Tax-Free Savings Account

Tax-Free Savings Account

In Singapore, interest earned from savings account is tax-free. According to the Inland Revenue Authority of Singapore (IRAS), interest received from deposits with approved banks or licensed finance companies in Singapore on or after 1 Jan 2005 is not taxable.

You do not need to declare interest that is not taxable.Thus, interest earned from savings and fixed deposits from approved banks and financial institutions in Singapore is free of tax.

To check if a bank is an approved bank for the purpose of getting tax-free earned interests:

1. Visit MAS website
2. Click on 'Commercial Banks' and 'Merchant Banks'.
All banks listed on these two pages are approved banks.

To view the list of licensed finance companies to get your tax-free interests:

1. Visit MAS website
2. Click on 'Finance Companies'.
All companies listed on this page are licensed finance companies.

When is interest earned from savings accounts not tax-free?
Interest from the following sources is not tax-free

· Deposits with non-approved banks
· Deposits with finance companies not licensed in Singapore
· Pawnshops
· Loans to companies, persons etc.

How to report if interest earned is not tax-free?
You need to declare the full amount of your taxable interest under 'other income' in your tax form.

As interest earned from savings account is quite little, you should put money in approved banks and financial institutions that offer tax-free interests to save you from paying unnecessary tax.