12 May, 2020

Quora Answer: Are Money Market Funds Taxable?

The following is my answer to a Quora question: “Are money market funds taxable?

Strictly for Singapore, gains in the money market are considered capital appreciation.  Since Singapore does not have a capital gains tax, money market gains are tax free.  Singapore’s tax regime is leans heavily on primarily consumption based tax, and less on earnings based tax than many other developed nations.  People are not penalised simply because they earn more.  They are taxed according to how much they consume, which encourages savings and investments, not consumer expenditure.



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