Gains from sale of property
Generally, the gains derived from the sale of a property in Singapore is not taxable as it is a capital gain.
When is it taxable
When a person is deemed to be trading in properties, the gains from the sale of property in Singapore is income and it is taxable. As to whether a person is deemed to be carrying on a trade, it depends on the circumstances of that individual.
To determine if a person is trading in properties, IRAS applies a set of guidelines known as the "badges of trade". There are criteria under the badges of trade and IRAS considers all facts of each case to determine whether the gains are taxable.
Examples of the criteria are as follows:
- Frequency of transactions (buying and selling of properties)
- Reasons for acquiring and selling of property
- Financial means to hold the property for long term
- Holding period
How to report
You need to declare taxable gains from sale of property under 'Other income' in your tax form.
If you sold a property and require clarification on the tax treatment, you can email us or fax to us on 6351 3636.
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Gains from sale of shares & financial instruments
Generally, profits or losses derived from the buying and selling of shares or other financial instruments on your own account are viewed as personal investments.
Capital gains are not subject to tax. If you buy and sell shares or other financial instruments at a profit, the profit is not subject to tax.
When is it taxable
To determine whether an individual is trading, factors such as the frequency and volume of transactions, the interval between the purchase and sale, and the manner of financing the purchase of shares, will be taken into consideration.
The three circumstances factors above alone do not determine whether the gains are taxable.