Tag: Stamp Duty

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 issues second edition to e-Tax Guide: Stamp duty treatment for the acquisition of multiple properties

On By taxsgIn Latest Tax News, Stamp Duty

25 February 2012

On 22 February 2012, IRAS issued an updated edition of the e-Tax Guide, “Stamp Duty Treatment for the Acquisition of Multiple Properties (Second Edition).

The updates in the Guide relate to substituting the title, “Stamp Duty Treatment for Properties Acquired on an En Bloc or Block Basis” in the first edition with “Stamp Duty Treatment for the Acquisition of Multiple Properties” in this second edition. As a result, the wordings have been paraphrased in paragraphs 1 and 2 of the Guide. A new paragraph 3 on has also been introduced on prima facie indicators that the Commissioner will look principally as indicative of a collective sale and purchase of the multiple properties.

This Guide explains the stamp duty treatment where multiple properties are acquired collectively whereby calculation of the stamp duty will be based on the total purchase price of the multiple properties, provided that there is a single contract for the purchase of the multiple properties or that the purchases of  the multiple properties are dependent and conditional of one another.

More on the e-Tax Guide can be found here.

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

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.

Stamp Duties Act (Amendment of the First Schedule) (No 2) Notification 2011

On By taxsgIn Legislative Updates, Stamp Duty

Following the recent announcements to the  additional buyer’s stamp duty (ABSD) on purchases of residential properties, Article 3 of the First Schedule to the Stamp Duties Act has been amended by the ‘Stamp Duties Act (Amendment of the First Schedule) (No  2) Notification 2011’.

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

This Notification is effective from 8 December 2011.

Source: e-Gazette

Additional Buyer’s Stamp Duty (ABSD) introduced for residential properties

On By taxsgIn Corporate Tax

8 December 2011

An additional round of property measures to moderate investment demand have been announced by the Singapore Government. This is in view of the strong pool of external liquidity and now record-high foreign buying.

An additional Buyer’s Stamp Duty (ABSD) has been imposed over and above the current Buyer’s Stamp Duty (BSD) for the following:

  • Foreigners and non-individuals (companies, partnership and societies) buying any residential property will pay an ABSD of 10%
  • Permanent Residents buying the second and subsequent at 3%, and
  • Singapore Citizens buying the third and subsequent at 3%.

Taking into account the existing BSD, total stamp duty payable on a S$2mil purchase for a foreigner would therefore be S$254,600.

For purchases made jointly by two or more parties (e.g. a Singaporean with a PR, or a PR with a foreigner), the higher applicable ABSD rate will be imposed.

Properties transferred via gifts, inheritance, settlement, trust, letter of authority and exchange will be also subject to ABSD.

Timing of the ABSD Payment  is the same as the BSD.

Reliefs however will be provided for Singaporean-foreigner/PR married couples buying their homes, as well as for qualifying developers and for purchases falling within the scope of Singapore’s international trade agreements.

These measures take effect from 8 December 2011.

More on the details of the ABSD can be found in the IRAS e-Tax Guide.

Source: Inland Revenue Authority of Singapore, Ministry of Finance