With immediate effect, the cooling measures shall take place. Attached are summary of how the ABSD (Additional Buyer Stamp Duty) and LTV (Bank Loan to Value) is adjusted in points.
These bittersweet move is somewhat anticipated yet executed very quickly, causing an overnight uproar of sales over showrooms. These measures should hamper existing buying sentiments and should effectively cool en bloc cycle and foreigners’ interest in Singapore residential market.
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.
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.
For a married couple both of whom are SPR, can they apply for a remission if this is there first property.
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.
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.
A Singapore Permanent Resident, who is also a National of USA may apply for a remission of ABSD under the FTA agreement.
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.
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.
Since the introduction of Seller’s Stamp Duty (SSD) on 22 February 2010 and Additional Buyer Stamp Duty (ABSD) on 7 December 2011, there have been a number of revisions in the rates as the cooling measures intensify throughout the years.
Seller’s Stamp Duty
• Holding period of 1 year : 16% of price or market value, whichever is higher
• Holding period of 2 years : 12% of price or market value, whichever is higher
• Holding period of 3 years : 8% of price or market value, whichever is higher
• Holding period of 4 years : 4% of price or market value, whichever is higher
Properties acquired before 20 Feb 2010 will not be subject to SSD.
Additional Buyer’s Stamp Duty
a) FR and *entities- 15% on the purchase or acquisition of any residential property.
b) SPR – 5% on the purchase or acquisition of their first residential property
SPR who already own# 1 or more residential properties 10% on the purchase or acquisition of another residential property.
c) SC – who already own# one residential property 7% on the purchase or acquisition of the second residential property.
– SC who already own# 2 or more residential properties 10% on the purchase or acquisition of another residential property.
# Whether owned wholly, partially or jointly with others.
* Entity means a person who is not an individual, and includes an unincorporated association, a trustee for a collective investment scheme when acting in that capacity, a trustee-manager for a business trust when acting in that capacity and, in a case where the property conveyed, transferred or assigned is to be held as partnership property, the partners of the partnership whether or not any of them is an individual.
I have invited Ms. Dorothy Tay of LegalWorks Law Corporation to answer some of my questions to clear up some confusing facts of how both of it works. Legalworks is a boutique law firm that specializes solely in conveyancing and has lawyers of more than 20 years experience in the field. Ms. Dorothy Tay is the principle solicitor behind Legal Works.