IRAS issues e-Tax Guide, “Stamp Duty: Additional Buyer’s Stamp Duty (ABSD) on Purchase of Residential Properties – Revised Edition”

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17 January 2013

On 11 January 2013, the Inland Revenue Authority of Singapore (IRAS) issued the e-Tax Guide, “Stamp Duty: Additional Buyer’s Stamp Duty (ABSD) on Purchase of Residential Properties – Revised Edition”

This revised edition, which replaces the earlier editions, contain guidance on:

• The introduction of Additional Buyer’s Stamp Duty (ABSD) from 8 December 2011, which is payable on the purchase or acquisition of private residential properties

• Further changes as to how ABSD applies from 12 January 2013, and

• Circumstances under which the ABSD will apply, how ABSD is computed and the procedures for paying ABSD.

Buyers Stamp Duty (BSD) continues to be payable by all property buyers. The ABSD is payable by affected buyers at fixed rates on the actual price paid or market value of the property, whichever is the higher.

BSD remains at:

• 1% on first $180,000

• 2% on next $180,000

• 3% on the remainder,

for all category of buyers.

The ABSD rates from 8 December 2011 to 11 January 2013/from 12 January 2013 onwards are as follows:

• FR and entities buying any residential property: 10%/15%
• SPR buying first residential property: Nil/5%
• SPR buying second and subsequent residential property: 3%/10%
• SC buying first residential property: Nil/Nil
• SC buying second residential property: Nil/7%
• SC buying third and subsequent residential property: 3%/10%

The old ABSD rates apply to Contracts or Agreements (whichever is earlier), or Documents of Transfer, dated on or after 8 December 2011, but before 12 January 2013. The new ABSD rates will apply to Contracts or Agreements (whichever is earlier), or Documents of Transfer, dated on or after 12 January 2013.

Where an Option To Purchase has been granted on and before 11 January 2013 and exercised thereafter on or before 1 February 2013 without any extension of the option validity period, the old ABSD rates may apply subject to approval for remission by IRAS.

For more details, please see the e-Tax Guide on the IRAS’s website.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit http://www.iras.gov.sg for more information.