The current income tax policy for individuals who sell their properties will not be tightened.

This is according to the Ministry of Finance, who wished to clarify the proposed change in the Income Tax public consultation document.

It reiterates that the only change proposed involves a relaxation of income tax treatment aimed at giving certainty of non-taxation to individuals who do not sell properties frequently. This means that when individuals sell their properties, they will be certain that the gains made from selling their properties will not be subject to income tax if they have not sold any properties in the preceding four years.

This change is in response to existing public feedback as over the years, such certainty of non-taxation has not been provided.

Also, the proposed change does not mean that individuals who have sold more than one property within a four year period will automatically be subject to income tax. The MOF says this is not an anti-speculation measure, and individuals who sell properties more frequently will still be under the current and long-standing income tax treatment in this regard. Whether they will be subject to income tax depends on the facts and circumstances of each case.

Individuals who are taxed in this regard are normally those who regularly transact in property, and whose gain from the disposals is assessed to be income.

As per the current practice, individuals are not required to report to IRAS for income tax purpose every time they sell their properties, as IRAS conducts its own audits of property transactions for possible cases of assessable income.