How to compute SG Zero Cgt for Singapore, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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No capital gains tax in Singapore
Singapore does not levy capital gains tax; gains from disposal of shares, real property, bonds/securities, crypto assets, and business assets are not subject to tax in Singapore, provided they are capital in nature. Applies to both residents and non-residents with Singapore assets.Income Tax Act 1947, s.10(1)
Trading income re-characterisation risk
Gains may be re-characterised as income from a trade, which is taxed under s.10(1)(a).Income Tax Act 1947, s.10(1)(a)
Badges of trade
Factors IRAS applies to determine whether activity is trading: frequency of transactions; similarity to the taxpayer's normal business; length of holding period; financing structure (leveraged purchases suggest trading); whether the asset was modified/developed before sale.Income Tax Act 1947, s.10(1)(a)
Shares — treatment
Shares are generally capital. IRAS has confirmed that gains from disposal of shares are not taxable for most investors. High-frequency share trading may be re-classified as trading income.Income Tax Act 1947, s.10(1)
Real property — treatment
Depends on facts. IRAS has a property disposal questionnaire. Generally, gains on investment property held long-term are not taxed. Developers' gains are trading income.Income Tax Act 1947, s.10(1)
Crypto assets — treatment
IRAS guidance (2020) treats crypto as a digital payment token. Gains from long-term investment in crypto: generally not taxed. Crypto trading as a business: taxed.IRAS guidance (2020)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Section 1 — Quick Reference
| Field | Value |
|---|---|
| Country | Singapore |
| Capital gains tax | NONE — Singapore does not levy CGT |
| Applicable to | Residents and non-residents |
| Key risk | Gains re-characterised as trading income |
| Primary legislation | Income Tax Act 1947, s.10(1) |
| Verified by | Pending — Singapore tax adviser sign-off required |
Singapore does not levy capital gains tax. Gains from the disposal of:
…are not subject to tax in Singapore, provided they are capital in nature.
This applies to both residents and non-residents with Singapore assets.
The risk is that gains are re-characterised as income from a trade, which IS taxed under s.10(1)(a).
The IRAS applies the "badges of trade" to determine whether activity is trading:
Frequency of transactions
Similarity to the taxpayer's normal business
Length of holding period
Financing structure (leveraged purchases suggest trading)
Whether the asset was modified/developed before sale
Trading income re-characterisation risk — Gains may be re-characterised as income from a trade, which is taxed under s.10(1)(a). (Income Tax Act 1947, s.10(1)(a))
Badges of trade — Factors IRAS applies to determine whether activity is trading: frequency of transactions; similarity to the taxpayer's normal business; length of holding period; financing structure (leveraged purchases suggest trading); whether the asset was modified/developed before sale. (Income Tax Act 1947, s.10(1)(a))
IRAS treatment by scenario
| Scenario | IRAS treatment |
|---|---|
| Long-term investor selling after years of holding | Capital — not taxed |
| Active trader buying/selling shares frequently | Trading income — taxed |
| Property developer selling units | Trading income — taxed |
| Passive investor selling investment property (long held) | Capital — generally not taxed |
| Frequent property flipping | Trading income — taxed |
Shares: generally capital. IRAS has confirmed that gains from disposal of shares are not taxable for most investors. High-frequency share trading may be re-classified as trading income.
Real property: depends on facts. IRAS has a property disposal questionnaire. Generally, gains on investment property held long-term are not taxed. Developers' gains are trading income.
Crypto assets: IRAS guidance (2020) treats crypto as a digital payment token. Gains from long-term investment in crypto: generally not taxed. Crypto trading as a business: taxed.
Working paper only. The trading vs capital distinction is fact-specific. High-frequency activity warrants specific advice.
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