Singapore has no capital gains tax, but a trading gain on property is taxable income

The question

Mr Iqbal sold a property in 2026 at a gain and asks whether it is taxable. IRAS is considering whether he was merely realising a capital investment or was trading in properties, applying the Badges of Trade to the facts in totality. He held the property only briefly and had spruced it up before selling, and wants to know how IRAS decides whether the gain is taxable at all.

Consider the following statements.

1. (i) Singapore generally does not tax capital gains on the sale of a property.
2. (ii) A gain from trading in properties, or with a profit-seeking motive, may be taxable as income.
3. (iii) IRAS applies the Badges of Trade — intention, holding period, frequency, improvements and financing — in totality.
4. (iv) A single factor, such as selling within six months, by itself makes the gain a taxable trading gain.

1. A. (i), (ii), (iii) and (iv)
2. B. (i), (ii) and (iii) only
3. C. (i) and (iii) only
4. D. (ii) and (iii) only