Conveyance Directions

Buyer’s Stamp Duty (BSD), Additional Buyer’s Stamp Duty (ABSD) and Seller’s Stamp Duty (SSD) remissions may be applicable to a conveyance direction for the following scenarios if the remission conditions are met::

  1. Where the purchaser(s) directs the vendor to transfer the property to a company that has been incorporated (or to be incorporated) by the purchaser 
  2. Where the purchaser(s) directs the vendor to transfer the property (or any share therein) to another family member 

 

Conditions for Remission

 A. Where the purchaser(s) directs the vendor to transfer the property to a company that has been incorporated (or to be incorporated) by the purchaser

  1. At the point of contract, there is a clear intention that the purchaser wants the property to be transferred to the company incorporated (or to be incorporated) by the purchaser
  2. The conveyance direction is made not more than 2 months after the date of the contract
  3. Full duty has been paid on the contract
  4. No consideration has passed between the purchaser and the company
  5. The purchaser has beneficial interest in more than 50% of the share capital and voting rights in the company
    • from the date of purchase to the date of the issue of the Temporary Occupation Permit (TOP) or the date of issue of the last TOP if there are more than one TOPs issued; or
    • from the date of purchase to the date of the transfer if TOP had already been issued at the time of purchase
  6. Subject to meeting the conditions, the amount of ABSD remitted on the conveyance direction is as follows:
    • For conveyance direction made before 21 Dec 2015, ABSD will be fully remitted.
    • For conveyance direction made on or after 21 Dec 2015, the amount of ABSD remitted on the conveyance direction is up to and cannot be more than the amount of ABSD chargeable and paid on the contract. For example, if the rate of ABSD paid on the contract is “x” % and where “x”% is less than 25%, then the amount of ABSD remitted is “x” % and the ABSD amount payable on the conveyance direction is the difference of 25% and “x”%.
    • The remission of ABSD under this Stamp Duties (Conveyance Directions) (Remission) Rules 2015 does not apply if the company is or is to be incorporated for housing development of the property. Please refer to the remission of ABSD for Sites for Development of Four or Less Residential Units or Sites for Development of Five or More Residential Units.

B. Where the purchaser(s) directs the vendor to transfer the property (or any share therein) to another family member

  1. The conveyance direction is made not more than 2 months after the date of the contract 
  2. Full duty has been paid on the contract 
  3. No consideration has passed between the purchaser and the family member who is a spouse, parent, child or sibling
  4. At least one of the original purchasers remains as the purchaser of the property
  5. Subject to meeting the conditions, the amount of ABSD remitted on the conveyance direction is as follows:
    • For conveyance direction made before 21 Dec 2015, ABSD will be fully remitted.
    • For conveyance direction made on or after 21 Dec 2015, the amount of ABSD remitted cannot be more than the amount of ABSD chargeable and paid on the contract. The amount of ABSD remitted is derived by the following formula:
      •                                                          (X + Y) – Z,
      • where  X is the amount of ABSD chargeable and paid on the contract
      • Y is the amount of ABSD chargeable on the conveyance direction if not for the remission
      • Z is the amount of ABSD chargeable on the contract if all the purchasers named in the conveyance direction were purchasers under the contract
    • Where the amount derived by the formula is zero or negative, there will be no remission of ABSD and the amount of ABSD due and payable on the conveyance direction is “Y”.
    • Where the amount derived by the formula is a positive figure, this amount is remitted on the conveyance direction.

 

How to Apply

  1. For conveyance direction made before 21 Dec 2015 (For Remission of BSD, ABSD and SSD)

    Your legal representative can e-Stamp at the e-Stamping Portal to obtain the remission certificate.
  2. For conveyance direction made on or after 21 Dec 2015
    1. For Remission of BSD and SSD
      • Your legal representative can e-Stamp at the e-Stamping Portal to obtain the remission certificate. 
    2. For Remission of ABSD 
      • To apply for the remission, please submit an online application with the supporting documents via the e-Stamping Portal (select “Apply for Assessment/ Appeal/ Remission” under “Requests”) within 14 days from the date of acquisition. Please proceed to e-stamp the remission of BSD and SSD before applying for the remission of ABSD. In your application, please provide the e-Stamping Document Reference Number for the remission of BSD and SSD.

List of Supporting Documents Required for Application for Remission of ABSD

A. Where the purchaser(s) directs the vendor to transfer the property to a company that has been incorporated (or to be incorporated) by the purchaser

  1. Copy of the Conveyance Direction/ Letter of Authority
  2. Copy of the Option to Purchase/ Sale and Purchase Agreement/ Letter of Award
  3. Copy of the Stamp Certificate showing that full duty has been paid on the Option to Purchase/ Sale and Purchase Agreement
  4. Documents to support that the acquired property was intended for ultimate purchaser. E.g. minutes of meeting, director's resolutions, etc.

B. Where the purchaser(s) directs the vendor to transfer the property (or any share therein) to another family member

  1. Copy of the Conveyance Direction/ Letter of Authority
  2. Copy of the Option to Purchase/ Sale and Purchase Agreement
  3. Documents to support the relationship between the purchaser and the family member. E.g. Marriage Certificate, Birth Certificate, etc.

IRAS may request for more documents in the event that any required documents are omitted in the e-Stamping for the remission of BSD and SSD. 

 

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