There are basically 3 types of stamp duty in Singapore. They are the Buyer Stamp Duty, Addition Buyer Stamp Duty and Seller Stamp Duty.
Buyer Stamp Duty (BSD)
Buyer Stamp Duty is tax paid on documents signed when you buy or acquire property located in Singapore. Buyer Stamp Duty will be computed on the purchase price as stated in the document to be stamped or market value of the property (whichever is the higher amount). Please refer to www.iras.gov.sg for more information.
Buyer Stamp Duty rate for property between $360,000 and 1 million is taxed based on a formula of 3% – $5,400.
Buyer Stamp Duty rate for property above 1 million is taxed on a higher rate based on a formula of 4% – $15,400.
Additional Buyer’s Stamp Duty (ABSD)
Liable buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD). ABSD and BSD are computed on the purchase price as stated in the dutiable document or the market value of the property (whichever is the higher amount). Please refer to www.iras.gov.sg for more information.
Determining ABSD Liability
The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the residential 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
Foreigners Eligible for ABSD Remission under Free Trade Agreements (FTAs)
Under the respective FTAs, Nationals or Permanent Residents of the following countries will be accorded the same Stamp Duty treatment as Singapore Citizens:
- Nationals and Permanent Residents of Iceland, Liechtenstein, Norway or Switzerland
- Nationals of the United States of America
In short, foreigners buying their first residential property in Singapore are treated as Singapore Citizens and exempted from paying ABSD.
Seller’s Stamp Duty (SSD)
SSD is payable on all residential properties and residential lands that are bought on or after 20 Feb 2010 and sold within the holding period. Please refer to www.iras.gov.sg for more information.
Determining SSD Liability
Whether SSD is payable and the rate will depend on:
A. The type of property sold or disposed
B. The date of purchase or acquisition
C. The date of sale or disposal
D. Rates applicable