OUE TWIN PEAKS

 

What is Stamp Duty?

Before we talked about what is Buyer’s Stamp Duty (BSD) In Singapore, let us brief understanding of what is a Stamp Duty. Stamp duty is a Tax on documents relating to the purchase of a property.

It is to be paid by buyer within 14 days after the date of documents (e.g. Sale & Purchase Agreement) if the document is signed in Singapore.

If the document is signed overseas, it has to be paid within 30 days after date of its receipt in Singapore.

Stamp Duty is to be paid to IRAS (Inland Revenue Authority of Singapore).

So what is Buyer’s Stamp Duty (BSD)?

Buyer’s Stamp Duty is tax paid on the acceptance to Option to Purchase (OTP)/ Sale & Purchase Agreements (S&P). These are documents (OTP or S&P) that are prepared and signed when you purchase a property.

The buyer is responsible for paying Buyer’s Stamp Duty. Stamp Duty will be computed on the purchase price.

ADDITIONAL BUYER STAMP DUTY (ABSD)

It is a tax payable when you purchase or acquire a residential property i.e. applicable to both HDB flats and Private Properties.

The rate that you need to pay depends on your nationality (and/or your PR status).

It is to be paid by buyer within 14 days after the date of documents (e.g. Sale & Purchase Agreement) if the document is signed in Singapore.

If the document is signed overseas, it has to be paid within 30 days after date of its receipt in Singapore. Stamp Duty is to be paid to IRAS (Inland Revenue Authority of Singapore).

Determining ABSD Liability

The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the property:
A. Whether the buyer is an individual or an entity
B. The residency status of the buyer and
C. The count of residential properties owned by the buyer

Date of Purchase or Acquisition refers to

  1. Date of exercise of Option to Purchase or
  2. Date of Sale & Purchase Agreement or
  3. Date of transfer where (1) and (2) are not available nor applicable

A. Whether the Buyer is an Individual or an Entity

An entity means a person who is not an individual. It includes the following:

  • An unincorporated association
  • A trustee for a collective investment scheme when acting in that capacity
  • A trustee-manager for a business trust when acting in that capacity
  • The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property

If a property is jointly purchased by buyers of different profiles, the profile with the highest ABSD rate will apply.

If A purchases a residential property to be held on trust for the beneficial owner B, ABSD is charged based on the profile of the beneficial owner, B.

B. The Residency Status of the Buyer

If a buyer has applied for Singapore Citizenship or Singapore Permanent Residency, he must have obtained the formal approval from the Immigration and Checkpoint Authority (ICA) for that residency status as at the date of purchase in order to enjoy lower ABSD liability.

C. The Count of Residential Properties Owned by the Buyer

1. Count from Date of Contract or Agreement

If a Contract or an Agreement to purchase the property has been signed, that property is to be included in the count of properties owned by a buyer (A) from the date of acceptance of the agreement, even if it has not been legally transferred to him as he already has an equitable interest in the property.

This also includes the purchase of an uncompleted unit from the developer if the Sale & Purchase Agreement has been signed.

Similarly, the property is to be excluded from the count of properties owned by a buyer (A) if there is already a Contract or an Agreement to sell his property and the new buyer (B) has exercised his option to buy the property.

 

2. Full Count for Partial Ownership and Joint Ownership

As long as a buyer owns any share of interest in a property, that property will be included in the count of properties owned by him. For example, if a person jointly owns a property with his wife, and owns 20% share of another property with his sibling, the number of properties owned by him is counted as two properties.

 

3. Property held on Trust

If A purchases a residential property to be held in trust for the beneficial owner (B), the property will be included as a count for B.

 

4. Purchase of Multiple Properties in One Transaction

Although many properties may be bought under a single contract, each property will be counted as a separate property. Where applicable, the buyer may choose any one of the multiple properties to be subject to ABSD. For example, if a Singapore Citizen who does not own any residential property decides to purchase two residential properties in one contract, he may choose any one of the units to be subject to ABSD.

In the case of a building with multiple units approved by URA but under a single title, ABSD will be based on the number of multiple units.

 

5. Properties acquired to be included in the property count

Apart from properties that have been purchased, properties acquired or transferred by way of gift, release, settlement, declaration of trust (where the beneficial interest of the property passes to the beneficiary), letter of authority and exchange are to be included in the property count.

 

6. HDB Shop with Living Quarters and Shophouse

As a HDB shop with living quarters or a shophouse includes a portion where the permitted use is residential, it will be included as a residential property count.

 

7. Exclusion of Properties Gazetted for Compulsory Acquisition

All residential properties gazetted for compulsory acquisition are to be excluded from the count of properties.

 

8. Exclusion of Properties Located Outside Singapore

All residential properties located outside Singapore are to be excluded.

 

OUE TWIN PEAKS ABSD RATE AND COMPUTATION

OUE TWIN PEAKS ABSD RATE AND COMPUTATION

 

 1  Whether owned wholly, partially or jointly with others.

2 An Entity means a person who is not an individual. It includes the following:

  • An unincorporated association,
  • A trustee for a collective investment scheme when acting in that capacity,
  • A trustee-manager for a business trust when acting in that capacity
  • The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property.

3  BSD and ABSD are to be rounded down to the nearest dollar.

 

OUE TWIN PEAKS BUYER STAMP DUTY AND ADDITIONAL BUYER STAMP DUTY

OUE TWIN PEAKS BUYER STAMP DUTY AND ADDITIONAL BUYER STAMP DUTY

 

 

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