Episode Details

Does Singapore Have a Capital Gains Tax?

No. Singapore generally does not impose a separate capital gains tax. Genuine capital gains are typically not taxable, including gains from the disposal of foreign investments.

However, the distinction between capital gains and trading income is important. Gains from foreign shares may be treated as taxable income where the circumstances indicate that the transactions are part of a trade or business, such as a pattern of frequent trading or an intention to trade for profit.

Key takeaway: Singapore generally does not tax genuine capital gains, but gains that are recharacterised as trading income may be subject to income tax.