Additional Buyer Stamp (ABSD) & Seller Stamp Duty (SSD) Explained

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.

This is the latest rate. (you can find out about the latest ABSD and LTV adjustment here since 5th July 2018)

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.

Additional Buyer Stamp Duty (ABSD)

Q: Many people are very confused for a fact for this mix of spouse. When you have a Singapore Citizen (SC) and a Foreign (FR) Spouse. How much Additional Buyer Stamp Duty you are supposed to pay for your first matrimonial house? Continue reading “Additional Buyer Stamp (ABSD) & Seller Stamp Duty (SSD) Explained” →

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 ;)

IRAS Reduces Annual Value for Over 150,000 Homes

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!

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 :)

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.