We refer to the article “ABSD hike may see more investing in property SPVs” published in the Business Times on 24 January 2013.
When the company buys a residential property, it will be subject to ABSD, and at the highest ABSD rate of 15%.
Under the Stamp Duties Act, the Commissioner of Stamp Duties may disregard or vary any arrangement to counteract any reduction in or avoidance of duty payable by that person. The Inland Revenue of Authority of Singapore audits stamp duty transactions to detect transactions that are conducted for tax avoidance purposes.
Mrs Claire Chua
Director (Corporate Communications)
Inland Revenue Authority of Singapore