17 January 2013

On 11 January 2013, the Singapore Government announced that a seller’s stamp duty (SSD) will be imposed on industrial properties (industrial SSD) which are bought or acquired on and after 12 January 2013 and sold or disposed of within three years.

The Inland Revenue Authority of Singapore (IRAS) has since issued an e-Tax Guide, “Stamp Duty: Seller’s Stamp Duty on Industrial Properties” to explain the circumstances under which SSD on industrial properties will apply, how SSD is computed and the procedures for paying SSD.

The amount of SSD payable is computed based on date of purchase/acquisition or date of change of zoning/use on or after 12 January 2013 on the following scale:

• Up to 1 year: 15% of consideration or market value, whichever is higher
• More than 1 year and up to 2 years: 10% of consideration or market value, whichever is higher
• More than 2 years and up to 3 years: 5% of consideration or market value, whichever is higher
• More than 3 years: No SSD payable

Where there is a change in zoning in the Master Plan or change of use on or after 12 January 2013 to industrial zones/uses, the date of rezoning or change of use will be taken to be the date of acquisition for the purpose of imposing SSD.

The existing SSD on residential properties remains unchanged.

For more details, please refer to 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.