Singapore property news: income tax changes clarified

Country:  Singapore

29 September 2009

Singapore’s government has acted to clarify planned alterations to income tax legislation in the country which some experts’ project will have an adverse impact on the Singapore property market.

The tax change is scheduled to take effect in January 2009 and designed to prevent property speculation in the future and raise more taxes on those Singapore homes bought and sold within four years of ownership.

In a statement, the Ministry of Finance confirmed that there will be zero tax gains from an individual who sells a property in Singapore after 1 January as long as they have not sold any other property in the previous four years.

Before the Ministry of Finance’s clarification, it was feared that that investors might be deterred from buying homes in Singapore due to confusion on the new tax ruling.

In 1996, the government imposed tax on the gains of individuals made from selling properties within three years of purchase. This continued until 2001 when it was scrapped.

See Also:   Marc Da-Silva, Singapore, Tax