For Singapore tax residents: All returns on investments with Funding Societies are tax exempt in the hands of the individuals. This is applicable from 2020 and will also be relevant for subsequent years going forward.
Full outcome of the ruling granted to Funding Societies can be found here
Things to note:
Tax exemption is only applicable for interests earned in year 2020 and onward.
All interests earned before year 2020 are still subjected to income tax
Tax exemption is only applicable to individual investors. Institutional and corporate investors are not exempt.
Tax exemption is only applicable to Singapore tax residents. Non-Singapore tax residents are still subjected to withholding tax.
Tax exemption is only applicable to returns earned on the Singapore platform for Funding Societies
For Corporate/ Institutional Investors
Corporate and Institutional investors should refer to IRAS website for tax applicability and related queries.
Please refer to the following steps if you would like to check your interests earned for the year :
Log in via the web browser version https://fundingsocieties.com/
Click on View Statement at the top right
Click on Export Yearly Report Here and then select the relevant year
The total interest earned (i.e. Interest Received + Later Interest Fee Received + Early Interest Payment) would appear in the summary on the first page
In the screenshot below, after deducting $114.56 of service fees, this investor should declare a total of ($3,474.85 + $146.57) - $114.56 = $3,506.85 interest income.
For non-tax residents:
Non-Singapore tax residents are subjected to withholding tax, which is 15% of interest earned, nett service fees.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors concerning the application of tax laws to your particular situation.