Singapore's Ministry of Finance (MOF) has proposed a potential change in the income tax laws related to property. If the law is passed in Parliament, it will impact disposal of properties from 1 Jan 2010 onwards, if the seller had sold another property 4 years prior.
To sum up the gist of the matter, it provides clarity and certainty as to what may or may not be taxable under the current income tax regime, when said income includes income derived from the sale of properties. Anyone who sells only one property in a 4-year period will not be taxed on the profit;
if a second one is sold, the profit may then be taxable, based on the facts and circumstances of the second sale, which is similar to the current tax regime. Even under the current regime, the taxman could already come after such capital gains if the assessed individual is deemed to be a property trader that derives income from the purchase and sale of multiple properties.
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