Scope of Additional Buyer Stamp Duty (ABSD)

On this page:

• Properties to be included in the Count of Properties Owned 
• Manner of Property Acquisition / Transfer  
• Purchase of Multiple Properties in One Transaction 
• Transfer of Partial Interest Amongst Co-owners 
• Distribution of property to the beneficiary in a deceased’s estate

Properties to be included in the Count of Properties Owned

• Count from Date of Contract or Agreement

The property is to be included in the count of properties owned by a person if there is already a Contract or Agreement to purchase the property even though the property has not been legally transferred to him yet.  This would include the purchase of an uncompleted unit from the developer whereby the Sale & Purchase Agreement has been signed.  Similarly, the property is to be excluded from the count of properties owned by a person if there is already a Contract or Agreement to sell his property*.

* When the buyer has exercised his option to buy the property.

• Include All Residential Properties (Wholly or Partly Residential)

(a)  Buildings units (including those under construction)

Where the permitted use* at the point of purchase is residential, ABSD will be payable.

 
* Permitted use means :-
(a) A use permitted by a Written Permission given under section 14(4) of Planning Act other than that given for a period of 10 years or less ie.exclude temporary permission granted by the Competent Authorities for change of use;
(b) A use authorised by a notification under section 21(6) of Planning Act; or
(c) Such use, being an existing use of the building or part thereof and not being the subject of a written permission given under section 14 of the Planning Act or a notification under section 21(6) of that Act, was a use to which the building or part thereof was put on 1st February 1960, and the building or part thereof has not been put to any other use since that date.

To find out the permitted use of a property, you may:

(a) Approach the developer or the property owner for the latest Written Permission (WP) and the plans approved under the WP;

(b) Check the approved use via URA’s Electronic Development Register (free). This is an electronic repository for information on all Written Permissions granted or rejected by URA from 1995;

(c) Submit an Enquiry on Approved Use of Premises at URA e-Services portal. There is a search fee of $50 per property unit in a building; or

(d) Apply to URA for a Requisition for Planning Records (using Form DC15). There is a search fee of $100 per record and a document fee of $25 for each copy of approved plan.

(b)  Vacant Land or entire building on land with Master Plan zonings as shown in Table 1

For land zoned 'Residential', or 'Residential with Commercial at First Storey', or 'Commercial & Residential', or 'Residential/ Institutional' or 'White'; ABSD will be payable.  Please refer to Table 1 below for application of ABSD. However, ABSD remission may apply to development sites subject  to conditions.

Table 1

• Full Count for Partial Ownership and Joint Ownership

As long as a person 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. 

• Exclude Properties Gazetted for Compulsory Acquisition

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

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Manner of Property Acquisition / Transfer

The most common manner of property acquisition is by way of direct purchase. Properties may also be acquired or transferred in the following manner : -

• Via Gift, Release, Settlement;
• Via Declaration of Trust where the beneficial interest in the property passes to the beneficiary;
• Via Letter of Authority
• Via Exchange

All the above manner of property acquisition will similarly be subject to ABSD depending on the profile of the transferee, beneficiary and the intended transferee.

For example, if a property is bought by a SC who holds the property in trust for a beneficiary who is a foreigner, the ABSD rate of 15% applies based on the profile of the beneficiary.

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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. The buyer may choose any one of the multiple properties to include in the property count that is not subject to the ABSD or subject to a lower ABSD rate.

For example, if a SC who does not own any property decides to purchase two properties in one contract, he may choose any one of the units that is not subject to the ABSD.

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Transfer of Partial Interest Amongst Co-owners

Where the owner already owns a partial interest in a property, the ABSD rate applicable for the acquisition of additional interest in the same property will depend on the number of properties he already owns at the time of the acquisition.

Hence if a SC only owns a partial interest in one property, his acquisition of additional share in the same property would not be subject to ABSD.  If he already owns partial interests in both property A and B, his acquisition of additional share in property A or B or both would be subject to ABSD rate of 7% as he owns 2 properties at the time of the acquisition of additional interest.

If a SPR only owns a partial interest in one property, his acquisition of additional interest in the same property would be subject to ABSD at 5%.  If he already owns partial interests in both property A and B, his acquisition of additional share in property A or B or both would be subject to ABSD rate of 10% as he owns 2 properties at the time of the acquisition of additional interest.

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