20 November 2012

The Ministry of Finance (MOF) has accepted for further review three of the five suggestions on the draft Stamp Duties (Amendment) Bill 2012 received during the public consultation exercise held from 20 September 2012 to 10 October 2012.

Suggestions accepted by the MOF for further review include:

• The deferral of the point of duty on bonds and notes convertible into equity until the actual conversion occurs and the removal of stamp duty on securities over shares in a non-Singapore company.
• Further clarification on stamp duty treatment regarding applications to the Registrar of Titles for subdivision and amalgamation of lots which result in the creation of additional or new common property.
• The definition of “stock” within the Act to be updated or removed.

Those not accepted were in relation to:

• The removal of the qualifying condition that the acquiring company has to be a Singapore company or to provide a provision to allow this condition to be waived at the Minister’s discretion.
• The amendment of the phrase “any property” in Section 22(1) to read as “immovable property, stock and shares” (whichever is applicable).

The draft Stamp Duties (Amendment) Bill 2012 proposed legislation to put into effect the enhancement of the stamp duty concession under the Mergers and Acquisitions (M&A) Scheme announced in Budget 2012, as well as changes arising from the periodic review of the stamp duty tax system to improve legislative clarity or stamp duty administration. Further details on the draft Stamp Duties (Amendment) Bill 2012 can be found here.

Source: Ministry of Finance