Yahoo Finance 
Do you need to pay tax on gains from selling property, shares or financial instruments in Singapore?
Capital Gains Tax – from selling property, shares or financial instruments – is not imposed in Singapore.
By Dee Lim
SINGAPORE – While there are many forms of taxes that we need to pay in Singapore, one that is not imposed here is capital gains tax. This type of tax is more commonly seen in countries like the United States and the United Kingdom, and ranges anywhere from 10 per cent to almost 40 per cent globally.
However, this doesn't mean the sale of these assets in Singapore are completely exempt from tax. Here's what you need to know about possible taxation on such gains:
What is capital gains tax
Simply put, capital gains tax is a fee or levy paid to the government when you sell an asset, like stocks or property, and make a profit from it. According to the Inland Revenue Authority of Singapore (IRAS), some gains that are not taxable include:
Gains from the sale of a property in Singapore since it is a capital gain.
Profits or losses from buying and selling shares or other financial instruments, including digital tokens. These are viewed as personal investments.
Any payouts from insurance policies, as these are viewed as capital receipts.
What are the taxable gains from the sale of property?
This is where intent comes into play. While there is no income tax due on the sale of assets, they become taxable when your sole purpose in buying and selling is to make profit.
IRAS looks at the nature and source of your income to assess this. With property, it does this by looking at a number of criteria:
Frequency of transactions – how fast you are buying and selling these properties.
The reason for buying and selling property.
Your financial means to hold on to the property for the long term.
The holding period of each property.
In Singapore, residential properties are subject to Seller's Stamp Duty (SSD) and Additional Buyer's Stamp Duty (ABSD). SSD is applicable when you sell a residential property within a certain holding period, and is calculated based on the property's sale price or market value, whichever is higher.
ABSD is imposed if you are purchasing additional residential properties. The more properties you buy, the higher the ABSD rate you may need to pay. The ABSD rates vary based on factors such as citizenship, residency status, and the number of residential properties owned. For example, a Singapore citizen buying their second or third property will need to pay an ABSD rate of 20 per cent and 30 per cent respectively. For permanent residents, that rate is 30 per cent and 35 per cent respectively, while foreigners will pay 60 per cent on any property bought in Singapore.
How do you report gains from the sale of property?
When you purchase a property, it is part of your conveyancing lawyer's duties to notify IRAS of the sale or transfer within one month by filing a Notice of Transfer. If yours is an HDB property, it will be done by HDB. Pay any SSD if you are selling the property within four years of acquisition.
To declare any taxable gains from the sale of your property, you will need to do so with your income tax return, filed under "Other Income".
You do not need to declare gains that are not taxable in your income tax return.
Follow us on Facebook, Instagram, TikTok and Twitter.
