THE Finance Ministry has clarified that its proposal to make the law clearer on taxing the gains on property sales gains is not intended to tighten current policy on the matter.

Rather, the proposed tax change is to relax the income tax treatment 'aimed at giving certainty of non-taxation' to individuals who do not sell properties frequently.

Since last month, the Finance Ministry has been getting feedback on a proposal to allow anyone, who sells only one property in any four-year period, to enjoy any gains he may make from his sales tax-free. The consultation on the proposed tax change ends next Tuesday.

But since news of the the proposal hit the street on Wednesday, there had been some confusion among investors as to what the proposed change might entail.

To clear the air, MOF came out with a statement on Thursday afternoon to assure investors that there is no change to the current and long-standing income tax treatment on individuals who have sold more than one properties within a four-year period.

The move is also not an anti-speculation measure, said the ministry.

'Whether individuals who sell properties more frequently are subject to income tax depends on the facts and circumstances of each case,' it said.

MOF stressed that 'there is no requirement that individuals must report to Iras for income tax purpose every time they sell their properties - this will also continue to apply going forward.'

Iras has alsways conducted its own audits on property transactions for possible cases of assessable income, it added.

The proposed tax change has come about, in response to feedback, and MOF is proposing this improvement as part of its regular review of the Income Tax Act.