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Singapore Inheritance & Gift Tax Guide

Singapore abolished estate duty with retrospective effect from 15 February 2008. There is no gift tax in Singapore. These features, combined with no capital gains tax and no wealth tax, make Singapore a premier jurisdiction for legacy and succession planning via trust structures and family offices. All amounts in SGD.

For related guidance, see our Wealth Tax Guide →, Capital Gains Guide →, Investment Income Guide →, and Personal Tax Guide →.

No Estate Duty (Abolished 2008)

  • Estate duty was abolished with effect from 15 February 2008. The abolition is permanent and covers all assets — immovable property, shares, bank accounts, and personal effects — regardless of value.
  • Prior to abolition, estate duty applied at progressive rates up to 10% on estates exceeding SGD 9 million in value. The government concluded that estate duty was not a significant revenue source and its removal would strengthen Singapore's position as a wealth management hub.
  • There is no inheritance tax in any form. Beneficiaries receive assets free of any inheritance-related tax liability.

No Gift Tax

  • Singapore does not impose gift tax. Any transfer of assets by way of gift — whether cash, shares, property, or other assets — is not subject to gift tax.
  • Gifts are also not subject to income tax in the hands of the recipient (unless the recipient derives income from the gifted asset subsequently).
  • Stamp duty may apply on the transfer of certain assets (e.g., property, shares) regardless of whether the transfer is a gift or a sale. For property gifts, BSD and ABSD may apply.

Trust Structures

  • Singapore trusts are widely used for wealth succession, asset protection, and estate planning. The Trustee Act and the Trust Companies Act (regulated by MAS) provide a robust legal framework.
  • Income earned by a trust may be taxed depending on the trust structure. However, distributions to beneficiaries are generally tax-free in the beneficiaries' hands (similar to the one-tier system).
  • Singapore offers licensed trust companies and has developed a sophisticated trust ecosystem, with common structures including discretionary trusts, purpose trusts, and charitable trusts.

Wealth Management & Succession Planning

  • The absence of inheritance and gift taxes makes Singapore a naturally attractive jurisdiction for high-net-worth individuals (HNWIs) seeking to establish multigenerational wealth structures.
  • Family offices in Singapore routinely use trust and foundation structures to manage succession without tax leakage.
  • Foreign investors relocating to Singapore face no adverse inheritance or gift tax consequences on their worldwide assets (subject to the territoriality principle).

Probate & Administration

  • While there is no estate duty, probate and administration are still required for assets held in Singapore. Court fees and legal costs apply, but these are modest and not tax related.
  • IRAS does not require any tax clearance for deceased estates (unlike some jurisdictions that require a tax clearance certificate before distribution).