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Urban Development

Integrated urban planning and infrastructure development to support sustainable cities and communities across the Netherlands.

Sections

a) Buyer’s Stamp Duty (BSD)

  • Applicable to all property buyers.
  • Calculated based on the purchase price or market value of the property, whichever is higher.
  • Rates for BSD (as of February 15, 2023):
    • First $180,000: 1%
    • Next $180,000: 2%
    • Next $640,000: 3%
    • Next $500,000: 4%
    • Amount exceeding $1.5 million: 5%
    • Amount exceeding $3 million: 6% (for residential properties only).

b) Additional Buyer’s Stamp Duty (ABSD)

  • Imposed on certain groups of property buyers, depending on their residency status and the number of properties they own.
  • Rates for ABSD (as of April 27, 2023):
    • Singapore Citizens (SC):
      • 1st property: 0%
      • 2nd property: 20%
      • 3rd and subsequent properties: 30%
    • Singapore Permanent Residents (PR):
      • 1st property: 5%
      • 2nd property: 30%
      • 3rd and subsequent properties: 35%
    • Foreigners (FR):
      • All properties: 60%
    • Entities (e.g., companies):
      • All properties: 65%
    • Housing developers: 35% (subject to conditions for remission).

c) Seller’s Stamp Duty (SSD)

  • Applicable to sellers of residential or industrial properties if the property is sold within a specified holding period.
  • Rates for SSD (as of 2023):
    • Residential properties:
      • Sold within 1 year: 12%
      • Sold within 2 years: 8%
      • Sold within 3 years: 4%
      • Sold after 3 years: 0%
    • Industrial properties:
      • Sold within 1 year: 15%
      • Sold within 2 years: 10%
      • Sold within 3 years: 5%
      • Sold after 3 years: 0%

d) Stamp Duty on Leases

  • Applicable to tenancy or lease agreements.
  • Rates for Stamp Duty on Leases:
    • Lease term ≤ 4 years: 0.4% of total rent for the lease period.
    • Lease term > 4 years: 0.4% of 4 times the average annual rent.

e) Stamp Duty on Share Transfers

  • Applicable to the transfer of shares in Singapore-incorporated companies.
  • Rate: 0.2% of the purchase price or market value of the shares, whichever is higher.

3. How to Calculate Stamp Duty

To calculate Stamp Duty, you can use the Stamp Duty Calculator provided by IRAS on their official website. You will need to input details such as the property type, purchase price, and buyer profile (e.g., Singapore Citizen, PR, or foreigner).

4. Payment Procedures

a) When to Pay

  • Stamp Duty must be paid within 14 days from the date of the document if it is signed in Singapore.
  • If the document is signed overseas, payment must be made within 30 days of receiving the document in Singapore.

b) How to Pay

  1. e-Stamping Portal:
    • Log in to the IRAS e-Stamping Portal using your Singpass or CorpPass.
    • Fill in the required details and generate the payment notice.
    • Make payment via the available methods (e.g., GIRO, eNETS, or cheque).
  2. Authorized Service Bureaus:
    • Visit an authorized service bureau to complete the stamping process.
  3. Payment Methods:
    • Online payment via eNETS.
    • GIRO (for recurring payments).
    • Cheque or cashier’s order (for manual submissions).

5. Penalties for Late Payment

Failure to pay Stamp Duty on time may result in penalties:

  • A penalty of $10 or an amount equal to interest at 5% per annum, whichever is higher.
  • If the delay exceeds 3 months, the penalty increases to 4 times the amount of unpaid duty.

6. Exemptions and Remissions

Certain transactions may qualify for exemptions or remissions of Stamp Duty:

  • First-time home buyers: Partial remission of ABSD for Singapore Citizens.
  • Matrimonial property transfers: Exemption for transfers between spouses under specific conditions.
  • Inheritance: No Stamp Duty is payable on properties inherited through a will or intestacy.
  • Housing developers: May qualify for ABSD remission if conditions are met.

7. Practical Considerations

a) Residency Status

Your residency status (Singapore Citizen, PR, or foreigner) significantly impacts the amount of Stamp Duty payable, especially ABSD. Ensure you understand the rates applicable to your situation.

b) Property Type

Stamp Duty rates differ for residential, commercial, and industrial properties. Be clear about the property type before calculating your Stamp Duty.

c) Legal Advice

Engage a property lawyer or conveyancing professional to ensure compliance with Stamp Duty regulations and to handle the payment process.

d) Budgeting

Stamp Duty can be a significant cost in property transactions. Factor it into your budget when purchasing or leasing property in Singapore.

8. Resources

  • IRAS Website: https://www.iras.gov.sg
  • Stamp Duty Calculator: Available on the IRAS website.
  • Contact IRAS: For specific queries, you can contact IRAS at +65 6356 7012 or via their online feedback form.

By understanding the regulations, costs, and procedures related to Stamp Duty in Singapore, you can better plan your property transactions and avoid unnecessary penalties. If you need further assistance, feel free to ask!