Proposed change under spotlight:
Individuals who sell a property on or after Jan 1, 2010 will automatically not be subject to income tax, if he has not sold other properties in the previous four years. Even if he has, Iras will determine if a tax on income should be levied, just like existing practice.
What the situation is now:
When an individual sells a property for a profit, Iras decides if the gain is income in nature based on the facts of the sale. Factors include circumstances leading to sale, how long the individual held the property, how frequently he was selling properties in the past.
Intent of proposed change:
To provide certainty of non-income-taxation to individuals who sell a property.
Perceived to be an anti-speculation measure by some dampened market sentiment.
Source : Today – 10 Jul 2009