The Additional Buyer Stamp Duty was introduced in 2011 as a cooling measure to slow the growth of the property market and further revised in 2013. This article aims to cover what is relevant in the current(11 May 2016) market.
2.What is Buyer Stamp Duty and Additional Buyer Stamp Duty?
Buyer’s Stamp Duty is tax payable on the acceptance of Option to Purchase(OTP)/Sale & Purchase Agreements(S&P). OTP and S&P are documents that are prepared when you buy/sell your property. Stamp Duty is payable on actual price or market price, whichever is higher.
|Purchase Price or Market Value of the Property||BSD Rates|
source : iras.gov.sg
Additional Buyer Stamp Duty is payable for affected buyers. The unaffected buyers are Singapore Citizens buying their first residential property and specific categories of mixed marriages. These are marriages between Singapore Citizen and Singapore Permanent Residents, and Singapore Citizen and Foreigners, where the first residential property is being bought by both; the Singapore Permanent Residents and Foreigners can apply for a remission from having to pay any ABSD. Under the Free Trade Agreement, certain nationalities are accorded the same treatment as Singapore Citizen and would be unaffected buyers in the same way as Singapore Citizen.
|Profile of Buyer||BSD Rates||ABSD Rates from 8 Dec 2011 to 11 Jan 2013||ABSD Rates from 12 Jan 2013|
|Singapore Citizens (SC)1 buying first residential property||1% on first $180,000
2% on next $180,000
3% for the remainder
|Not applicable||Not applicable|
|SC1 buying second residential property||Not applicable||7%|
|SC1 buying third and subsequent residential property||3%||10%|
|Singapore Permanent Residents (SPR)1 buying first residential property||Not applicable||5%|
|SPR1 buying second and subsequent residential property||3%||10%|
|Foreigners (FR) and entities2 buying any residential property||10%||15%|
source : iras.gov.sg
3. When is Additional Buyer Stamp Duty/Buyer Stamp Duty payable?
Unlike painting services, Buyer Stamp Duty is mandated to be paid within 14 days of signing OTP and S&P if it is signed within Singapore, or 30 days if OTP and S&P is signed outside of Singapore. In the event of absence of OTP and S&P, date of transfer will be used.
Penalties will be imposed on late taxpayers. A demand note will be issued to tax payer who did not pay within the stipulated time frame. For delays that are not exceeding 3 months, a maximum penalty fee of $10 or an amount equal to the duty payable, whichever is greater, will be imposed for late payments not exceeding 3 months. For delays that are exceeding 3 months, a penalty of $25 or 4 times of the duty payable, whichever is greater, will be imposed for late payments exceeding 3 months.
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