4 More Scenarios for Additional Buyer Stamp Duty (ABSD)

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Following up with the previous guide on ABSD and SSD, Dorothy Tay the principle solicitor for Legalworks has shared with us four more new scenarios which she has posed to IRAS. These are IRAS official answers.

SCENARIO 1

We have a client SC who has sold his HDB property. Option was issued and accepted but 1st appointment has not taken place and HDB’s approval for sale not obtained yet.

If he now buys another property before the 1st appointment and apart from the HDB, he does not own any other residential property, is ABSD payable? Is the issue of whether ABSD is payable dependent on the 1st appointment or a person is deemed to have sold his HDB once the option issued has been accepted.

IRAS REPLY

For the purpose of stamp duty, your client is considered to have sold the HDB flat, when the Buyer exercised his option to purchase. Upon the sale of the flat, your client is therefore not liable for ABSD on the purchase of the next residential property, as he is considered to be acquiring his first residential property.

SCENARIO 2

For a married couple both of whom are SPR, can they apply for a remission if this is there first property.

IRAS REPLY

ABSD may be remitted on the first residential property purchased by a married couple,
involving at least one Singapore Citizen spouse
. There is no provision for remission when they are both Singapore Permanent Residents.

SCENARIO 3

If a person is a US citizen and also a SPR. Must he pay ABSD if he buys his first property. Can he choose to use his US citizenship so that he need not pay ABSD.

IRAS REPLY

A Singapore Permanent Resident, who is also a National of USA may apply for a remission of ABSD under the FTA agreement.

SCENARIO 4

If a husband owns a HDB flat and the wife is only listed as an essential occupier but she is not an owner; when the wife buy a property and it is her first property, is ABSD payable? Assuming both are Singapore Citizens.

IRAS REPLY

If wife is a Singapore Citizen, an occupier of a HDB flat, and does not own any residential property; she is not liable for ABSD on the first residential property that she purchases.

Dorothy and her legal team can be reached at +65 63251722 for any conveyancing advisory.

legalworks-edited

Written by Benson Koh
Benson Koh is a professional real estate realtor with over 11 years of experience specializing in all forms of real estate consultancy and brokeraging of different segments from regal homes to commercial spaces. Also a boutique developer, he manages bothSRI5000 Developments which concentrates on landed homes as part of his land bank segment and Singapore Realtors Inc (SRI), a real estate agency which has over 7 years of group experience. You can reach him here via various channels. [ Facebook | Linkedin | Twitter | RSS Feed ]