A Complete Guide to Property Stamp Duty For Home Buyers

Calculating your taxes can be a headache and this is no exception when buying a property. Buying a property may not be a financial walk in the park - but it can be simple with the right information.

A home buyer has to bear a whole slew of cost and fees! In addition to that, there are associated taxes also known as the Property Stamp Duty, payable to Inland Revenue Authority of Singapore (IRAS). To save you all the hair-pulling, here is all you need to know about the Buyer’s Stamp Duty (BSD) and Additional Buyer’s Stamp Duty (ABSD)!

Buyer’s Stamp Duties

1. Calculation of BSD and ABSD

BSD is a tax levied on all property purchases, for residential, commercial and industrial properties in Singapore. The payable amount is based on whichever is higher:

• Your property’s purchase price (as stated in the signed sale and purchase agreement).
• The market value of your property (obtained from valuation reports of the property).

The current BSD rates as of February 2018 are:

Purchase Price/ Market Value

Rates for Residential Properties

Rates for Non-Residential Properties

First $180,000

1%

1%

Next $180,000

2%

2%

Next $640,000

3%

3%

Remainder

4%

3%

Similar to BSD, the payable amount for ABSD is based on the property’s purchase price or the market value of the property, whichever is higher in value. However, the ABSD rates are dependent on the residency status of the buyer. Singapore citizens do not have to worry about footing the extra cost for their first property! The additional buyer stamp taxes are only applicable to Singapore Permanent Residents (SPR), foreigners and corporate entities.

The current ASBD rates as of July 2018 are:

Residency Status

ASBD Rates For First Property

Singapore Citizen (SC)

0%

Singapore Permanent Resident (SPR)

5%

Foreigners Buying Any Residential Properties

20%

Entities Buying Any Residential properties

25%

Do note that the ABSD rates are higher for SC and SPR buying their second property onwards.

2. Paying For BSD And ABSD

The deadline for both BSD and ABSD payments is 14 days after the execution of the sale. Do take note that payment cannot be made in instalments! Any delay in payment will result in a penalty:

• $10 or an amount equal to the duty payable (whichever is higher), for late payments not exceeding three months
• $25 or four times of the duty payable (whichever is higher), for late payments exceeding three months

Modes of Payment:

Accepted Payment Methods

Details

Internet Banking Fund Transfer/ eNETs

Take note that each fund transfer can only be for one Document Reference Number.

Cheque or Cashier’s Order

Print the payment slip from the e-Stamping Portal and mail your cheque with the payment slip to the address on the slip.

Cash

SingPost Service Bureaus (at the Novena, Raffles Place, Shenton Way and Chinatown branches). However, you will have to pay an application fee based on the service requested.

3. Exemption From ABSD For Purchases of Additional Properties

Scenarios where you do not have to pay ABSD when buying additional properties include:

• Entering an agreement or contract to sell your current home before purchasing a new residential property.
• Foreigners with Free Trade Agreement (FTAs) do not have to ABSD. The countries under the FTAs include residents of Iceland, Liechtenstein, Norway, Switzerland and the United States of America.
• Decoupling of spouses who jointly own a residential property.

Just bought your first home and thinking of ways to spice your space up? Here are some of the best interior designs to take inspiration from! If you are looking at buying a resale flat, here are some cautionary steps you have to take before deciding if the resale flat is right for you!

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