I have given numerous talks on the tax implications of property investments/transactions in the past and one of the most common misconception of property investors is that the disposal of properties can only be subject to Real Property Gains Tax (“RPGT”). Boy, were they surprised when I told the participants that the Inland Revenue Board (“IRB”) can charge the gain on the disposals to Income Tax!
Many are still unaware of the laws governing the taxation of property transactions and the tests adopted by the Inland Revenue Board (IRB) to determine whether the gains on disposals of property transactions are subject to Income Tax or RPGT.
I was delighted when I was invited by NST: Real Estate & Decor (RED) to contribute an article to their papers. So I thought that this would be the most ideal topic to touch on so that I can create some awareness on this subjective issue of taxation of property transactions to the public.
You can read the newsprint version here:
Read more about this interesting topic in my article which was published in NST: RED on 7th December.