Are capital gains subject to tax in Singapore?

Generally, capital gains are not taxable in Singapore. However, what is capital and what is not is a question of fact, depending on the nature and intent of the transaction.

When certainty is required before a significant transaction, taxpayers can apply for an advance ruling.

Recent summaries of income tax advance rulings could shed some light on how the Inland Revenue Authority of Singapore assesses the nature of gains:

• Taxability of gains arising from transfer of intellectual property rights (advance-ruling-summary-no-17-2026.pdf)
• Tax treatment applicable to the sale of property (advance-ruling-summary-no-18-2026.pdf)
• Whether a company meets the economic substance requirement and therefore qualifies as an “excluded entity” (advance-ruling-summary-no-21-2026.pdf)