SINGAPORE Law and Practice Contributed by: Dorothy Marie Ng, Monica Yip, Tay Peng Cheng and Tan Shao Tong, WongPartnership LLP
8.5 Tax Benefits Expenses incurred solely for producing the rental income and during the period of tenancy may be claimed as tax deductions. Depreciation of furnishings (eg, furniture, fixtures and electrical appliances) is not claimable.
any arrangement that reduces or avoids liability for stamp duty. 8.3 Municipal Taxes Apart from GST and stamp duty, businesses owning non-residential immovable property are also subject to property tax at the rate of up to 10% on the annual value of the property. 8.4 Income Tax Withholding for Foreign Investors Rental income is subject to income tax, which is payable by the landlord. The prevailing corpo - rate tax rate is 17%. Where real estate is sold by a seller who is a property trader, gains are also subject to income tax. Where the seller is a prop - erty trader who is not resident in Singapore and whose operations are carried on outside Singa - pore, such gains are subject to withholding tax at 15% of the consideration, but the seller may file a tax return to claim a deduction for allow - able expenses. Where a seller is not a property trader, the gains are not subject to tax as there is no capital gains tax in Singapore.
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