Sites for Development of Five or More Residential Units

The acquisition of sites by housing developers or their trustees are subject to 40% ABSD of which, 35% ABSD may be remitted upfront subject to conditions. The other 5% ABSD is non-remittable and remains payable within 14 days after the date of acquisition.

It is important for the purchasing entity to decide at the point of purchase whether housing development of the subject property will be undertaken, in order to ascertain the applicable ABSD treatment. Any subsequent change of intention will not be considered for stamp duty purposes. For example, entities who have paid the ABSD rate of 65% will not qualify for the ABSD Housing Developers Remission, even if they fulfil the remission conditions subsequently.

If the site is purchased by a holding company and intended to be transferred to a housing developer incorporated (or to be incorporated) by the holding company to undertake the development by way of a Conveyance Direction, the holding company is subject to 65% ABSD, which may be remitted upfront subject to the conditions in paragraph C below.

Please note that all purchasers/ transferees (including housing developers and trustees for housing developers) are required to complete the ABSD Declaration Form (PDF, 277KB) to be witnessed by their lawyers (if applicable). The completed form need not be submitted to IRAS, unless requested. 

Conditions for remission under the Stamp Duties (Housing Developers) (Remission of ABSD) Rules

A. Where the purchaser/transferee is the housing developer

1. The developer must be a company and a licensed housing developer
2. The developer follows through the intention to develop the housing development which comprises 5 or more units of housing accommodation for sale:
   • Commence housing development on the residential site within 2 years from the date of execution of the instrument¹ ("acquisition date")
   • Complete the housing development and sell all units of housing accommodation in the development within 5 years from the acquisition date
3. The developer submits the following documents to IRAS: -
   • Written undertaking (in the prescribed format) (PDF, 93KB) to comply with all the conditions.
   • A copy of a Qualifying Certificate issued by the Controller of Residential Property, where relevant, and a Housing Developer’s Licence issued by the Controller of Housing, within 2 years from the acquisition date.
   • Proof of commencement of housing development of 5 or more units of housing accommodation, including but not limited to piling, foundation or demolition works, within 2 years from the acquisition date.
   • Proof of completion (i.e. Temporary Occupation Permit or Certificate of Statutory Completion) of housing development of 5 or more units of housing accommodation and disposal of all units of housing accommodation in the development within 5 years from the acquisition date.
   • A list of all sold and unsold units with the details of buyers (names and identity numbers) as at 5 years from the acquisition date, within 5 years and 1 month from the acquisition date, in the event that not all units of housing accommodation in the development are sold; and
   • Any other documents or information that IRAS requires in relation to this remission.
4. The developer agrees and undertakes to pay to the Commissioner of Stamp Duties as a debt due to the Singapore Government an amount equal to the ABSD remitted as a result of this undertaking, together with interest thereon at the rate of 5% per annum from 14 days after the acquisition date, if any of the above conditions are not met.
5. With effect from 16 Feb 2024, for residential land acquired on or after 6 Jul 2018 that is subject to the 25% or 35% remittable ABSD rate, the ABSD remission clawback rate will be reduced by 1 percentage point to 10 percentage points based on the proportion of units sold (rounded down to the nearest whole number) by the ABSD remission sale timeline, provided that the commencement and completion of works criteria are also fulfilled. The ABSD remission that is clawed back will be subject to interest at the rate of 5% per annum. 

6. [New!] On 5 Mar 2025, the Government announced the following changes to the ABSD regime for licensed housing developers:

• Extension to the ABSD remission timelines for complex projects; and
• Extension to qualifying period for the ABSD remission timeline extensions for smaller projects (total gross floor area (GFA) under 30,000 sqm) submitted through CORENET X.

Please refer to ABSD Housing Developers Remission Timeline Extensions for Complex Projects and CORENET X for more details on the extensions.

7. The developer agrees and undertakes to pay the amount recoverable by the Commissioner under condition 4 at the place stated and in the manner provided in a notice served by the Commissioner within one month after the service of the notice by the Commissioner. 

B. Where the purchaser/transferee is a trustee for the housing developer

1. The trustee for the housing developer ensures that the developer complies with conditions 1 to 3 in (A) above.  
2. The trustee agrees and undertakes to pay to the Commissioner of Stamp Duties as a debt due to the Singapore Government an amount equal to the ABSD remitted as a result of this undertaking, together with interest thereon at the rate of 5% per annum from 14 days after the acquisition date, if condition 1 is not met.

