In Singapore, purchasers, sellers and tenants of any property are required to pay tax known as the Stamp Duty.
There are 2 types of stamp duties applicable to purchasers i.e. the Buyer’s Stamp Duty (BSD) and the Additional Buyer’s Stamp Duty (ABSD), which is applicable to certain groups of buyers.
Buyer’s Stamp Duty
The Buyer Stamp Duty (BSD) is calculated based on the purchase price or market value, whichever is higher.
|Purchase Price or Market Value of the Residential Property (RP)||BSD Rates before 20th Feb 2018||BSD Rates on/after 20th Feb 2018|
|Purchase Price or Market Value for Non-Residential Properties||BSD Rates|
if you bought a $2,000,000 residential property, the BSD payable is:
First $180,000 x 1% = $1,800
Next $180,000 x 2% = $3,600
Next $640,000 x 3% = $19,200
Remaining $1,000,000 x 4% = $40,000
Total BSD payable = $1800 + $3600 + $19,200 + $40,000 = $64,600
Additional Buyer’s Stamp Duty
Additional Buyer Stamp Duty (ABSD) is an additional tax applicable to a certain group of buyers.
ABSD is not applicable to the following group of buyers:
- Commercial or industrial properties buyers.
- Singapore Citizens who do not own any Singapore residential properties at the time of their purchase.
- Singapore Citizens who are purchasing HDB flat or Executive Condominium.
For Singapore Citizens,
- If you own 1 residential property in Singapore, the ABSD payable is 12% of Purchase Price or Market Price, whichever is higher.
- If you own 2 or more residential properties in Singapore, ABSD payable is 15% of Purchase Price or Market Price, whichever is higher.
For Singapore Permanent Residents,
- If you currently do not own any residential property in Singapore, ABSD payable is 5% of Purchase Price or Market Price, whichever is higher.
- If you are owning 1 or more residential properties in Singapore, ABSD payable is 15% of Purchase Price or Market Price, whichever is higher.
For Foreigners or Purchasers who are not individuals (Companies)
The ABSD payable is 20% of Purchase Price or Market Price, whichever is higher regardless of the number of Singapore residential property you own at the time of purchase.
For Purchasers who are not individuals (Entities)
The ABSD payable is 25% of Purchase Price or Market Price, whichever is higher regardless of the number of Singapore residential property the entity own at the time of purchase.
SC: Singapore Citizens
SPR: Singapore Permanent Residents
Developers: entities in the business of housing development
(i.e. construction and sale of housing units) with respect to the subject property purchased.
|ABSD Rates from 12 Jan 2013 to 5 Jul 2018
(both dates inclusive)
|ABSD Rates on/after 6 Jul 2018|
|SC buying 1st RP||0%||0%|
|SC buying 2nd RP||7%||12%|
|SC buying ≥ 3rd RP||10%||15%|
|SPR buying 1st RP||5%||5%|
|SPR buying ≥ 2nd RP||10%||15%|
|Foreigners buying any RP||15%||20%|
|Entities buying any RP||15%||25%|
|plus 5% for developers|
ABSD Applicable for 2 Or More Joint Purchasers
For purchases made jointly by 2 or more parties, the higher ABSD will be imposed.
Example 1: If a Singaporean wish to purchase a property together with a foreigner, the ABSD payable will be 20%.
Example 2: If two Singaporeans jointly purchase a property with one of them already own 2 residential properties at the time of purchase, the ABSD payable will be 15%.
Remission of ABSD
Married Couples (with at least 1 Singaporean) can apply for a refund of ABSD if they intend to dispose (sell off) their current property to buy a new property.
Neither party of the couple must possess any other property at the time of their purchase.
The timeline to sell off their current property is within 6 months after their new property has TOP or sales completion date for resale
When are BSD and ABSD Payable?
Purchasers must pay both BSD and ABSD:
- within 14 days from date of execution of the Sales & Purchase Agreement/Option to Purchase if it is signed in Singapore or:
- within 30 days of its receipt in Singapore if it is signed overseas
Can I use my CPF to pay for BSD and ABSD?
Both the ABSD and BSD can be reimbursed from the buyer’s CPF if you wish to do so. However, you will have take note of the following:
- You can only use funds from you Ordinary Account for payment.
- If you purchasing a second property using CPF, you must set aside the prevailing Basic Retirement Sum (BRS). Only monies in excess of the current BRS remaining in your Ordinary Account can be used.
- For completed projects, it is in a form of reimbursement, meaning that you first pay up in cash, and receive the amount paid at a later date from your CPF. For purchase of a property that is still under construction, stamp duties can be paid directly from CPF.
Besides Stamp Duties, funds in the Ordinary Account can also be used to pay
- Legal Fees
- Purchase Price
- Monthly repayments of bank loan
Seller’s Stamp Duty
Seller’s Stamp Duty (SSD) is only applicable to private residential properties and industrial properties which a property is sold within a stipulated holding period.
It is calculated from the date that you have exercised your Option to Purchase/Sales & Purchase Agreement to your selling date on the same property.
The selling date refers to the date that your buyer has exercised his/her Option to Purchase.
SSD is calculated based on the selling price or market value, whichever is higher.
|Residential Properties||SSD Rates
from 14 Jan 2011 to 10 Mar 2017
(both dates inclusive)
|SSD Rates on/after 11 Mar 2017|
|SSD Holding Period||Up to 1 year||16%||12%|
|> 1 year and up to 2 years||12%||8%|
|> 2 years and up to 3 years||8%||4%|
|> 3 years and up to 4 years||4%||No SSD payable|
|> 4 years||No SSD payable|
|Industrial Property Holding Period||SSD Rate
(on the actual price or market value, whichever is higher)
|Up to 1 year||15%|
|More than 1 year and up to 2 years||10%|
|More than 2 years and up to 3 years||5%|
|More than 3 years||No SSD payable|
|Average Annual Rent (AAR)2||Lease Duty Rates|
|AAR ≤ $1,000||Exempted|
|AAR > $1,000|
|Lease period ≤ 4 years||0.4% of total rent for the period of the lease|
|Lease period > 4 years or for any indefinite term||0.4% of 4 times the AAR for the period of the lease|
AAR refers to the higher of the average annual contractual or annualised market rent and includes other considerations such as payments for:
- Advertising and Promotion charge
- Furniture / Fittings charge
- Maintenance charge
- Service charge
- Any other charges, excluding GST
If the lease is with premium i.e. lump sum payment, BSD rates apply on the premium.
If there is a rental in addition to the premium, lease duty rates apply on the rental.
If there is a subsequent increase in rental or extension in tenancy period, lease duty is payable on the variation or supplemental agreement document based on the increase in rental or the additional rental for the extended lease period.