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

[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.

 

[ph1l]

Are my trading profits taxable in Singapore?

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

The critical point is that capital gains are not taxable in the U.S. if the nonresident alien does not spend more than 183 days per year in the U.S. Most active traders don’t generate significant dividend income paid by U.S. companies, so tax withholding is not a problem. Many of them get a foreign tax credit for U.S. tax withholding in their resident country.

See also https://www.elitetrader.com/et/threads/how-do-you-manage-estate-tax-risk-as-non-us-trader.356248

 

[Cyrix]

You will probably be subject to taxes withheld from dividends, but you won't owe capital gains taxes to the U.S.

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.

 

[ph1l]

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.

The answers appear to be no for capital gains.
https://www.iras.gov.sg/IRASHome/In...f-Property--Shares-and-Financial-Instruments/

Gains from Sale of Shares and Financial Instruments
Generally, profits or losses derived from the buying and selling of shares or other financial instruments are viewed as personal investments. Payouts from insurance policies are also not taxable as they are capital receipts.

These profits are capital gains and are not taxable. You need not report such gains in your tax return.

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/

That’s why, if you’re an employee, your take-home pay is lower than your official salary. A percentage of your salary is automatically deducted as CPF contributions every month and deposited into your CPF accounts.

Disclaimer: the closest I've been to Singapore has been vacations in Thailand.

 

[cruisecontrol]

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.

 

[noddyboy]

Singapore doesn't tax.