http://www.propertywire.com/news/asia/singapore-property-tax-plans-200909163507.html
PropertyWire, 16 Sep 2009
Singapore tries to calm
property industry fears over new tax plans
The government in Singapore has moved to clarify proposed changes
in income tax laws which many believed could be harmful to the
country’s property industry.
A change due to take effect in
January next year was widely regarded as a move to combat
speculation in the real estate sector as it was thought it would
load more taxes on those who owned more than one property and sold
them within four years for a profit.
But now the Ministry of
Finance has said that there will be no tax on the gains from an
individual who sells a property after 1 January if they have not
sold any other property in the previous four
years.
‘The proposed change is therefore not an anti-speculation
measure.
It does not mean that
individuals who have sold more than one property within a four year
period will automatically be subject to income tax,’ said the MOF
in a statement.
When initial news of the potential change got around, it sparked
off rumours that the government was trying to curb speculation in
the property market.
It sent property investors into panic mode, many of whom returned
to the market only recently.
Prior to MOF´s clarification, there were fears that investors might
pull out of the property market due to the rumours and confusion of
the new ruling, which has undermined the prices of several
properties.
But despite the reassurance by the government, industry watchers
are skeptical of the changes.
Some of whom stand by the anti-speculation theory.
‘We remain believers of the idea that the government may be sending
out a signal through this proposal to cool property transactions,
especially in the high-end, said Donald Chua, an analyst at
CIMB.
In 1996, the government imposed tax on the gains of individuals
made from selling properties within three years of purchase. The
rule continued until 2001 when it was abolished.
----------------------------
Latest Updates @
Singaporenewsalternative.blogspot.com
1. Singapore Citizenship: A National Credit Card?
2. S'pore Govt U-Turn On Property Gains Tax Changes
3. PM Lee, if you are really interested in emulating Israel:
KCR
4. Most Singaporeans not feel well prepared to retire: media
5. SIA's A380 fleet size surpasses 747-400 with latest
delivery
6. Myanmar allegations highlight Singapore bank secrecy
7. Singapore: Maersk ship grounds off Sebarok island
8. Singapore's MoF Introduces TIEA Legislation
9. Singapore PM says to stem flow of foreign workers
10. Eyeing China, Singapore sees Mandarin as its future
11. Eircom lodges court appeal on ComReg charge ruling
12. Why Obama had to impose those Chinese tyre
tariffs