Seller's stamp duty (SSD) for residential properties is exempted for sellers/transferors under the following scenarios:–
- Licensed housing developers who are governed under the Housing Developers (Control and Licensing) Act need not pay SSD when selling residential properties developed by them.
- Public authorities in exercising their functions and duties need not pay SSD when selling residential properties, e.g. Housing & Development Board (HDB), Jurong Town Corporation (JTC).
- Residential property owners need not pay SSD when their properties are acquired by the Government under the Land Acquisitions Act.
- Residential property owners need not pay SSD when selling their residential properties due to bankruptcy or involuntary winding up.
- Foreigners need not pay SSD when they have to sell their residential properties as required under the Residential Properties Act.
SSD for residential properties may be remitted for sellers/ transferors under the following scenarios. Application for remission is required by sellers/ transferors.
- Non-licensed developers may be eligible for remission of SSD only if they are registered companies or businesses, and lawfully carrying on the business of housing development.
- For an inherited residential property, SSD may be remitted for the estate of the deceased when the property is passed to the beneficiary by will or by law if the date of acquisition of the property by the deceased was prior to the relevant effective dates of commencement of SSD. Please see the following examples.
- If the transferor, who has since died, had acquired the property before 20 Feb 2010, SSD will not apply to the beneficiary when he sells the property. However, if the transferor, who has since died, had acquired the property on or after 20 Feb 2010, SSD will be payable by the beneficiary when he sells the property within one year from the date of acquisition by the deceased. For example, if Mr A, who died on 26 Feb 2010, had bought a residential property on 20 Feb 2010, would be liable to pay SSD under his estate if his beneficiary sells the property within one year from the date of acquisition by Mr A (deceased).
- In the case where the transferor who has since died, had bought the property between 30 Aug 2010 and 13 January 2011, two-thirds of duty (SSD) will be payable by the beneficiary when he sells the property within the second year of acquisition by the deceased. If the beneficiary sells the property within the third year of acquisition by the deceased, one-third of duty (SSD) will apply.
- In the case where the transferor who has since died, had bought the property on or after 14 January 2011, SSD will be payable by the beneficiary when he sells the property within 4 years of acquisition by the deceased. For example, the beneficiary will have to pay SSD based on a rate of 16% if the disposal is in the first year of the acquisition by the deceased.
- Residential property owners will similarly enjoy remission of SSD if the buyer/ transferee qualifies for remission of buyer's stamp duty under the following remission rules : -
Additional Information for HDB Flat Owners
HDB flat owners may be eligible for remission when they have to return their flats to HDB as a result of re-possession by HDB or under the Selective En-bloc Redevelopment Scheme (SERS). This applies to HDB flat owners who have bought the HDB flats on or after 20 February 2010.
SSD remission also applies to the following categories of HDB flat sellers/ transferors who bought or acquired their flats on or after 30 August 2010 and disposed them thereafter: -
- HDB flat owners whose flats have been identified for SERS but sell their flats in the open market before HDB claims them;
- HDB flat owners who surrender their flats to HDB due to break-up of fiancé/fiancée relationship or annulment of marriage and separation/ divorce within the holding period;
- HDB flat owners who surrender their Lease Buyback Scheme (LBS) flats or studio apartments to HDB.
HDB flat sellers/ transferors who bought their flats between 20 February to 29 August 2010 (both dates inclusive) and dispose them within 1 year holding period in the above three scenarios are not exempted and need to pay SSD.