In this article, we will answer the most frequent questions regarding the taxability of casino winnings in Singapore. Here is all you need to know if you get lucky!
Do I need to pay tax from winnings in casinos in Singapore?
Casino winnings are subject to income tax.
If the casino is located within Singapore, winnings are taxable regardless of whether or not you were a resident or citizen of Singapore at the time that the gambling took place.
What if I don’t have an NRIC/FIN? Will this affect my ability to claim my casino winnings?
If you do not have a valid NRIC/FIN, the casino can make a record of your passport number and record the details in their database. This is to assist the Inland Revenue Authority of Singapore (IRAS) in identifying you when you submit your tax return. If the casino has made an entry that includes your passport number, you should claim the winnings without an NRIC/FIN.
Can I deduct expenses from my casino winnings? What kind of deductions can I make?
Any losses incurred at the casino (in the same gaming session where any winnings were made) can be deducted from any taxable winnings.
If you were not at the casino to gamble (you were there for dinner or some other reason) and won money, you cannot deduct expenses incurred outside the casino.
What happens if I don’t declare my winnings?
It’s illegal not to declare any income earned in Singapore. You can be fined up to 100% of the tax due and jailed up to three years for certain types of income. You will also most likely have to pay interest and penalties on the unpaid taxes, which can be up to 50% of the due taxes.
What is the tax rate for casino winnings?
The usual income tax rates will apply. For instance, if you earn more than S$20,000 in a year (from various sources), you will be taxed 20% on the excess above S$20,000.
How do I report my winnings?
At the end of the year, you will receive a Notice of Assessment from IRAS. This notice will list all taxable income earned in Singapore and any taxes already remitted. You should declare your winnings on this notice and attach it to your tax return. If you have not been issued a Notice of Assessment, you can report your winnings on your own by filling out the tax form.
What if I don’t pay on time?
If you do not submit payment for your taxes within 12 months from the assessment date, you will be charged interest at 22% per annum. If it is more than 12 months, the penalty is 4% per annum.
What if I disagree with IRAS’ assessment?
If you do not agree with the tax assessment, you must write to IRAS within 30 days of receiving your Notice of Assessment and explain why. If you don’t do so, the review will stand. There is a formal appeals process if you still disagree with the assessment.