Tax Planning
Singapore’s Advance Ruling Updates & Rental-Expense Simplifications: What Expats & Landlords Should Know
New advance rulings clarify foreign trust distributions and property gain tax treatment, alongside simplified rules for rental expense deduction choices—important for non-residents and property owners in Singapore.
By NomadicTax Research Team • 5-8 min read • September 3, 2026
## What’s new from IRAS as of mid-2026
### 1. **Advance rulings**
Singapore’s IRAS published several new advance rulings as of **July-August 2026**, including:
- Whether a company qualifies as an “excluded entity” under Section 10L (economic substance) for tax purposes. ([iras.gov.sg](https://www.iras.gov.sg/taxes/corporate-income-tax/specific-topics/advance-ruling-system-for-income-tax?utm_source=openai))
- Treatment of **foreign trust distributions**, specifically whether deferred distributions are taxable as part of income. ([iras.gov.sg](https://www.iras.gov.sg/taxes/corporate-income-tax/specific-topics/advance-ruling-system-for-income-tax?utm_source=openai))
- **Gains from property sales**, clarifying what counts as business income vs capital gains. ([iras.gov.sg](https://www.iras.gov.sg/taxes/corporate-income-tax/specific-topics/advance-ruling-system-for-income-tax?utm_source=openai))
These rulings help expats, property investors, companies with trusts, and other cross-border cases better understand how Singapore tax law applies uniquely to their circumstances.
### 2. **Rental-expense deduction simplification**
The **Tax Season 2026** guidance now allows individuals with rental income from residential property to **opt** to claim rental expenses at a flat rate of **15% of gross rental income**, instead of tracking every deductible expense, **plus** interest on any loan used to purchase the property. ([iras.gov.sg](https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/understanding-my-income-tax-filing/tax-season-2026---all-you-need-to-know?utm_source=openai))
## Importance for different taxpayers
- **Expats & foreign-trust beneficiaries**: Foreign trust distributions are often tricky; the rulings clarify when distributions are deferred and whether deemed remittance triggers taxation. Use the new rulings to plan distributions or trust setups.
- **Landlords & property investors**: The 15% deemed expense option simplifies record keeping. If total eligible actual expenses are significantly more than 15%, retain detailed records; otherwise, the flat rate offers convenience.
- **Businesses with foreign income**: The 10L rulings around economic substance may affect structuring of entities, especially for firms using Singapore holding companies or excluded entities.
## Actionable steps & examples
1. **Calculate both ways**: For your rental income, compute tax both using actual expenses and using 15% deemed rate to see which yields lower tax liability.
2. **Advance ruling applications**: If you're unsure of tax treatment (foreign trust, property gains, economic substance), apply for an advance ruling early—these are binding and reduce audit risk.
3. **Trust structuring**: If setting up or receiving income from a foreign trust, align structuring so that deferred distributions or remitted foreign income are clear under IRAS rules.
**Example**: Jade, an Australian non-resident with rental property in Singapore, decides between claiming detailed repairs, utilities, maintenance vs flat 15%. If her actual expenses total only 10% of gross rental income, she saves time and risk by using the 15% rate.
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Author: **NomadicTax Research Team**, category: **Case Studies / Tax Planning** — readTime ~7 min.