Determining ABSD Liability
The ABSD liability will depend on the profile of the buyer as at the date of purchase or acquisition of the residential property:
A. Whether the buyer is an individual or an entity
B. The residency status of the buyer and
C. The count of residential properties owned by the buyer
- Date of execution of the Acceptance to the Option to Purchase or
- Date of Sale & Purchase Agreement or
- Date of transfer where (1) and (2) are not available nor applicable
A. Whether the Buyer is an Individual or an Entity
An entity means a person who is not an individual. It includes the following:
- An unincorporated association
- A trustee for a collective investment scheme when acting in that capacity
- A trustee-manager for a business trust when acting in that capacity
- The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property
If a property is jointly purchased by buyers of different profiles, the profile with the highest ABSD rate will apply on the entire value purchased.
If A purchases a residential property to be held on trust for the beneficial owner B, ABSD is charged based on the profile of the beneficial owner, B.
B. The Residency Status of the Buyer
The applicable ABSD rate is based
on the nationality of the buyer on the date of purchase. You must have been granted the residency status by the Immigration and Checkpoint Authority (ICA) as at the date of purchase in
order to enjoy lower ABSD liability. The date of issue
reflected in the IC collection slip would be taken as when the residency status
was granted.
C. The Count of Residential Properties Owned by the Buyer
If a Contract or an Agreement to purchase the property has been signed, that property is to be included in the count of properties owned by a buyer (A) from the date of acceptance of the agreement, even if it has not been legally transferred to him as he already has an equitable interest in the property.
This also includes the purchase of an uncompleted unit from the developer if the Sale & Purchase Agreement has been signed.
Similarly, the property is to be excluded from the count of properties owned by a buyer (A) if there is already a Contract or an Agreement to sell his property and the new buyer (B) has executed his option to buy the property.
As long as a buyer owns any 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 properties.
If A purchases a residential property to be held on trust for the beneficial owner (B), the property will be included as a count for B.
Although many properties may be bought under a single contract, each property will be counted as a separate property. Where applicable, the buyer may choose any one of the multiple properties to be subject to ABSD. For example, if a Singapore Citizen who does not own any residential property decides to purchase two residential properties in one contract, he may choose any one of the units to be subject to ABSD.
In the case of a building with multiple units approved by URA but under a single title, ABSD will be based on the number of multiple units.
Apart from properties that have been purchased, properties acquired or transferred by way of gift, inheritance, release, settlement, declaration of trust (where the beneficial interest of the property passes to the beneficiary), letter of authority and exchange are to be included in the property count.
HDB shops with living quarters or shophouses with a portion permitted for residential use will be included as a residential property count.
All residential properties gazetted for compulsory acquisition are to be excluded from the count of properties.
All residential properties located outside Singapore are to be excluded.
Rates and Computation
ABSD Rates on the higher of the purchase price or market value| Profile of Buyer | ABSD Rates from 8 Dec 2011 to 11 Jan 2013 | ABSD Rates from 12 Jan 2013 to 5 Jul 2018 | ABSD Rates on/ after 6 Jul 2018 |
|---|
| Singapore Citizens (SC)1 buying first residential property | Not applicable | Not applicable | Not applicable |
| SC1 buying second residential property | Not applicable | 7% | 12% |
| SC1 buying third and subsequent residential property | 3% | 10% | 15% |
| Singapore Permanent Residents (SPR)1 buying first residential property | Not applicable | 5% | 5% |
| SPR1 buying second and subsequent residential property | 3% | 10% | 15% |
| Foreigners (FR) buying any residential property | 10% | 15% | 20% |
| Entities2 buying any residential property | 10% | 15% | 25%3 |
| plus Additional 5% for Housing Developers4 (non-remittable)5 |
For BSD rates, click
here.
1 Whether owned wholly, partially or jointly with others.
2 An Entity means a person who is not an individual. It includes the following:
- An unincorporated association,
- A trustee for a collective investment scheme when acting in that capacity,
- A trustee-manager for a business trust when acting in that capacity
- The partners of the partnership whether or not any of them is an individual, where the property conveyed, transferred or assigned is to be held as partnership property.
3 As entities, developers will also be subject to the ABSD rate of 25% for entities. Developers may apply for remission of this 25% ABSD, subject to conditions.
4 Housing Developers refer to entities in the business of housing development (i.e. construction and sale of housing units) with respect to the subject property acquired.
5 This 5% ABSD for Housing Developers is in addition to the 25% ABSD for all entities. This 5% will not be remitted, and is to be paid upfront upon purchase of residential property.
5 ABSD is to be rounded down to the nearest dollar.
| Computation of ABSD |
|---|
| 20% of $2,000,000 | = $400,000 |
| ABSD Payable | $400,000 |
All entities will be subject to the new ABSD rate of 25%. In addition, housing developers are subject to an additional non-remittable ABSD rate of 5% upon stamping, i.e. aggregate ABSD rate of 30%. Such developers may apply for remission on the ABSD rate of 25% under the
ABSD remission for development of 4 or less units or housing accommodation or
ABSD remission for development of 5 or more units of housing accommodation.
Entities who are acquiring residential properties with no intention to carry out housing development (i.e. construction and sale of housing units) with respect to the subject property acquired should pay the ABSD rate of 25%.
It is important for the purchasing entity to decide whether it will undertake housing development of the subject property at the point of purchase, 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 25% will not qualify for the ABSD Housing Developers Remission, even if they fulfil the remission conditions subsequently. Similarly, developers who paid the ABSD rate of 5% and applied for the ABSD Housing Developers Remission cannot withdraw their application subsequently. If they are unable to meet the remission conditions, the remitted ABSD of 25% will be recovered with interest.
Remission for acquisition of residential properties during the transitional period
There is a transitional remission for residential properties acquired on or after 6 Jul 2018 such that the former ABSD rates, instead of the new ABSD rates will apply. For buyers to be eligible for the remission, all of the following conditions must strictly be met:
- The option to purchase (“OTP”) is granted on or before 5 Jul 2018;
- The OTP is exercised* on or before 26 Jul 2018 or the date of expiry of the OTP validity period, whichever is the earlier; and
- The OTP is not varied (including any extension of the validity period) on or after 6 Jul 2018.
*For stamp duty purposes, the OTP is considered exercised when the Acceptance to OTP or Sale and Purchase Agreement (whichever applicable) is executed, i.e. signed by the buyer.
No remission is applicable for SC or SPR buying 1st residential property as there is no change to their ABSD rates.
To apply for the remission, please email the typewritten Application Form for ABSD Transitional Remission to estamp@iras.gov.sg under the subject “ABSD Transitional Remission – Insert Property Address” within 14 days from the date of execution of the instrument.
For applicants who declared in the application form that they are also applying for ABSD Housing Developers Remission, please include the following supporting documents in your email.
- Option granted (if any)
- Executed Sale Contract
- Prescribed Letter of Undertaking
For all other applicants, there is no need to email the instrument or other documentary evidences to IRAS for the purpose of this application unless specifically requested by IRAS.