Capital Gain Taxes in Singapore

In Singapore, gains you earn by selling a property, a share, or a financial instrument is not taxable in most cases. If you derived your gains by trading in a property, then the gains might be taxable.

Profits You’ve Earned by Selling Shares/Financial Instruments

When you derive a profit or loss by purchasing and/or selling of financial instruments/shares it will be considered as your personal investment. A payout which is derived out of an insurance policy will also be considered as non-taxable since it is a capital receipt. These type of profits you earn are termed as capital gains which come under the non-taxable category. There is no need for you to report such profits in your income tax return.

Profits You’ve Gained by Selling a Property

When you purchase or sell a property with an intention to make a profit, the gains you derive out of that property might be taxable. In case you’re someone who is considered to have been involved in property trading, the gains you’ve derived by selling a property (within Singapore) will fall under the “taxable income” category.

A few conditions will be used in order to check if you’re involved in property trading”

  • Occurrence of transactions (purchasing/selling of a property).
  • Causes for acquisition/sale of a property.
  • Holding period.
  • Be financially sound to hold the property for a long period of time.

Note: In case the gains you’ve derived by selling your property fall under the “taxable” category, you need to declare this income under the section “Other Income” in your tax return. In case you’re unable to decide whether the gains you’ve derived by selling your property/shares/financial instruments are taxable or not, you can get in touch with IRAS via an email.

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