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Buyer’s Stamp Duty & Additional Buyer’s Stamp Duty

Posted by Clement Ying on August 7, 2020
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Taxes form part of every Singapore property transaction but the exact amount will vary depending on the value of your property. For Singapore new launch residential property purchases, a significant amount for buyers would be the Buyer’s Stamp Duty and for some, the Additional Buyer’s Stamp Duty.

1) Buyer’s Stamp Duty (BSD)

This is a mandatory Stamp Duty that applies to all Singapore private residential property purchases, with the rates shown below. Singapore new launch private residential properties are at least $600,000, meaning that buyers will either be paying the 3% or 4% tax bracket.

Table 1: Singapore Private Residential Buyer’s Stamp Duty Rates
Source: IRAS

2) Additional Buyer’s Stamp Duty (ABSD)

This is essentially a wealth tax and foreigner tax, with the rates detailed below.

For Singaporeans, the first private residential property purchased is exempted from the ABSD. Singaporean buyers will need to pay a hefty ABSD of 12% for their 2nd Singapore private residential property and 15% for their 3rd and subsequent Singapore private residential property.

Permanent residents will need to pay an additional 5% ABSD for their first Singapore private residential property and 15% for their 2nd and subsequent Singapore private residential property.

Foreigners and companies have to pay 15% and 20% respectively for ABSD even if it were their first Singapore private residential property.

Table 2: Singapore Private Residential Additional Buyer’s Stamp Duty Rates
Source: IRAS

Illustration: Amount of Stamp Duty payable for the purchase of a Singapore private residential property worth $1.2’M

Total Buyer’s Stamp Duty Payable for Singaporeans
Total Additional Buyer’s Stamp Duty Payable for Singaporeans

Exceptions

Foreigners under Free Trade Agreements (FTAs) are accorded the same treatment as Singaporean for the purchase of Singapore residential property. These are Nationals and Permanent Residents of Switzerland, Liechtenstein, Norway, Iceland and Nationals of United States of America. Such buyers are required to submit an application for remission so as to enjoy the same treatment as Singapore Citizens for the purchase of Singapore residential property.

Remission of ABSD

ABSD remission (by way of lower ABSD rate or full remission) may apply to co-purchase by a married couple involving a Singaporean spouse or SPR spouse. There will be no remission of ABSD for married couples who are SPR and foreigner on or after 12 Jan 2013.

Refund of ABSD

The purchase of a second residential property by a married couple involving at least one Singaporean may qualify for ABSD refund subject to the following conditions:

  1. ABSD has already been paid on the second residential property
  2. The first property is sold within 6 months from the date of purchase of the second property or TOP/CSC (whichever is earlier) of the second property
  3. The married couple has not purchased or acquired a third or subsequent property from the date ofpurchase of second property to the date of sale of the first property

Important Stamp Duty Deadlines

Stamp duty is payable on documents including a lease, sale, purchase, gift or mortgage of property in Singapore.

Stamp Duty is payable 14 days from the date of execution if the document was signed in Singapore and 30 days of its receipt in Singapore if the document was signed overseas.

Up to 4 times may be imposed if documents are stamped late or insufficiently stamped. Unstamped documents are not admissible as evidence in court and cannot be acted on or registered or authenticated.

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