H
hesed555
New Member
Currently, for foreigners buying private residential property in Singapore, there will be an additional 10% buyers stamp duty imposed on top of the normal 3% stamp duty.
Take note that there are 5 countries that are not affected by the additional buyer stamp duty (ABSD) when purchasing property in Singapore.
Americans
Swiss
Liechtenstein
Norway
Iceland
This is due to the free trade agreement with Singapore.
For citizens of the five following countries, they will only need to pay additional 3% stamp duty from their third private residential property.
Further details are given below:
Buyer Stamp Duty
Starting 8 December 2011, affected buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD).
Affected Buyers
a) Foreigners and non-individuals
b) Singapore Permanent Residents (PR) who already own 1 or more residential properties, whether owned wholly, partially, or jointly with others
c) Singapore Citizens (SC) who already own 2 or more residential properties, whether owned wholly, partially, or jointly with others
The new ABSD is payable by affected buyers at fixed rates on the actual price paid or market value of the property whichever is the higher.
The ABSD rate will be 10% for (a),and 3% for (b) and (c),on the total price or market value of the property.
BSD continues to be payable by all property buyers at unchanged rates.
The ABSD will be imposed over and above the current Buyer's Stamp Duty, which are 1 per cent on the first $180,000 of purchase consideration or market value of the property (whichever is higher),2 per cent on the next $180,000 and 3 per cent for the remainder.
For example, if two Singapore citizens were to buy a property together, the 3% ABSD will apply if one of the buyers owned two or more residential properties. If a PR and Singapore citizen bought together, the ABSD would apply if the PR already owned one residential property.
When is ABSD Payable
Additional Buyer’s Stamp Duty (ABSD),like the normal buyer’s stamp duty (BSD),is payable within 14 days of :
(i) Date of exercise of Option to Purchase (OTP) or Contract; or
(ii) Date of Sale & Purchase Agreement (where no OTP is granted); or
(iii) Date of transfer where (i) and (ii) are not available nor applicable
Administrative Procedures
Date of Stamping and Payment Due Date
A document is considered to be duly stamped only when stamp duty is fully paid. The full amounts of BSD and ABSD must be paid within 14 days of the Contract or Agreement or Transfer, whichever is the earliest. Where the document is executed overseas, BSD and ABSD must be paid within 30 days of the receipt of the Document in Singapore.
Stamping Procedures
Prior to 15 December 2011, ABSD can be paid by submitting a copy of the document to the Commissioner of Stamp Duties, together with the cheque for the total stamp duty payment (both BSD and ABSD),and a duly signed ABSD for Residential Properties Declaration Form (37 KB). Stamp certificate will be mailed within 5 working days after the cheque is cleared.
From 15 December 2011 onwards, e-stamping for ABSD will be available at the e-Stamping website under the new form 'Sale and Purchase of Immovable Property (With Additional Buyer’s Stamp Duty)'. The form is located under the ‘Sale & Purchase of Immovable Properties’ section in the e-Stamping website. With the e-Stamping service, you no longer need to submit your documents to IRAS for stamping and payment of ABSD.
ABSD Declaration Form
With effect from 8 December 2011, all buyers of residential properties (except non individuals/ corporate entities) are required to fill in an ABSD for Residential Properties Declaration Form (37 KB),to be witnessed by their lawyers.
The completion of this form is mandatory for:
OTP granted before 8 December 2011 and exercised on and before 28 December 2011.
Contract or Sale & Purchase Agreement (whichever is earlier) dated on or after 8 December 2011
Transfer document dated on or after 8 December 2011 if there is no OTP granted nor Contract nor Agreement.
Law firms are advised to retain the original declaration forms. These forms need not be submitted to IRAS, but IRAS may request for them for audit purposes. If the buyers are liable to pay ABSD, law firms are to fax a copy of the completed declaration form to IRAS at Fax no. 6351 3694.
Implications of Non-payment of ABSD
If the buyer or transferee is liable but fails to pay ABSD, the document is considered not duly stamped. Non-stamping of document without any lawful excuse is an offence.
Audit checks will be conducted. If IRAS discovers any case of unpaid ABSD, it would recover the unpaid duty with penalties imposed. Under the Stamp Duties Act, a penalty of 4 times the amount of unpaid duty can be imposed.
