Is my interest income taxable in Singapore?

Hi there! 👋

Chloe here, if you've clicked into here you're perhaps scratching your head wondering.... is the interest income i earn taxable? 🤔

Taking the module of taxation in university here taught me about the tax exempt income in Singapore that may be an interesting topic to you too! :)

Heres what i learnt, but do do your own due diligence!🙇🤓

Interest income derived by any individual from deposits with an approved bank or a finance company licensed under the Finance Companies Act in Singapore, is exempt from tax.      

However, if the interest income is derived through a partnership in Singapore or is derived from the carrying on of a trade, business or profession, such income is taxable.

In more relatable context, check this example out.

In this example,

• The net taxable amount before rental income ($ 52,500)

• With the interest income consideration, only the loan interest from private company is taxable. Hence, the net taxable income becomes

( $ 52,500 + $ 6000) = $ 58,500.

In this case, the loan interest from the private company is not exempted from tax, the others with HSBC, DBC, OCBC , SGS Bonds are tax exempt! YAY! Interest earned from this licensed tax bodies won't bite us at the back and increase our tax hehe.

Okie! That's it for this bite size learning on taxation in Singapore that i hope will be useful to ya!

Cheers! Feel free to ping me on telegram @chloeng01 if you would like to comment on any bits :)

28 Jan 2023

Resource reference:

1. My school notes !!
2. https://home.kpmg/xx/en/home/insights/2021/08/singapore-taxation-of-international-executives.html#:~:text=Interest income derived by any,Singapore%2C is exempt from tax.