Singapore Additional Buyer’s Stamp Duty-Company Formation_Trademark Registration_Tax Service - Hong Kong CPA

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Taxation - Singapore

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Singapore Additional Buyer’s Stamp Duty

Answer

On 15 December 2021, the Government announced that ABSD rates will be raised with effect from 16 December 2021, as part of a package of measures to cool the private residential and HDB resale markets.

The ABSD liability will depend on the profile of the buyer as at the date or purchase or acquisition of the residential property

Q：

What is a transitional provision

A：

There is a transitional ABSD remission for residential properties acquired on or after 16 December 2021, such that the old ABSD rates (i.e. the ABSD rates from 6 July 2018 to 15 December 2021), instead of the new ABSD rates (i.e. the ABSD rates on or after 16 December 2021), will apply. For buyers to be eligible for the transitional ABSD remission, all of the following conditions must strictly be met:

(a)	The option to purchase ("OTP") is granted on or before 15 December 2021;
(b)	This OTP is exercised* on or before 5 January 2022 or the date of expiry of the OTP validity period, whichever is the earlier; and
(c)	This OTP is not varied (including any extension of the validity period) on or after 16 December 2021.

This remission is not applicable for Singaporean Citizen or Singapore Permanent Resident buying 1st residential property as there is no change to their ABSD rates.

Q：

What changes for entities and housing developers

A：

All entities will be subject to the new ABSD rate of 35%. Housing developers will continue to be subject to an additional non-remittable ABSD rate of 5% upon stamping. For acquisitions made on or after 16 December 2021, housing developers may apply for remission on the ABSD rate of 35% under the Stamp Duties (Non-licensed Housing Developers) (Remission of ABSD) Rules and the Stamp Duties (Housing Developers) (Remission of ABSD) Rules.

Q：

How to determining ABSD liability

A：

The ABSD liability will depend on the profile of the buyer as at the date or purchase or acquisition of the residential property.
(a) Whether the buyer is an individual or an entity
(b) The profile of the buyer and
(c) The count of residential properties owned by the buyer

Q：

Whether the buyer is an individual or an Entity

A：

An entity means a person who is not an individual. It includes the following:

(a)	An unincorporated association
(b)	A trustee for a collective investment scheme when acting in that capacity
(c)	The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property

If a property is jointly purchased by buyers of different profiles, the profile with the highest ABSD rate will apply on the entire value purchased.
If A purchases a residential property to be held on trust for the beneficial owner B, ABSD is charged based on the profile of the beneficial owner, B.

Q：

The profile of the buyer

A：

The applicable ABSD rate is based on the profile of the buyer on the date of purchase. You must have been granted the Singapore Citizenship status or Singapore Permanent Resident status by the Immigration and Checkpoint Authority (ICA) as at the date of property purchase in order to enjoy lower ABSD liability. The date of issue reflected in the IC collection slip would be taken as when the status was granted.

Q：

The count of residential properties owned by the buyer

A：

Count from date of contract or agreement
Full count for partial ownership and joint ownership
Property held on trust
Purchase of multiple properties in one transaction
Properties acquired to be included in the property count
HDB shop with living quarters and shophouse
Exclusion and properties gazette for compulsory acquisition
Exclusion of properties located outside Singapore

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