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Tax

Capital Gains
There is no capital gains tax in Singapore. Capital gains derived from investing in SGS are not taxed.


Interest and Other Qualifying Income1

  • Resident non-individuals2
    Interest and other qualifying income derived by resident non-individuals (excluding Financial Sector Incentive Standard Tier, Financial Sector Incentive - Bond Market and Financial Sector Incentive  Capital Market companies3) in respect of SGS issued during the period from 28 February 1998 to 31 December 2023 (both dates inclusive) is taxed at a concessionary rate of 10%.
  • Non-resident non-individuals4
    Interest and other qualifying income derived by non-resident non-individuals in respect of SGS issued during the period from 28 February 1998 to 31 December 2023 (both dates inclusive) is exempted from tax.
  • Individuals (Both resident and non-resident)
    Interest and other qualifying income derived by individuals in respect of SGS issued during the period from 28 February 1998 to 31 December 2023 (both dates inclusive) is exempted from tax, except where such income is derived through a partnership in Singapore or is derived from the carrying on of a trade, business or profession.

 

Trading Income
Income earned by SGS Primary Dealers from trading in SGS is exempted from tax.





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1Other qualifying income means discount, prepayment fee, redemption premium, break cost and such other income as may be prescribed by the income tax regulations.
2Including a permanent establishment in Singapore of a non-resident person. 
3Interest and other qualifying income derived by a Financial Sector Incentive - Standard Tier, Financial Sector Incentive - Bond Market or Financial Sector Incentive - Capital Market company in respect of SGS issued during the period from 28 February 1998 to 31 December 2023 (both dates inclusive) is taxed at a concessionary tax of 13.5%, 12% or 5% (as the case may be) with effect from 1 January 2011.
4Non-resident non-individuals include (i) any person who is not resident in Singapore and who does not have a permanent establishment in Singapore; and (ii) any person who is not resident in Singapore and who carries on any operation in Singapore through a permanent establishment in Singapore where the funds used by that
person to acquire SGS are not obtained from the operation.