By 2025, it plans to implement an Imputed Rental Income Tax (IRIT) with specific thresholds and a distinct rate schedule in the Inland Revenue Act (IRA). Anti-avoidance measures will be put in place to prevent misuse of “residential” companies and discretionary trusts to evade IRIT, Finance Ministry sources revealed.

Changes to the central tax structure will include replacing the capital gains tax (CGT) exemption for primary residences with a threshold that aligns with the IRIT value threshold.

The exemption for capital gains taxation for listed companies on the stock exchange will also be removed. Following a review of lease amounts and affordability, an increase in stamp duties on land leases from 0.1 to 0.2 per cent is being considered, according to sources from the Fiscal Policy Department.