Kenneth Chua, 44, is an IT manager who earns $7,500 a month and a one-and-a-half-month bonus, and his chargeable income from the job is $80,000. He holds Singapore bank shares, $100,000 in a US-domiciled fund of US shares, fixed deposits, and a condominium unit he owns outright and began renting out this year for $3,000 a month. In 2026 he also sold some shares at a $12,000 gain, and he wants to know which of this income he must declare.
Singapore does not have a capital gains tax. Individual investors who sell shares, unit trusts or property at a profit generally pay no tax on the gain, and dividends from Singapore companies are not taxed a second time. Rent is the main investment income that is taxed, and some interest and frequent trading can be taxed too.
Of Kenneth's investment income, only the rent adds to his Singapore tax, by $3,519 a year. His largest other tax cost is collected abroad, where his US-domiciled fund loses about $600 a year to withholding tax. The sections below set out how each type of his investment income is taxed in 2026.
Which Of His Investment Income Is Taxable?
The Inland Revenue Authority of Singapore (IRAS) describes the treatment of each type of income on its What is taxable, what is not pages (checked 27 September 2026).
| Type Of Income | Taxable For Individuals? | Exception |
|---|---|---|
| Gains on shares, bonds, funds and property | Generally no | Gains from trading |
| Dividends from Singapore-resident companies | No | Dividends from co-operatives |
| Foreign dividends received in Singapore | No | Received through a partnership in Singapore |
| REIT distributions | No | Received through a partnership, or from a trade in REITs |
| Interest from approved banks and licensed finance companies | No | |
| Interest from bonds | No | Bonds held by a partnership or as trading stock |
| Interest from non-approved banks, pawnshops and private loans | Yes | |
| Rental income | Yes, net of allowable expenses |
Source: IRAS
Taxable income from this table is added to employment and other income, and taxed at the resident rates from 0% to 24% (checked 27 September 2026). Of Kenneth's five kinds of investment income, only the rent falls in a taxable row.
Is His $12,000 Share Gain Taxed?
There is no capital gains tax. According to the IRAS page on gains from sale of property, shares and financial instruments (checked 27 September 2026), three kinds of gain are generally not taxed:
- Profits from buying and selling shares and other financial instruments, digital tokens included, are viewed as personal investments.
- A gain on the sale of a Singapore property is a capital gain.
- Payouts from insurance policies are capital receipts.
A gain can become taxable when IRAS judges that the investor is trading. IRAS names these criteria for property:
- How often the investor buys and sells.
- The reasons for buying and selling.
- Whether the investor has the financial means to hold for the long term.
- How long the investor holds each purchase.
IRAS publishes no threshold for any of them. An investor who deals often, over short holds and with borrowed money, is more likely to have gains assessed as income. Kenneth held the shares for six years and sells a few times a year with his own savings, so his $12,000 gain is likely to be treated as a personal investment gain, and he does not declare it.
How Are His Dividends Taxed?
Singapore uses a one-tier corporate tax system. The company pays tax on its profits, and that tax is final, so the dividend is not taxed again in the shareholder's hands. The IRAS dividends page (checked 27 September 2026) lists the non-taxable sources below.
- Resident companies listed on the Singapore Exchange.
- Private resident companies.
- Unit trusts in Singapore.
- Approved CPF Investment Scheme agent banks.
Foreign dividends received in Singapore by resident individuals are also not taxable, unless they are received through a partnership in Singapore. Distributions from Real Estate Investment Trusts (REITs) follow the same rule. Dividends from co-operatives, such as NTUC FairPrice Co-operative, are the main taxable exception. Kenneth's bank share dividends and his US fund's dividends are both outside Singapore tax.
Is The Interest On His Deposits Taxable?
Most interest earned by individuals is not taxable. According to the IRAS interest page (checked 27 September 2026), interest from these sources is not taxable, unless it is earned through a partnership or a trading business:
- Deposits with approved banks and licensed finance companies in Singapore
- Bonds
- Foreign sources
Interest from these sources is taxable:
- Non-approved banks
- Pawnshops
- Loans to companies or persons
- The refund of excess employee CPF contributions
The Monetary Authority of Singapore (MAS) keeps the list of approved banks and licensed finance companies. Kenneth's fixed deposits are with a local bank on that list, so their interest is not taxed.
Read Also: Singapore Income Tax Rates For YA 2026
How Much Tax Does His Rent Add?
Rent is the main investment income that Singapore taxes. The IRAS page on income from property rented out (checked 27 September 2026) taxes the full rent, including maintenance and furniture rent, less allowable expenses. For tenanted residential property, IRAS pre-fills deemed expenses of 15% of the gross rent, and the owner can still claim mortgage interest on top.
Kenneth owns the unit alone and rents it out for $3,000 a month. He has $80,000 of chargeable income from his job.
| Item (Kenneth) | Amount |
|---|---|
| Gross rent ($3,000 × 12) | $36,000 |
| Deemed expenses (15% of gross rent) | $5,400 |
| Net rent before mortgage interest | $30,600 |
| Chargeable income with rent ($80,000 + $30,600) | $110,600 |
| Tax without rent | $3,350 |
| Tax with rent ($3,350 + $30,600 × 11.5%) | $6,869 |
| Tax on the rent | $3,519 |
Source: IRAS rental rules and resident tax rates
Kenneth has no loan on the unit, so the $30,600 stands. For an owner with a mortgage, the interest on the loan for the unit would reduce it further. Rent on a jointly owned property is taxed on each owner by legal share, so his colleagues Wen Hui and Ravi, a couple owning a similar unit 50:50, would each add $15,300.
What Does His US Fund Lose To Withholding Tax?
Singapore does not tax most foreign dividends, but the country where a fund is domiciled can deduct tax before the dividend is paid. A Singapore investor holding US shares through a US-domiciled fund typically has 30% withheld. Through an Irish-domiciled fund holding the same shares, the rate is typically 15%.
| Fund Holding $100,000 Of US Shares (2% Yield) | US-Domiciled Fund (Kenneth) | Irish-Domiciled Fund |
|---|---|---|
| Dividends a year | $2,000 | $2,000 |
| Typical withholding rate | 30% | 15% |
| Withheld a year | About $600 | About $300 |
Source: Typical treaty rates for funds; not an IRAS figure
The 15-point difference costs Kenneth about $300 a year on his $100,000, or about 0.3% of the fund's value. That is more than the expense ratio of many index funds.
Read Also: How Much Tax Do You Pay When Withdrawing From Your SRS Account?
Read Also: Work Out Your Household's Income Tax And Reliefs In Cashmere Pocket
Where Does Kenneth Pay Tax On His Investments?
Kenneth declares $30,600 of net rent, which adds $3,519 to his tax, and declares nothing for his share gain, dividends or deposit interest. He sells his US-domiciled fund and buys an Irish-domiciled fund of the same shares. The sale creates no Singapore tax, and the withholding on his dividends falls from about $600 to about $300 a year.
Investors who hold shares, funds, bonds and bank deposits for the long term pay little or no Singapore tax on them, so fund domicile and fees change their returns more than local tax rules do. Landlords and frequent traders are in a different position, because rent is taxed at the owner's marginal rate and IRAS decides the trading question on the facts of each case. The treatment above is the general position published by IRAS on 27 September 2026.