16 September 2011
A new edition of the e-Tax Guide, “Imposition of stamp duty on sellers for sale or disposal of residential property (7th edition)” has been issued by IRAS on 15 September 2011.
This Guide explains the circumstances under which seller’s stamp duty (SSD) will apply, how SSD is computed and the procedures for payment.
A recap of the series of events relating to SSD is as follows:
- In February 2010, sellers who bought or acquired residential properties on or after 20 February 2010 and sold or disposed of them within one year of acquisition will be subject to SSD.
- In 30 August 2010, SSD was imposed on residential properties which were bought or acquired on or after 30 August 2010 and sold or disposed of within three years of acquisition.
- Earlier this year on 13 January 2011, the holding period for imposition of SSD on residential properties was extended from three years to four years based on new rates. The new SSD rates apply to residential properties which are bought or acquired on or after 14 January 2011 and sold or disposed of within four years of acquisition.
The amounts of SSD payable are summarised in the table below:
Date of purchase/ acquisition |
Holding Period |
SSD payable |
Between 20 February 2010 and 29 August 2010 (all inclusive) |
Within 1 year | 1% on1st $180,000;
2% on next $180,000; 3% on remainder, of the consideration or value |
More than 1 year | No SSD payable | |
Between 30 August 2010 and 13 January 2011 (all inclusive) | Within 1 year | 1% on 1st $180,000;2% on next $180,000;3% on remainder,
of the consideration or value whichever is higher |
More than 1 year and up to 2 years | 0.67% on 1st $180,000;1.33% on next $180,000;2% on remainder,
of the consideration or value |
|
More than 2 years and up to 3 years | 0.33% on 1st $180,000;0.67% on next $180,000;1% on remainder,
of the consideration or value whichever is higher |
|
More than 3 years | No SSD payable | |
On or after 14 January 2011 | Within 1 year | 16% of consideration or value, whichever is higher |
More than 1 year and up to 2 years | 12% of consideration or value, whichever is higher | |
More than 2 years and up to 3 years | 8% of consideration or value, whichever is higher | |
More than 3 years and up to 4 years | 4% of consideration or value, whichever is higher | |
More than 4 years | No SSD payable |
In addition to new and amended FAQs, the seventh edition of this Guide contains updated information on:
- Properties affected
- Exemptions
- Remission
- SSD Declaration Form.
Full details of the e-Tax Guide can be found here.
Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.