With effect from 16 Feb 2024, for residential land acquired on or after 6 Jul 2018 that is subject to the 25% or 35% remittable ABSD rate, the ABSD remission clawback rate will be reduced by 1 percentage point to 10 percentage points based on the proportion of units sold (rounded down to the nearest whole number) by the ABSD remission sale timeline, provided that the commencement and completion of works criteria are also fulfilled. The ABSD remission that is clawed back will be subject to interest at the rate of 5% per annum. 

3. The trustee agrees and undertakes to pay the amount recoverable by the Commissioner under condition 2 at the place stated and in the manner provided in a notice served by the Commissioner within one month after the service of the notice by the Commissioner. 

4. The trustee submits a written undertaking (in the prescribed format) (PDF, 87KB) to comply with all the conditions.  

C. Where the purchaser intended for the site to be transferred to a housing developer incorporated (or to be incorporated)

1. At the point of contract, there is a clear intention that the purchaser wants the property to be transferred to a housing developer 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. No consideration has passed between the purchaser and the company
4. The purchaser has beneficial interest in more than 50% of the share capital and voting rights in the housing developer from the date of purchase to the date of the issue of the Temporary Occupation Permit or Certificate of Statutory Completion for all units of housing accommodation in the development.

_{Notes: ¹ Where the instrument is a conveyance direction, the date of execution of the instrument is the date of the contract or agreement for the sale of the site to the holding company.}

D. Where additional site is purchased on/after 6 Feb 2023 for housing development with other site(s)

1. The developer is the beneficial owner of one or more residential sites (“initial site”).
2. The developer has purchased an additional site for a single housing development to be undertaken with the initial site. 
3. The developer has been granted or intends to apply for a Written Permission for a single housing development to be undertaken on the additional and initial sites. 
4. Where the purchase of the initial site was granted the ABSD Housing Developers Remission, ABSD remission is also available on the purchase of the additional site, subject to the developer or trustee for the housing developer providing a written undertaking to meet conditions 1 to 3 in (A) above from the acquisition date of the initial site (or if there is more than one initial site which has been granted the ABSD Housing Developers Remission, the earliest one). 
5. Where the purchase of the initial site was not granted the ABSD Housing Developers Remission or was not subject to ABSD, ABSD remission is available on the purchase of the additional site, subject to the developer or trustee for the housing developer providing a written undertaking to meet conditions 1 to 3 in (A) above from the acquisition date of the additional land. 
6. The number of units of housing accommodation in the development to be sold within the sale timeline shall be calculated based on the below formula:

   
   [(A+B+C)/D] x E

   where

   • A is the land area of the additional site;
   • B is the total land area of the initial site(s) granted the ABSD Housing Developers Remission;
   • C is the total land area of any other sites which the developer becomes the beneficial owner of after the acquisition of the additional site, on which the developer undertakes the same housing development as that undertaken on both the additional and initial sites, and the ABSD chargeable on those other sites is granted the ABSD Housing Developers Remission.
   • D is the total land area of the additional site, the initial site(s) and other residential sites (whether or not these sites are granted the ABSD Housing Developers Remission) of the single housing development and
   • E is the total number of units of housing accommodation in the single housing development.

      

Link to legislation

Please refer to Stamp Duties (Housing Developers) (Remission of ABSD) Rules for the remission rules.

How to apply

You can e-Stamp at the e-Stamping Portal to obtain the remission certificate. 

You will need to prepare and upload a Letter of Undertaking (in the prescribed format for developer (PDF, 93KB) and trustee for housing developer (PDF, 87KB) if any) that the remission conditions have been or will be met onto the e-Stamping Portal.

For the remission in (D) above, you can apply for the remission via the e-Stamping Portal (“Request” > “Apply for Assessment / Appeal”) within 14 days after the date of purchase. You have to login with your SingPass (under Individual or Business user). Please also submit the following supporting documents with your application:

1. Signed Letter of Undertaking
2. Land details (i.e. Mukim/Lot number) of the initial site(s) and the Document ref. no. of the Stamp Duty certificates issued for the purchase of the initial site(s).
3. Copy of the Acceptance to Option to Purchase / Sale and Purchase Agreement for the purchase of the additional site.
4. Copies of the Housing Developer Licence and Written Permission issued by URA (if available)
5. Copy of the Qualifying Certificate issued by SLA (if available)
6. Copy of the Permit to Commence Structural Works issued by BCA (if available)
7. If piling, foundation or demolition works have commenced, a copy of the Architect or Professional Engineer’s declaration on the date of commencement of the works.
   

FAQs