Stamp Duty Basics for Shares

Stamp Duty is a tax on dutiable documents relating to immovable properties in Singapore and stocks and shares.

Dutiable Documents relating to Share Transfers

 Dutiable documents relating to share transfers include the following:

1.    Contract or Agreement (e.g. Sale and Purchase Agreement) and Transfer Instruments for Shares

These are documents that are signed when you buy or acquire shares. Stamp Duty is payable on the actual price or net asset value of the shares, whichever is higher. 

 

The additional conveyance duties (“ACD”) or share duty chargeable on the following contract/ agreement for the sale of shares may be remitted: 

Contract/ Agreement for  Duties remitted
 (A) Sale of shares that is not subject to ACD Share duty
 (B) Sale of scripless shares ACD and share duty
 (C) Aborted sale and purchase of equity interests (e.g. shares) ACD and share duty

 

There is no need to e-stamp or submit an application for remission to IRAS for (A) and (B). The relevant duties remain payable on the executed transfer instrument, if applicable. 

For more information on the remission, please refer to remission for agreements for sale of equity interests.  

2.    Mortgages for Shares

These are documents signed when you pledge your shares to obtain a loan from a bank or a financial institution. Stamp Duty is payable on the loan amount.

For exceptions, please refer to exemptions, remissions and reliefs

When to Stamp

You are required to stamp a document before you sign it. However, if you have signed a document and stamped it within the following time frame, no penalty will be charged: 

  1. Within 14 days after signing the document if it is signed in Singapore or
  2. Within 30 days after receiving the document in Singapore if the document is signed overseas

Where to Stamp

You can stamp your documents through any of the following:

Non-Payment or Late Payment of Stamp Duty

If you do not meet the deadline, you may have to pay a penalty.

A penalty of up to 4 times may be imposed on documents that are unstamped, stamped late or insufficiently stamped.

It is an offence to use a document for which stamp duty payment has not been made. 

Please refer to Late Payment of Stamp Duty for more details.

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