All You Need To Know About Additional Buyer’s Stamp Duty

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The Singaporean Government has implemented the Additional Buyer’s Stamp Duty or ABSD wherein it is a measure used to change where the pricing of properties are heading to. The latest version was implemented in January 2013. The ABSD will be paid by people who purchase a residential property.

            According to the Free Trade Agreements, the nationals, as well as the permanent residents of Singapore, will have the same tax similar to what the Singaporean citizens are paying. However, the rate for foreigners has increased by 15% since the latest ABSD version was implemented.

The Buyer’s Stamp Duty

            This is a tax applied to documents associated with purchasing a property. This should be paid by the buyer within 14 days upon signing the Sale and Purchase Agreement. On the first purchase, it will be S$180,000 which is 1%, the second purchase will be 2% at S$180,000, and the succeeding purchases will be 3% for any transactions below S$1 million and 4% for above S$1 million transacted price.

            The Buyer’s Stamp Duty is only applicable to any property buyers no matter what their nationality is. They can be Singapore Citizens or Singapore Permanent Resident, and they can be foreigners. All of these buyers are required to pay the Buyer’s Stamp Duty whenever there is a sale of a certain property.

The Seller’s Stamp Duty

            This was introduced in early 2010 were the sellers who bought residential properties on or before February 20, 2010, and have sold them within the holding period. New revisions were made in March of 2017. This was initially a part of the measures that were implemented to address the issues with regards to the increase of the property price.

As long as the said property is sold within the holding period, the Seller’s Stamp Duty is payable. The Seller’s Stamp Duty can be paid within 14 days upon the date of the Contract.

What Is A Remission?

            Remission is when a married couple is planning to buy their first HDB flat or maybe an Executive Condo. If one of them is a Singapore Citizen, they would be able to apply for a waiver of ABSD. 5% ABSD remission is applicable when one of them is a permanent resident of the country.

When Is A Refund Applicable?

            Once a Temporary Occupation Permit for the second property is obtained and one of the applicants is a citizen, they would be able to apply for an ABSD refund if for example their first property is sold within 6 months.