Estate Duty has been removed for deaths on and after 15 February 2008.
For deaths before 15 February 2008, Estate Duty is calculated based on whether the deceased died domiciled in Singapore. Generally, Estate Duty is calculated based on the total market value of all Singapore assets.
Estate duty has been removed for deaths on and after 15 Feb 2008.
For deaths before 15 Feb 2008 , the following items are to be considered when calculating estate duty:
Estate Duty is payable on the total market value of:
Land and buildings (immovable property) outside Singapore are not subject to Estate Duty in Singapore.
The following gifts made by the deceased during his lifetime are subject to Estate Duty:
The following gifts made by the deceased during his lifetime are not subject to estate duty upon his death:
Estate Duty is payable on the total market value of all his Singapore immovable and movable assets as at the date of death and exemptions will be given.
If two people pass away on or after 01 Jan 2006, and the later death occurred not more than 24 months after the earlier death, the estate of the later death is entitled to QSR.
Where the order of the two deaths is unknown, the younger person is presumed to have survived the older person and inherited the older person's assets.
Each estate is assessed separately and the exemptions under the Estate Duty Act will apply separately on each assessment.
For all quick succession deaths, a relief of varying amount would be given depending on the time period between the two deaths, as shown in the table below.
6 months or less
100%
More than 6 months but not more than 12 months
75%
More than 12 months but not more than 18 months
50%
More than 18 months but not more than 24 months
25%
More than 24 months
0%
The formula is: A/B x C x P
The following exemptions are listed below:
$9 million*
$600,000*
The excess of $600,000*
Value of gift
For deaths occurring on or after 01 Jan 1999 and before 15 Feb 2008
* The exemption threshold is applicable for a person dying on or after 28 Feb 1996 and before 15 Feb 2008 ** Institutions of a Public Character
For deaths occurring on or after 01 Jan 2005 and before 15 Feb 2008, the amount allowed for funeral expenses is $6,000 or the actual amount expended, whichever is lower.
Debts are allowed for deduction if they are:
Debts are deducted against the value of the asset that is pledged as security. For example, a mortgage loan of a property shall only be deducted against the value of the property regardless of whether the property is exempted from Estate Duty.
After deducting allowable debts, funeral expenses and exemptions, the net value will be taxed based on the following rates:
5%
10%
Simple interest is payable on the unpaid Estate Duty from the date of death to the date of payment.
At any time after the deceased's death, the Executor, the Administrator, or the Accountable Person may estimate the amount of Estate Duty payable and make payment to the Commissioner to prevent further interest from accruing.
From the date 6 months after the date of death to the:
a. date of receipt of an Estate Duty Return without omission of assets; b. date of Notice of Assessment; c. date of full payment of the Estate Duty; or d. expiration of 18 months from the date of death,whichever first occurs.
c. date of full payment of the Estate Duty; or d. expiration of 18 months from the date of death,
whichever first occurs.
From the date 18 months after the date of death to the:
a. date of receipt of an Estate Duty Return without omission of assets; b. date of Notice of Assessment; c. date of full payment of the Estate Duty,whichever first occurs.
a. date of receipt of an Estate Duty Return without omission of assets; b. date of Notice of Assessment; c. date of full payment of the Estate Duty,
*The Commissioner may reduce the interest rate to a rate not less than the prevailing prime lending rate of banks in Singapore, if he is satisfied that there was reasonable cause for:
For deaths occurring on or after 01 Jan 2005 and before 15 Feb 2008, a late payment penalty shall be added if any Estate Duty or interest is not paid in full on or before 30 days after the date of the Notice of Assessment.
Value as at 03 Mar 2006 (Date of Death)
$200,000 150,000 300,000 50,000 250,000
$121,000
$129,000 $129,000
$700,000
$ 94,000
$ 200,000
150,000
300,000
750,000
250,000
$750,000 600,000
$150,000 150,000
$650,000
6,000
$644,000