STAMP DUTY FOR PROPERTY

STAMP DUTY FOR PROPERTY

Who Should Pay Stamp Duty

Check the terms of the document (e.g. tenancy agreement) to determine who is contractually required to pay the Stamp Duty. When the terms do not state who is liable, the party to pay Stamp Duty will follow that as specified in the Third Schedule of the Stamp Duties Act. Click here to know more Who Should Pay Stamp Duty

Stamp Duty Basics for Property

Stamp Duty is a tax on dutiable documents relating to any immovable property (“property”) in Singapore and any stock or shares.

Dutiable Documents

Dutiable documents include both the physical and electronic versions of the following 1. Lease / Tenancy Agreements for Properties These are documents signed when you rent a property. Stamp Duty is calculated on the actual rent or market rent, whichever is higher.
2. Transfer Documents for Properties There are three types of duties payable on the sale, purchase, acquisition or disposal of properties in Singapore:
  • Buyer’s Stamp Duty (BSD)
  • Additional Buyer’s Stamp Duty (ABSD)
  • Seller’s Stamp Duty (SSD)

BUYING OR ACQUIRING PROPERTY

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.
BUYING OR ACQUIRING PROPERTY
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)

Additional Buyer’s Stamp Duty (ABSD)

The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the residential property:
  • Whether the buyer is an individual or an entity
  • The residency status of the buyer and
  • The count of residential properties owned by the buyer
  • To learn more on ABSD, click here Additional Buyer’s Stamp Duty (ABSD)

SELLING OR DISPOSING OF PROPERTY

SELLING OR DISPOSING OF PROPERTY

Seller’s Stamp Duty (SSD) for Residential Property

SSD is payable on all residential properties and residential lands that are bought on or after 20 Feb 2010 and sold within the holding period.

Determining SSD Liability

Whether SSD is payable and the rate will depend on:
A. The type of property sold or disposed
B. The date of purchase or acquisition
C. The date of sale or disposal
D. Rates applicable To learn more on , click here Seller’s Stamp Duty (SSD) for Residential Property
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