When to Pay Stamp Duty in Singapore
An email from a reader who asked when is it exactly do you have to pay stamp duty when buying a property in Singapore.
When do you pay stamp duty on real estate? I have been thinking about this for a while and was hoping you might be able to shed some light on the subject.
A little advice would go a long way right now. Thankyou.
This is the textbook answer from IRAS’s website,
A document can be presented for stamping at any time before executing (signing). However, once a document is executed (signed), stamp duty must be paid within:
- 14 days from the date of execution if the document is signed in Singapore;
- 30 days of its receipt in Singapore if the document is signed overseas.
Penalties will be imposed on documents that are stamped late or for which stamp duty is underpaid.
To Avoid Penalty
Usually, your conveyancing lawyer will advice you to draft two cheques, one for exercising the option of the property and the other cheque is to pay for your stamp duty to IRAS to avoid penalties.
The late penalty fee is as calculated as 5% per annum calculated on a daily basis on the stamp duty payable
Can I use my CPF Money For Stamp Duty?
Yes, you can! But you’ll have to come out with the amount in your own cash or cheque first before CPF reimburses it back to your bank account; So make sure you have the amount for stamp duty ready first.
How to Calculate Your Stamp Duty Fees
Read this entry which I’ve created for a very easy digest of calculating your stamp duty fees when you’re purchasing your property.
If you have questions with regards to buying or selling a home, feel free to contact me anytime. I won’t bite ;)