The long awaited budget day for 2008 was released today by the new Finance Minister Mr Tharman Shanmugaratnam. With 6.4 billion surplus in revenue at the closing of 2007, the parliament decides to reward citizens, giving rebates. For the important part of realtors (estate agents) and people who invests in real estate in Singapore, you might be interested to know that the estate duty tax has been abolished.
Previously, if you die and have assets of dwelling houses of more than 9 million dollars and CPF/ other tangible assets of more than $600,000, you’re liable for estate duty (death) tax before your properties are distributed to your family/heir.
For the every dollars of your 1st 12 million dollars, you’re previously liable for 5% tax and anything more than 12 million, it’s 10%. With this law abolished, it’s big savings to wealthy individuals.
This probably would attract more high net worth individuals and professionals to be a Permanent Resident in Singapore in the future.