IRAS – Streamlining the Stamp Duty Rate Structure


Following the Budget 2014, IRAS has published an e-tax guide outlining the stamp duty changes:

1.  Buyer’s Stamp Duty (“BSD”)

With effect from 22 February 2014, BSD rates will be changed as follows:

First $180,000     1%
Next $180,000     2%
Remainder             3%

BSD will be rounded down to the nearest dollar.


2.  Share Transfer Duty 

With effect from 22 February 2014, stamp duty payable on share transfer is 0.2% of the purchase price or market value of the share transferred, whichever is higher.
3.   Lease Duty

With effect from 22 February 2014, stamp duty payable for leases with lease period of 4 years or less will be calculated based on the total contractual or market rent, whichever is higher.  For leases with lease period of more than 4 years, the stamp duty payable will be calculated based on 4 times the average annual rent (which is defined as the higher of the average annual contractual or annualised market rent, and includes other considerations such as payments for furniture and fittings, maintenance fee and conservancy charges where applicable).

In addition, the following rates will be applied:

AAR <= $1,000      Exempt

AAR > $1,000        0.4% of the total rent for the period of the lease (for lease term of 4 years of less)

AAR > $1,000       4 times of the total rent for the period of the lease (for lease term of more than 4 years).


4.  Mortgage Duty

With effect from 22 February 2014, the following rates  (subject to a cap of S$500) will be applicable:

Mortgage                     0.4% of the amount of facilities granted on the mortgage

Equitable mortgage   0.2% of the amount of facilities granted on the mortgage

Variation mortgage   0.4% of the amount of facilities granted on the mortgage

Transfer, assignment
or disposition of any     0.2% of the amount transferred, assigned, disposed of
mortgage or debenture

If you have any questions, please contact us at support@whm-consulting.com.

Be Well!
Jack:)

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2 thoughts on “IRAS – Streamlining the Stamp Duty Rate Structure”

  1. Question, IRAS says stamp duty is paid based on the purchase price or market value which ever is higher. Whats the definition of market value?

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  2. For shares transfer, where the shares are listed on Stock Exchange of Singapore, the market value is determined based on the closing price as of the date of the document.

    For non-listed companies, typically we use the net asset value, to be determined based on the company’s statement of financial position (or balance sheet) of not more than 24 months from the date of the transfer instrument.

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