Additional Buyer’s Stamp Duty on Residential Property Effective from 8 December 2011


Dear Valued Clients and Readers

On 7 December 2011, the Government has announced the implementation of additional buyer’s stamp duty (“ABSD“) to be paid by certain profiles of people who buy or acquire residential properties (including residential land).  The new measure will take effect from 8 December 2011.

Who are the Affected Buyers?

a) Foreigners, companies, partnership and societies

b) Singapore Permanent Residents (“PR“) who already own 1 or more residential properties, whether owned wholly, partially, or jointly with others

c) Singapore Citizens (“SC“) who already own 2 or more residential properties, whether owned wholly, partially, or jointly with others

The new ABSD is payable by affected buyers at fixed rates on the actual price paid or market value of the property whichever is the higher.  The ABSD rate will be 10% for (a), and 3% for (b) and (c), on the total price or market value of the property.

Please note that Buyer’s stamp duty (“BSD“) will continue to be payable by all property buyers at unchanged rates.

When is the Effective Date of Implementation of ABSD?

ABSD will apply to Contracts or Agreements (whichever is earlier), or Documents of Transfer*, dated on or after 8 December 2011.

Where an Option To Purchase has been granted on or before 7 December 2011 and exercised on or before 28 December 2011, ABSD will be remitted upon application.

*Where Contracts or Agreements are not applicable

Summary of BSD and ABSD

page5image3128
Transaction
On and before 7 Dec 2011
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On or after 8 Dec 2011
BSD* rates on the total purchase price or market value (whichever is higher)
BSD* rates on the total purchase price or market value (whichever is higher)

page5image16016

ABSD† rates on the total purchase price or market value (whichever is higher)
Foreigners and non- individuals (corporate entities) buying any residential property
1% on first $180,0002% on next $180,0003% for the remainder
1% on first $180,0002% on next $180,0003% for the remainder

page5image26392page5image26936

+10%

page5image30120

PRs owning one and buying the second and subsequent residential property

page5image32376page5image32648

+3%

page5image35536

SCs owning two and buying the third and subsequent residential property

page5image37768page5image38040

+3%
PRs buying the first residential property
1% on first $180,0002% on next $180,0003% for the remainder
page5image46648

1% on first $180,0002% on next $180,0003% for the remainder

page5image49472page5image49744page5image50448

page5image51680

NIL

page5image52944

SCs buying the first and/ or second residential property

Inland Revenue Authority of Singapore has issued the relevant E-Tax Guide on ABSD here.

We trust that the above information is useful to you.

As always, we are pleased to assist you or your company in resolving any potential tax issues.  Please contact us at jack.wong@whm-consulting.com if you would like to discuss any of your/ your company’s concern on tax issues.

Best regards
Jack HM Wong
Founder and Lead Business & Tax Advisor
WHM Consulting Pte Ltd
E-mail: jack.wong@whm-consulting.com

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