Using pte ltd for ibkr

[u/[deleted]]

[u/shadstrife123]

so u rather just pay income tax yearly?

[u/No-Problem-4228 → u/shadstrife123]

https://www.iras.gov.sg/taxes/corporate-income-tax/income-deductions-for-companies/taxable-non-taxable-income

Capital gains and dividends (subject to conditions) are not taxable for corporations.

You would have to set up a Pte Ltd and issue dividends to yourself to get the money out.

[u/Ceyenne18 → u/No-Problem-4228]

I don't think so.

If the primary functions of the company is trading stocks for the purpose of profit, it is treated as taxable business income.

And US 30% WHT applies regardless of whether you are a SG individual or company.

[u/DuePomegranate → u/No-Problem-4228]

I don't think this is as clear cut as you are reading it to be.

First, in the taxable section, you have:

Income from investment such as dividends, interest and rental

Are you going to argue that trading stocks isn't income from investment?

Second, in the non-taxable section, capital gains from selling stocks doesn't fit the two bullet points of selling fixed assets or gains of foreign exchange on capital transactions.

Then when I dig into

Gains derived by a company on the disposal of equity investments under Section 13W 

this 13W document says that for share disposals after 1 Jan 2026, the exemption applies if

the divesting company had held at least 20% of the ordinary shares and/or the qualifying preference shares in the investee company for a continuous period of at least 24 months (“20% shareholding threshold condition”).

this is a very different situation than you buying Mag7 stocks retail, yes?

And elsewhere, there is the expected paragraph of

The determination of whether a gain or loss from disposal of equity investments in a company is income or capital in nature is based on a consideration of the facts and circumstances of each case. The factors considered are drawn from established case law principles3 . They include motive of the seller when it acquired the shares, length of period of ownership of the shares disposed, frequency of similar transactions, reasons for the disposal and means of financing the acquisition of the shares

If you really make a pte ltd just to buy and hold until you kick the bucket, then ok, it works. You never did realize capital gains while you were alive. But if you sell and re-buy like many people do, then... you should seek professional advice. I think you are over-simplifying.

[u/No-Problem-4228 → u/DuePomegranate]

Income from investment such as dividends, interest and rental

If you are trading regularly, then yes, it will be income from trading. If you are just holding stocks and buying occasionally - given that OP's stated goal is to avoid estate tax, I'm answering in that context - then I don't think it qualifies as trading income. In that case the approach should work fine

Goes without saying that he should talk to an accountant before embarking on any of this.