Tag: Additional buyer’s stamp duty

Stamp Duties Act: Rules on Remission of Additional Buyer’s Stamp Duty

On By taxsgIn e-Gazette, Legislative Updates, Stamp Duty

12 April 2013

Additional Buyer’s Stamp Duty (ABSD) is remitted or refunded for buyers under certain scenarios. The following Rules relating to the remission of ABSD have been introduced under the Stamp Duties Act (Chapter 312):

1. Stamp Duties (Free Trade Agreements) (Remission of ABSD) Rules 2013

The Rules are deemed to come into operation from 12th January 2013 and cover:

  • Citation and commencement
  • Definitions
  • Remission of ABSD where buyer or any joint buyer is qualifying foreigner
  • Rules subject to other Rules

2. Stamp Duties (HDB Flats, HUDC Flats and Executive Condominium Units) (Remission of ABSD) Rules 2013

The Rules are deemed to come into operation on 12th January 2013 and cover:

  • Citation and commencement
  • Definitions
  • Remission of ABSD for instruments relating to HDB flats and HUDC flats
  • Remission of ABSD for instruments relating to executive condominium units
  • Prescribed amount of ABSD

3. Stamp Duties (Spouses) (Remission of ABSD) Rules 2013

The Rules are deemed to come into operation on 12th January 2013 and cover:

  • Citation and commencement
  • Definitions
  • Remission of ABSD where joint parties are spouses both of whom do not own property
  • Remission of ABSD where joint parties are spouses either of whom owns one property

4. Stamp Duties (Transfer of Interest in Property which Buyer has Interest) (Remission of ABSD) Rules 2013

The Rules are deemed to come into operation on 12th January 2013 and cover:

  • Citation and commencement
  • Definitions
  • Remission of ABSD
  • Circumstances where rule 3 is inapplicable
  • Rules subject to other Rules

The above Rules were made on 3 April 2013 and first published in the Government Gazette, Electronic Edition, on 10 April 2013.

Source: e-Gazette

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

On By taxsgIn Latest Tax News, Stamp Duty

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.

IRAS updates guide on “Additional Buyer’s Stamp Duty (ABSD) on Purchase of Residential Properties (Fourth Edition)”

On By taxsgIn Latest Tax News, Stamp Duty

13 June 2012

An updated guide on “Additional Buyer’s Stamp Duty (ABSD) on Purchase of Residential Properties” has been issued by IRAS on 11 June 2012.

Changes in the fourth edition consist of:

  • Guidelines updated on properties to be included in the count of properties subject to ABSD in relation to both existing buildings and buildings under construction as well as for vacant land (para 3.2)
  • New information inserted on lease extension premium for development sites with five or more residential units (para 10.4)
  • Additions and replacements to the Frequently Asked Questions (FAQs) on types of property subject to ABSD, ABSD applicable to the lease extension premium paid to the State as well as remissions applicable to industrial buildings slated for redevelopment on land which has been zoned as ‘residential’.

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

Stamp Duties Act (Amendment of First Schedule) Notification 2012 deemed to have come into operation on 8 December 2011

On By taxsgIn e-Gazette, Legislative Updates

30 March 2012

The Stamp Duties Act (Amendment of First Schedule) Notification 2012, published on 29 March 2012, is deemed to have come into operation on 8 December 2011.

The Notification amends the First Schedule to the Stamp Duties Act, with the following:

  • Definition of “Singapore citizen owning 2 properties” inserted (Article 3, para (1))
  • Definition of ‘‘Singapore permanent resident owning one property” inserted (Article 3, para (1))
  • Replacement of paragraph  (2)(a) with ‘‘a Singapore citizen owning 2 properties, a Singapore citizen owning 2 or more properties, a Singapore permanent resident not owning property, a Singapore permanent resident  owning one property,’’;
  • New paragraph 4 which clarifies the amount of consideration, value and number of residential property being conveyed, assigned or transferred.
  • New paragraph 5 which gives the conditions on sale of residential property, whether or not any other type of property is also conveyed, transferred or assigned under the same instrument
  • Scenarios where paragraph 5 does not apply (para 6)
  • Definition of “relevant individual” inserted (para 7)
  • New paragraph 8 which states that in determining  if a person beneficially owns (whether  alone or jointly or in common with another) an estate or interest in any number of residential properties situated within Singapore, any ownership of property that is the subject of a notification under section 5 of the Land Acquisition Act (Cap. 152) shall be disregarded.

The First Schedule relates to “Instruments Chargeable with Stamp Duty”.

Source: e-Gazette

IRAS updates guide to Additional Buyer’s Stamp Duty (ABSD) on Purchase of Residential Properties (2nd Edition)

On By taxsgIn Latest Tax News, Stamp Duty

19 January 2012

The second edition of the e-Tax Guide, “Additional Buyer’s Stamp Duty (ABSD) on Purchase of Residential Properties”, have been published by IRAS on 12 January 2012.

The changes to the revised edition relate to paragraphs:

  • 2.2(a) – ‘Affected buyers: Foreigners and non-individuals’ where the wording ‘companies, partnership and societies’ have been replaced with ‘and non-individuals’.
  • 2.4 – Effective date of implementation of  ABSD
  • 3.4 – New information on properties excluded from count of properties gazetted for compulsory acquisition
  • 7 – New information on transfer of partial interest amongst co-owners
  • 10.3 – Additional information on Free Trade Agreements
  • 10.4 – Additional information on developer’s eligibility for ABSD remission for development sites with 5 or more residential units
  • 10.5 – Additional information on development sites with 4 or less units
  • 10.6 – New paragraph on purchase of land by developer for development by a related entity
  • 10.7 – New paragraph on amalgamation of land for development by developers
  • 10.8 – Treatment for purchase of properties during the transitional period
  • 11.3 – ABSD Declaration Form
  • Frequently Asked Questions
  • Annexes – Annex B – Replaced with ‘Letter of Undertaking – Remission of ABSD for Residential Land (With 5 or More Residential  Units)’, New Annex C  –  Letter of Undertaking – Remission of ABSD for Residential Land (With 4 or Less Residential Units) and Annex D – ABSD Declaration Form.

For the full e-Tax Guide, please click here.

More details on the ABSD can be found here.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.