Confusion Over New Singapore Income Tax Rules

Proposed income tax law changes in Singapore have provoked a negative reaction with experts believing the changes will put off prospective real estate buyers.

The Singapore Ministry of Finance have stated that there will be no tax on the gains from an individual who sells a property after 1 January 2010 if they have not sold any other properties in the previous four years. Experts are calling for clarification as the wording leads some to believe that individuals who sell more than one property over a four year period look set to pay more tax.

The MoF have denied such claims stating, “The proposed change is not an anti-speculation measure. It does not mean that individuals will automatically be subject to income tax.”

However clear statements over the new tax regime have not yet been forthcoming and many believe that real estate investors in Singapore may well be put off from buying properties and real estate until there is a firm grasp of the implications of the new rules.

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