What is the Duty that I need to pay as a Buyer or Transferee of a Property?
- Buyer’s Stamp Duty (BSD)
- Additional Buyer’s Stamp Duty (ABSD)
- Mortgage Duty
BSD rates of up to 3% is applicable to acquisition of non-residential properties. For residential properties, BSD rates of up to 4% are chargeable. ABSD of up to 30% may also be applicable.
All buyers/ transferees (i.e. individuals, entities, housing developers) of residential properties are required* to fill in an ABSD Declaration Form to be witnessed by their lawyers (if applicable). The form must be retained and submitted to IRAS only upon request.
Buyer’s Stamp Duty (BSD)
BSD is tax paid on documents signed when you buy or acquire property located in Singapore.
Requirement to Pay BSD
You are required to pay BSD for documents executed for the sale and purchase of property located in Singapore. BSD will be computed on the purchase price as stated in the document to be stamped or market value of the property (whichever is the higher amount).
If the benefit is stated in the document to be stamped and is a cash discount (i.e. cash, non-post dated cashier order or cheque) to be given to the purchaser upon execution of the document (and not later), the amount of discount may be deducted from the purchase price to determine what is the amount of consideration for stamp duty purpose. This is provided that the nett price is still reflective of market value.
If the document to be stamped stated a non-cash benefit to be given (e.g. furniture voucher, rental guarantee, car or lucky draw), the value of benefit is not deductible from the purchase price for stamp duty purpose.
If the cash or non- cash benefit is not stated in the document to be stamped, the value of the benefit is also not deductible from the purchase price for stamp duty purpose.
The first instrument executed relating to a sale and purchase is liable to ad valorem duty (i.e. full duty). Subsequent document(s) relating to the same sale transaction are not liable to Stamp Duty. To learn more, click here Buyer’s Stamp Duty (BSD)