Tax for SGS, MAS Bills and MAS FRN

Investors in Singapore Government Securities (SGS), MAS Bills and MAS Floating Rate Notes (FRN) enjoy competitive tax rates. Under the Qualifying Debt Securities (QDS) scheme, interest income on SGS, MAS Bills and MAS FRN is tax-exempt for individuals, while institutions qualify for tax incentives for SGS, MAS Bills and MAS FRN issued up till 31 December 2023.

Capital Gains

There is no capital gains tax in Singapore. You do not need to pay tax on the profits you gained from trading in SGS, MAS Bills and MAS FRN.

Interest and Other Qualifying Income

Individual residents and non-residents do not need to pay tax on interest and other qualifying income gained from SGS and MAS Bills, except where such income is derived through a partnership in Singapore or is derived from the carrying on of a trade, business or profession.

Note: 'Other qualifying income' means discount, prepayment fee, redemption premium, break cost and such other income as may be prescribed by the income tax regulations.

Corporations and financial institutions are taxed as follows:

Institution type Tax rate
Resident
10% concessionary rate for SGS issued from 28 February 1998 to 31 December 2023.
10% concessionary rate for MAS Bills and MAS FRN issued from 25 April 2011 to 31 December 2023.
Non-resident Exempted from withholding tax for SGS issued from 28 February 1998 to 31 December 2023.
Exempted from withholding tax for MAS Bills and MAS FRN issued from 25 April 2011 to 31 December 2023.

Notes:

  • Financial Sector Incentive – Standard Tier companies are taxed at a concessionary rate of 12% or 13.5% (as the case may be).
  • A non-resident institution is one:
    • Without a permanent establishment in Singapore.
    • With permanent establishment in Singapore, if funds used to buy SGS and MAS Bills are not from Singapore operations.
  • Conditions for QDS are set out in the Income Tax Act and Income Tax (Qualifying Debt Securities) Regulations .

Trading Income

Income earned by primary dealers from trading SGS, MAS Bills and MAS FRN is exempted from tax.