Singapore Resident Trading Stocks Full-Time as Only Source of Income, Taxable?

Discussion in 'Taxes and Accounting' started by Cyrix, Feb 20, 2021.

  1. Cyrix

    Cyrix

    I am a full-time trader (in my personal accounts) trading stocks and futures listed on the exchanges in the US.

    Trading profits (price gains and dividends) are my main source of income.
    I trade frequently, with about thirty trades a day. My holding times are generally less than a month.

    Are my trading profits taxable in Singapore?
    In addition, do I need to pay CPF (Central Provident Fund)?

    Thanks.
     
  2. ph1l

    ph1l

    You will probably be subject to taxes withheld from dividends, but you won't owe capital gains taxes to the U.S. as long as you don't stay in the U.S. more than 183 days per year.
    https://www.forbes.com/sites/greats.../how-to-save-u-s-taxes-for-nonresident-aliens
    See also https://www.elitetrader.com/et/threads/how-do-you-manage-estate-tax-risk-as-non-us-trader.356248
     
  3. Cyrix

    Cyrix


    I am asking about taxes by the Singapore government, not the US.

    https://www.iras.gov.sg/irashome/In...-Income-Tax/Taxes-on-Investments-in-Singapore
    states "Individuals who derive income from investments in property, shares, unit trusts, fixed deposits etc. in Singapore need to pay income tax"

    In addition, I would like to know if a trader also needs to pay the CPF tax (equivalent to the social security tax in the US).
    Thanks.
     
  4. ph1l

    ph1l

    The answers appear to be no for capital gains.
    https://www.iras.gov.sg/IRASHome/In...f-Property--Shares-and-Financial-Instruments/
    And no for Central Provident Fund because it appears to apply only to employment.
    https://blog.moneysmart.sg/budgetin...-guide-interest-rates-minimum-sum-calculator/
    Disclaimer: the closest I've been to Singapore has been vacations in Thailand.:)
     
  5. I don't know about Singapore specifically, but many countries will tax you differently if your trading passes some threshold where they consider you to be carrying on an active business. Then you will pay income tax instead of capital gains. I would contact an advisor in Singapore to see if this is a concern in your case.
     
  6. noddyboy

    noddyboy

    Singapore doesn't tax.