The gains on disposal of properties may be exposed to income tax as IRAS may consider the gains to be trading ones, even though the owner/investor may profess that its intention with regard to the acquisition of the property is for investment holding such that the capital gains are not taxable.

There is no “bright line” test, on the characterisation of an asset as capital asset or revenue. Instead, the “badges of trade” may be discerned from case law, are used to characterise the nature of an asset. The “badges of trade” have to be evaluated collectively, as no single measure may be determinative.

In the course of holding a property, an owner/developer may change his intention with regard to the property, i.e. from investment to trading, or vice versa. What are then the tax issues pertaining to such change of intention on the part of the owner/developer?

The Income Tax Act 1947 has also provided a safe harbour rule in section 13W of the Income Tax Act, which insulates gains from the disposal of shares of companies which may own properties. Section 13W however comes with conditions. Some assurance from not being subject to income tax exposure may be obtained where the section 13W conditions are satisfied.

In this workshop, Mr Leung Yew Kwong will throw light on the above-mentioned issues. He will further explain the tax and non-tax aspects of topics relating to the Master Plan, development charge and differential premium, property investment as well as asset sale transactions (acquisition and disposal of real estate).

Participants of the session will also be given the book “Real Estate and Taxation in Singapore” (World Scientific, 2022) as part of the course materials. An all-in-one reference book, it provides a multi-disciplinary approach to the subject for Singapore real estate and tax aficionados.

Please click HERE for event brochure.