This alert provides a summary of the extension and the changes to the tax exemption under Section 13Z of the Income Tax Act.
The Government has extended the tax exemption on gains on disposal of equity investments provided under Section 13Z of the Singapore Income Tax Act (the Act) which was originally effective till 31 May 2022, to 31 December 2027. The Inland Revenue Authority of Singapore (IRAS) has also updated its e-Tax guide, Certainty of Non taxation of Companies’ Gains on Disposal of Equity Investments, on 10 December 2020 to cover the above extension and the changes provided under the extension.
This tax update provides a summary of the extension and the changes to the tax exemption under Section 13Z of the Act that will be of interest to companies disposing investments in ordinary shares of another company on or after 1 June 2012, and also to property-related businesses.
