If you are asked to pay a capital gains tax, income tax or Goods & Services Tax on your investment profits, beware. Do not pay!

For investment scams, you will receive messages (phone calls, social networking sites or emails) from fraudsters claiming to be from banks, financial institutions or cryptocurrency companies. You will be instructed to pay capital gains tax, income tax or Goods & Services Tax on your investment profit or dividends via bank transfers or credit card payment. You will also be threatened with account closure, late fees or penalties if you do not make payment.

What’s legit from IRAS?

  • There is no capital gains tax on profits earned from the sale of investments and shares in Singapore. Gains from the sale of shares, financial instruments and property held as personal investments in Singapore are generally not taxable. The profits and losses from shares or other financial instruments (including digital tokens) are also generally not taxable as they are viewed as personal investments. Learn more about gains from sale of shares, financial instruments and property.

Do your own checks on unfamiliar financial institutions using resources such as the Financial Register or Representatives, and Investor Alert List, on the MAS website (www.mas.gov.sg).

  • IRAS will not ask taxpayers to pay taxes through third parties or intermediaries’ bank account. Scammers from online investment and cryptocurrency investment platforms will usually instruct you to use digital payment links to pay up taxes before you can withdraw your investment. Do not be deceived and be aware of payment modes for different tax types to IRAS.

Screenshots of investment scams: 

Image of email on GST payment for bitcoin transaction
Screenshot of scam invoice from singapore federal tax authority for tax payment on cryptocurrency
Notice of Income Tax Payment Screenshot
Image showing scam letter seeking tax clearance, investors fee

scam letter

Screenshot image showing scam letter seeking victims to make tax payment on their investment profit