Income tax declaration for Unit Trust Fund distribution

[ludwig12]

Dear all,

I am doing my first E-filing in Singapore, it looks fairly straight forward, not a lot of deductions though for EP holders, sigh..

A question I have is on the monthly distribution I get from Unit trust fund, do I need to include them on my E-filing or is it done automatically like my salary/bonus from the employer.

I do get a tax voucher every month from the fund management, it states that "we certify that the income tax deducted as above has been or will be accounted for by us to the Comptroller of Income Tax, Singapore".

And there is also a paragraph below stating that:
"Distribution from unit trusts authorised under section 286 of the Securities and Futures Act(Cap 289)(excluding distributions out of franked dividents) derived directly by an individual on or after 1st January 2004 will be exampled from tax if such distribution are not considered as gains or profits from any trade, business or profession".

I did call IRAS hotline and I was told that "most likely" I don't need to include it in my E-filing but asked me to confirmed with the fund management, I called fund manager and as expected, they asked me to follow the IRAS instruction.

Hence appreciate any experience/guidance on whether I need to indicate them as separate income.

Thanks.

[Wd40]

In Singapore capital gains from equities, fixed income etc are not taxed, unless you are a US citizen or something, then I dont know.

[ludwig12]

Thanks WD40.

[Beeroclock]

And there is also a paragraph below stating that:
"Distribution from unit trusts authorised under section 286 of the Securities and Futures Act(Cap 289)(excluding distributions out of franked dividents) derived directly by an individual on or after 1st January 2004 will be exampled from tax if such distribution are not considered as gains or profits from any trade, business or profession".

should that say exempted instead of exampled ?

[ludwig12]

And there is also a paragraph below stating that:
"Distribution from unit trusts authorised under section 286 of the Securities and Futures Act(Cap 289)(excluding distributions out of franked dividents) derived directly by an individual on or after 1st January 2004 will be exampled from tax if such distribution are not considered as gains or profits from any trade, business or profession".

should that say exempted instead of exampled ?

Yes. My typo. Sorry.

[maneo]

In Singapore capital gains from equities, fixed income etc are not taxed, unless you are a US citizen or something, then I dont know.

Being a US citizen has no bearing on filing SG taxes with IRAS.


However, being a US citizen means you are liable to the IRS for taxes on capital gains made anywhere.
As this is not considered "earned income" it cannot be excluded, even if "foreign sourced."

[Beeroclock]

And there is also a paragraph below stating that:
"Distribution from unit trusts authorised under section 286 of the Securities and Futures Act(Cap 289)(excluding distributions out of franked dividents) derived directly by an individual on or after 1st January 2004 will be exampled from tax if such distribution are not considered as gains or profits from any trade, business or profession".

should that say exempted instead of exampled ?

Yes. My typo. Sorry.

Is that the answer then, if it says it's exempted assuming you hold this account as an individual and not under trade/business/etc ?