Back to Answers
SingaporeGST & Corporate TaxUpdated: Sep 13, 2026
Validation Pending: The capabilities described for Singapore are currently under review. Prefiler does not yet offer production-validated automated pre-filing intelligence for this jurisdiction.
Direct Answer
If a business makes exempt supplies (like bank interest or trading in equities), it cannot claim all its input GST unless it passes the De Minimis rule. Otherwise, it must use the standard apportionment formula to claim only the taxable portion of input tax.
The De Minimis Rule
IRAS allows you to claim full input tax if your exempt supplies are:
- Less than or equal to $40,000 per month on average AND
- Less than or equal to 5% of all total supplies.
The Bank Interest Trap
Even a standard tech company earns bank interest (an exempt supply). Usually, this easily passes the De Minimis test. However, if the company holds millions in fixed deposits or trades shares, the exempt income might breach the 5% threshold, requiring complex GST apportionment on overhead expenses like rent and audit fees.