Do you have to pay taxes on money that was gifted to you?

08/06/251 minute 35, seconds read

The general rule of thumb is that any gift is taxable unless the value of the gift per say is less than $200. 

However, if the assets later produce income (perhaps they generate interest or dividends, or you collect rent), that income is likely to be taxable. IRAS Publications contains the details. In addition, some states have inheritance taxes. If you recently received a sizeable gift from mom and dad, don't worry about gift tax.In Singapore, there is no specific gift tax. This means that receiving money as a gift—whether from family, friends, or others—is generally not subject to taxation.

Key Points on Gift Taxation in Singapore

  1. No Gift Tax: Singapore does not impose a gift tax. Monetary gifts are not considered taxable income for the recipient. 

  2. Employer Gifts: If you receive gifts from your employer, such as cash or non-cash items for festive occasions or special events as corporate gifts in Singapore (e.g., birthdays, weddings), these are not taxable provided each gift's value does not exceed S$200 and they are generally available to all staff. If a gift exceeds this threshold, the entire value becomes taxable. 

  3. CPF Contributions: For employees, cash gifts from employers (e.g., festive bonuses) are considered Additional Wages and are subject to CPF contributions, regardless of the amount. 

  4. Stamp Duty on Property and Shares: While cash gifts are not taxed, gifting immovable property or shares may attract stamp duty. For properties, stamp duty is calculated based on the market value, and for shares, a 0.2% stamp duty applies on the market value. 

  5. Inheritance: Singapore abolished estate duty for deaths occurring on or after 15 February 2008. Therefore, inheriting money or assets is not subject to inheritance tax. 

Summary

In Singapore, receiving monetary gifts is generally tax-free. However, certain situations, such as receiving substantial gifts from employers or gifting properties and shares, may have tax implications like income tax or stamp duty. It's advisable to consult with a tax professional for specific scenarios.

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