Gains from Sale of Property, Shares and Financial Instruments

Gains from the sale of a property, shares and financial instruments in Singapore are generally not taxable. However, gains from "trading in properties" may be taxable.

Gains from Sale of Property

Generally, the gains derived from the sale of a property in Singapore are not taxable as it is a capital gain.

Taxable Gains from Sale of Property

The gains may be taxable if the individual buys and sells property with a profit-seeking motive. When a person is deemed to be trading in properties, the gains from the sale of property in Singapore is considered taxable income. Whether a person is deemed to be carrying on a trade will depend on individual circumstances.

Some criteria used to assess if you are trading in properties 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; and
  • Holding period

Reporting Taxable Gains

You must declare taxable gains from the sale of property under 'Other income' in your tax form. If you are unsure whether your gains from sale of property, shares or financial instruments are taxable, emailfax or write to us.

Gains from Sale of Shares and Financial Instruments

Generally, profits or losses derived from the buying and selling of shares or other financial instruments are viewed as personal investments. Payouts from insurance policies are also not taxable as they are capital receipts.

These profits are capital gains and are not taxable. You need not report such gains in your tax return.

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