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

No related posts.

Great news for property owners who will be having their AV(annual value) reduced for Q1 of 2009.

SINGAPORE : The Inland Revenue Authority of Singapore (IRAS) has reduced the Annual Values of over 115,000 private properties in the first quarter of this year.

That is almost 100 per cent of the total number of properties reviewed.

With the reduction and the 40 per cent property tax rebate announced in this year’s Budget, owners of these properties will pay between 45 per cent and 60 per cent less in terms of property taxes…

Channel News Asia

Oh and yes, have you file your income tax for 2008 yet? Deadline is 15th April 2009 for your normal filing and 18th for E-filing, don’t miss it!

Related posts:

1. IRAS – Tax Rebate and Defer Your Income Tax Payment

Every eligible Singapore tax payer should have a letter hitting their mailbox from our friend, the Inland Revenue Authority of Singapore (IRAS) on 2 things coming from the Singapore Budget’s Resilience Package.

One-off Income Tax Rebate

So everyone gets a 20% one-off income tax rebate or maximum of $2,000 for tax payable for 2009.

Defer Your Income Tax Payment

You could choose the option to delay your payment for 3 months using your SingPass. Note that you’ll also have to be paying your tax by GIRO to be eligible for the deferment.

Well, 6 month’s isn’t a bad thing (IRAS starts computing in 3 months and starts collecting the instalments 3 months later, making it 6 months in total) for people who might have cash flow problems in the meantime to sort out.

Signing Up

Head to http://www.iras.gov.sg/defergiro

Look out for the big red button on the corner, it looks like this

Pump in your SingPass details and you’re done! Remember, the latest date to sign up for deferment is on the 15th of March 2009, so please don’t miss it

Sign up for IRAS Deferment

Sometimes it’s really impressive and scary to think of how the government keeping tabs on all its citizens with SingPass to all the government portals and statutory boards.

Related posts:

1. IRAS Reduces Annual Value for Over 150,000 Homes
2. New Property Tax Computation for Home Owners from January 2011
3. Singapore Budget 2009 – What It Means To Us
4. HDB Additional Housing Grant (AHG) Increase Firmed Up