Any payout or profit arising from your investment in Singapore are subject to income tax, unless your investment are specifically exempted under the Income Tax Act.
You need to declare your investment income in your tax return, unless your investment is specifically exempted under the Income Tax Act.
Investing in properties
Rental income from renting out your property is taxable. Expenses may be claimed against rental income.
Under the Income Tax Act, 'any other profits arising from property' are also taxable. These include net annual value (NAV) of property used by or on behalf of the owner for residential purpose and not for the purpose of gains or profits.
If you own and occupy more than 1 property for residential purpose or have properties occupied rent-free by friends or relatives, the NAV of the properties will be subject to income tax. NAV is the annual value shown on your property tax bill less allowable expenses.
NAV = Annual Value (AV) - Allowable expenses
With effect from Year of Assessment 2010, NAV is exempt from tax.
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Investing in shares/unit trusts
Dividends are the regular payouts from your shares. They are taxable unless specifically exempted under the Income Tax Act.
Income distribution from unit trusts and real estate investment trusts (REIT) which are derived on or after 1 Jan 2004 are exempted under the Income Tax Act.
Find out more about what dividends are taxable, what are not.
Investing in fixed deposits
The interest received from fixed deposits is taxable, unless they are specifically exempted under the Income Tax Act.
Find out more about what interests are taxable, what are not.