YOU WANT to rent or buy Singapore homes?
CLICK SEARCH. Then email reference number & details to judy@asiahomes.com or Tel: +65 9668 6468, 6254
3326, 6254 2728, 9668 6469 Fax: +65 6256 0501, 64545 843 for viewing or updates.
Tips for Foreign Investors
Capital Gains & Property Tax
Any
gain you make on selling the property will potentially be liable
to Capital Gains Tax (CGT). If the property is held for at
least three complete tax years will be exempt from CGT. If sold
within 3 years, there is a pro-rated CGT.
All incidental costs of both acquisition and disposal are
allowable for CGT purposes, provided they are incurred wholly and
exclusively for the purposes of the transaction. Examples of cost
are:
estate agent fees, transfer/conveyancing charges (including stamp
duty), advertising to find a
buyer/seller, surveyors, valuers and accountants fees.
This includes any expenditure incurred for the purpose of
enhancing the value of the property, i.e. the cost of an
extension, will be
allowable.
Capital expenditure covers anything which provides an
enduring benefit to the property of more than one year, for
example:
installing air conditioners,
cookers, beds and other furniture carpets, curtains
The item classified as "capital" means that it
forms part of the base cost of the property for capital gains
disposal purposes.
The base cost includes all costs of
acquisition and enhancement together with incidental costs of
disposal and acquisition as noted above.
The above are general guidelines. Please confirm the latest
information with your accountant or we can recommend one for
you.
Straits Times Mar 29 2002
Property tax deductible against rental income. Ong
Khiaw Hong, Director (Taxation) Ministry of Finance.
Ong referred to a letter in the Forum from Mr Chew Keng Seng.Mr
Chew said the property tax is unfair as companies and individuals
renting out properties are subject to double taxation and losses
cannot be offset against profits in subsequent years.
Mr Ong replied that property tax is a wealth tax and property
owners have to pay property tax regardless of whether he occupies
or lease out the property.
Income tax is imposed on the earnings or net rent derived from the
property and there is no double taxation as the property tax is
deductible against rental income.
Losses can be carried forward and offset against profits if the
tax payer is in the property business. He is a trader
and the properties are goods used in trading, NOT
investments. The capital gains will also be taxable as
trading income.
For the investor, Mr Ong implies that losses cannot be
carried forward. He said that any gains at sale will be treated as
capital gains and therefore NOT subject to tax although in foreign
countries like the U.K and Australia,the investor is taxed on
capital gains.
The last reason is why Singapore properties are attractive to
foreign investors, unlike the UK and Australian properties.
However, any investor who sells his properties in the first 3
years are liable to capital gains tax, with 100% for the first
year, reducing by 33.3% for the next 2 years.
Email judy@asiahomes.com
if you wish to buy Singapore properties. We will arrange
financing, valuation and manage your
properties.
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asiahomes.com
Pte Ltd. Website: asiahomes.com.
House Agent's Licence No. AD041-07306B
Blk 1002, Toa Payoh Lor 8,
#01-1477,
Singapore 319074, Republic of Singapore
Mobile Tel: +65 9668 6468, 9668 6469
Tel: +65 6254 3326, 6254 2728
Fax: +65 6256 0501, 64545 843
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