Individuals who derive income from investments in property, shares, unit trusts, fixed deposits, etc. in Singapore need to pay income tax, unless the investment is exempted under the Income Tax Act.

Reporting investment income from properties

Rental income

Rental income is subject to income tax. Rental income refers to the full amount of rent and related
payments that you receive when you rent out your property. This includes rent of the premises,
maintenance of the property, furniture and fittings. You will be taxed on your net rental income (gross

rent less allowable expenses).

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.

However, the gains may be taxable if you buy and sell property with a profit seeking motive.

For details, please refer to:

Reporting investment income from shares/unit trusts

Dividends are profits received from your share of ownership in a company, which may be paid to you in cash or in kind. For example, a company may pay its shareholders dividends in the form of the company's shares.

Under the one-tier corporate tax system, the tax paid by a Singapore company is final. Therefore, the shareholders would not be taxed on dividends paid by a Singapore resident company. However, dividends received from shares in co-operatives are taxable.

Generally, income distribution from Real Estate Investment Trusts (REITs) and unit trusts are exempt from income tax. However, this excludes distribution derived by individuals:

  1. Through a partnership in Singapore; or
  2. From the carrying on of a trade, business or profession.

Dividends are taxed in the year in which they are declared payable.

For details, please refer to  what dividends are taxable, what are not.

Reporting investment income from fixed deposits

The interest received from deposits with approved banks or licensed finance companies in Singapore is not taxable.

Interest from debt securities (e.g. bonds) is also not taxable unless it is derived:

  1. Through a partnership in Singapore; or 
  2. From the carrying on of a trade in debt securities.

For details, please refer to  what interests are taxable, what are not.