Expatriate tax ebook - Singapore

What taxes?

Capital gains tax
Inheritance, estate and gift taxes
Investment income
Local taxes
Real estate taxes
Social security taxes
Stock options
Wealth taxes

Capital gains tax
There is no Capital Gains Tax in Singapore. However, where the tax authorities regard the gains from disposal of shares as trading receipts arising from carrying on a trade in Singapore, such gains of an income nature are subject to tax in Singapore.

Inheritance, estate & gift taxes
Estate duty has been abolished for deaths occurring on and after 15 February 2008.

There is no gift tax in Singapore.

Investment income
Generally investment income (with certain exceptions) is aggregated with other types of income and subject to tax based on the tax rates set out above.

Local taxes
There are no local taxes imposed on the income of individuals in Singapore.

Real estate tax
There is a tax on the ownership of real property. The tax is based generally on the annual value of the property and the rate of tax is dependent upon the use, occupation of the property, etc.

Social security taxes
The Central Provident Fund (CPF) is a compulsory savings scheme instituted by the Singapore government for employees who are Singapore citizens/permanent residents (PR).

Employers are exempted from making CPF contributions for foreign employees on Singapore employment/professional visit pass or work permit. However, CPF contributions are required once the foreign employee obtains Singapore PR status.

Stock options
Gains on stock options or awards granted whilst exercising employment in Singapore are taxable on the individual. The gains are subject to tax at the marginal rates applicable to the individual.

Wealth tax
There is no wealth Tax in Singapore.

Information about Singapore:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities