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)
- Treatment of foreign trust distributions, specifically whether deferred distributions are taxable as part of income. (iras.gov.sg)
- Gains from property sales, clarifying what counts as business income vs capital gains. (iras.gov.sg)
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)
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
- 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.
- 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.
- 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.
Author: NomadicTax Research Team, category: Case Studies / Tax Planning — readTime ~7 min.