collected S $ 49.6 billion in tax revenue in fiscal year 2020/21, down 7.3% from the previous year.
The drop is due to “muted business activity amid the COVID-19 pandemic in Singapore,” the authority said in a press release Thursday (September 2).
The amount of tax revenue accounts for 73.6 percent of government operating revenue and 10.6 percent of Singapore’s gross domestic product.
Current-year arrears of income tax, goods and services tax (GST) and property tax have also fallen, from S $ 357 million the previous year. to S $ 323.8 million.
Total income taxes – which includes corporate income tax, personal income tax, and withholding tax – accounted for 62% of IRAS collection, he said. stated in the press release.
Income taxes collected in fiscal year 2020/21 totaled S $ 30.5 billion, down 0.9% from the S $ 30.8 billion collected in fiscal year 2019 / 20.
Corporate income tax collection decreased 3.7% from the previous year to S $ 16.1 billion, while personal income tax collection increased by 3% to S $ 12.8 billion.
GST and property tax collection fell 7.3% to S $ 10.3 billion and 34.3% to S $ 3.1 billion respectively. Stamp duty collection also fell to S $ 3.9 billion, down 7.2 percent from the previous year.
Betting taxes – comprising betting taxes, casino taxes and private lottery taxes – totaled S $ 1.7 billion, a drop of 34.3%.
“The decline in corporate tax collections and property taxes is mainly due to the implementation of business support measures such as tax breaks,” said IRAS.
“In addition, GST, stamp duty and betting tax collections were lower due to weaker economic conditions and circuit shutdown measures put in place during the year,” a- he added.
The agency has also planned measures to support businesses and individuals amid the disruption caused by the COVID-19 pandemic.
This included corporate and property tax refunds, extended tax filing deadlines, deferral of income tax payments and installments to facilitate cash flow for affected taxpayers.
“Since last year, IRAS has also intensified its new role as a center of excellence for delivering national grants to businesses – the salary credit program, the employment support program, the cash grants from the government and the incentive for job growth, ”he said.
A total of S $ 28.2 billion in grants were disbursed in fiscal year 2020/21 to support jobs and businesses during the pandemic.