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It's incorrect to say "there is no capital gains tax in Singapore"

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PNGMK
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It's incorrect to say "there is no capital gains tax in Singapore"

Post by PNGMK » Mon, 14 Mar 2022 8:18 am

Next time you do your Singapore taxes - take a look at line 7 and 9.

7 is Gains or Profits of an Income Nature Not Includ.....

9 is Income not previously reported.

It's 7 that is the problem. The gahmen here can turn around (as they have just done on NFT sales) and recaterogize your income. This is problem for property speculators (the urban myth is that buying or flipping a home more than two times in a year will cause any capital gain to become income) and day traders.....

Even IRAS is a bit vague on this; "The gains may be taxable if you buy and sell property with a profit-seeking motive or deemed to be trading in properties." (Property here being any property - shares, houses, NFTs).

More from IRAS:

Some criteria used to assess if you are trading in properties are as follows:

Frequency of transactions (buying and selling of properties);
Reasons for buying and selling of property;
Financial means to hold the property for long term; and
Holding period.



Do you see the problem? There is no CGT in Singapore but there is reclassification of capital gains as income....
I not lawyer/teacher/CPA.
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malcontent
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Re: It's incorrect to say "there is no capital gains tax in Singapore"

Post by malcontent » Mon, 14 Mar 2022 12:46 pm

They basically reserve the right to impose CGT depending on the nature of the transaction(s) and how they view your motives. It is vague, but I would say it doesn’t apply to ordinary people doing ordinary things.
Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it - Niels Bohr

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PNGMK
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Re: It's incorrect to say "there is no capital gains tax in Singapore"

Post by PNGMK » Mon, 14 Mar 2022 12:51 pm

malcontent wrote:
Mon, 14 Mar 2022 12:46 pm
They basically reserve the right to impose CGT depending on the nature of the transaction(s) and how they view your motives. It is vague, but I would say it doesn’t apply to ordinary people doing ordinary things.
Yes but where is the line in the sand if it is not written in law? The press is showing more and more reports of people being pulled up on this.

I guess I should check the tax act/s.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

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malcontent
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Re: It's incorrect to say "there is no capital gains tax in Singapore"

Post by malcontent » Mon, 14 Mar 2022 3:39 pm

PNGMK wrote:
Mon, 14 Mar 2022 12:51 pm
malcontent wrote:
Mon, 14 Mar 2022 12:46 pm
They basically reserve the right to impose CGT depending on the nature of the transaction(s) and how they view your motives. It is vague, but I would say it doesn’t apply to ordinary people doing ordinary things.
Yes but where is the line in the sand if it is not written in law? The press is showing more and more reports of people being pulled up on this.

I guess I should check the tax act/s.
I had assumed the news reports were only there to placate the masses… to give the appearance the rich are being made to pay their fair share, along the same ilk as the recent wealth tax hubbub.
Every great and deep difficulty bears in itself its own solution. It forces us to change our thinking in order to find it - Niels Bohr

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