Take note that there are 5 countries that are not affected by the additional buyer stamp duty (ABSD) when purchasing property in Singapore.
Americans
Swiss
Liechtenstein
Norway
Iceland
This is due to the free trade agreement with Singapore.
For citizens of the five following countries, they will only need to pay additional 3% stamp duty from their third private residential property.
Further details are given below:
Buyer Stamp Duty
Starting 8 December 2011, affected buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD).
Affected Buyers
a) Foreigners and non-individuals
b) Singapore Permanent Residents (PR) who already own 1 or more residential properties, whether owned wholly, partially, or jointly with others
c) Singapore Citizens (SC) who already own 2 or more residential properties, whether owned wholly, partially, or jointly with others
The new ABSD is payable by affected buyers at fixed rates on the actual price paid or market value of the property whichever is the higher.
The ABSD rate will be 10% for (a),and 3% for (b) and (c),on the total price or market value of the property.
BSD continues to be payable by all property buyers at unchanged rates.
The ABSD will be imposed over and above the current Buyer's Stamp Duty, which are 1 per cent on the first $180,000 of purchase consideration or market value of the property (whichever is higher),2 per cent on the next $180,000 and 3 per cent for the remainder.
For example, if two Singapore citizens were to buy a property together, the 3% ABSD will apply if one of the buyers owned two or more residential properties. If a PR and Singapore citizen bought together, the ABSD would apply if the PR already owned one residential property.
When is ABSD Payable
Additional Buyer’s Stamp Duty (ABSD),like the normal buyer’s stamp duty (BSD),is payable within 14 days of :
(i) Date of exercise of Option to Purchase (OTP) or Contract; or
(ii) Date of Sale & Purchase Agreement (where no OTP is granted); or
(iii) Date of transfer where (i) and (ii) are not available nor applicable
Administrative Procedures
Date of Stamping and Payment Due Date
A document is considered to be duly stamped only when stamp duty is fully paid. The full amounts of BSD and ABSD must be paid within 14 days of the Contract or Agreement or Transfer, whichever is the earliest. Where the document is executed overseas, BSD and ABSD must be paid within 30 days of the receipt of the Document in Singapore.
Stamping Procedures
Prior to 15 December 2011, ABSD can be paid by submitting a copy of the document to the Commissioner of Stamp Duties, together with the cheque for the total stamp duty payment (both BSD and ABSD),and a duly signed ABSD for Residential Properties Declaration Form (37 KB). Stamp certificate will be mailed within 5 working days after the cheque is cleared.
From 15 December 2011 onwards, e-stamping for ABSD will be available at the e-Stamping website under the new form 'Sale and Purchase of Immovable Property (With Additional Buyer’s Stamp Duty)'. The form is located under the ‘Sale & Purchase of Immovable Properties’ section in the e-Stamping website. With the e-Stamping service, you no longer need to submit your documents to IRAS for stamping and payment of ABSD.
ABSD Declaration Form
With effect from 8 December 2011, all buyers of residential properties (except non individuals/ corporate entities) are required to fill in an ABSD for Residential Properties Declaration Form (37 KB),to be witnessed by their lawyers.
The completion of this form is mandatory for:
OTP granted before 8 December 2011 and exercised on and before 28 December 2011.
Contract or Sale & Purchase Agreement (whichever is earlier) dated on or after 8 December 2011
Transfer document dated on or after 8 December 2011 if there is no OTP granted nor Contract nor Agreement.
Law firms are advised to retain the original declaration forms. These forms need not be submitted to IRAS, but IRAS may request for them for audit purposes. If the buyers are liable to pay ABSD, law firms are to fax a copy of the completed declaration form to IRAS at Fax no. 6351 3694.
Implications of Non-payment of ABSD
If the buyer or transferee is liable but fails to pay ABSD, the document is considered not duly stamped. Non-stamping of document without any lawful excuse is an offence.
Audit checks will be conducted. If IRAS discovers any case of unpaid ABSD, it would recover the unpaid duty with penalties imposed. Under the Stamp Duties Act, a penalty of 4 times the amount of unpaid duty can be imposed.
