Singapore removes the end date on its share-gains safe harbour
Budget 2025 removed the sunset for section 13W and extended it to preference shares and group-level testing.
- Where
- ASEAN ↔ Japan · China ↔ ASEAN · India ↔ ASEAN · Singapore
- Published
- Last reviewed
- Prepared
- Prepared by the Intelligence desk with AI-assisted research from the cited sources, checked on 12 November 2026.
- Effective
- 18 February 2025
- Version
- 1
What changed
Section 13W of Singapore's Income Tax Act exempts a company's gains on disposing of shares in another company where it held at least 20% for a continuous 24 months. The rule was due to expire for disposals after 31 December 2027. Budget 2025 removed that sunset, extended the rule to qualifying preference shares, and allowed the holding threshold to be assessed on an accounting-group basis. Section 10L can still tax gains on foreign assets received in Singapore where the selling company lacks economic substance.
Who is affected
Groups with Singapore holding companies planning exits, reorganisations or disposals of subsidiaries; investors comparing Singapore and Hong Kong as holding locations.
Why it matters
Exit planning no longer has to work around a 2027 deadline. Groups that hold through a Singapore company with real substance keep certainty that qualifying share gains are not taxed.
What to examine next
Confirm the 20% and 24-month conditions for each holding, using the group basis where relevant.
Check section 10L substance if the shares sold are in a foreign company and proceeds come to Singapore.
Confirm the legislated wording before relying on it for a specific transaction.
See the Singapore vs Hong Kong Decision Map.
Sources
- Singapore Budget 2025: what it means for businessesGrant Thornton Singapore · published 12 Nov 2026 · checked 12 Nov 2026 · secondary source
- Singapore Highlights 2026Deloitte · published 12 Nov 2026 · checked 12 Nov 2026 · secondary source
Next steps, if you need them
Original analysis by the UNBOUNDED Intelligence desk. Linked sources belong to their publishers. This briefing is information, not legal, tax, investment or other professional advice. Its appearance here is not an endorsement by UNBOUNDED or any institution of a transaction, jurisdiction, strategy or counterparty.