Remission of ABSD (Trust)

An identifiable individual beneficiary of a trust for whom an estate or interest in residential property is held on trust, is an individual —

(a) who is identified in the declaration of trust as a beneficiary of the property whether solely or together with another; and

(b) who, because of the trust, has beneficial ownership of the property (whether solely or together with another) that is not, under the terms of the trust, revocable, variable, or subject to any condition subsequent,

but excludes an individual who is entitled to any estate or interest in property in remainder or reversion.

The following are not considered to be an identifiable individual beneficiary:

(a) an individual who has not been born on the date of declaration of the trust;

(b) an individual who is entitled only to the income of the property under the trust;

(c) an individual whose estate or interest in the property under the trust is a contingent or discretionary interest, or who becomes entitled to an estate or interest in the property only upon revocation of the trust.

ABSD (Trust) of 35% is payable as the property was purchased on trust for your wife. You will need to make upfront payment of ABSD (Trust) before making a remission application where IRAS will assess whether the refund conditions are met.

ABSD (Trust) of 35% is payable as the property was purchased on trust for your child. You will need to make upfront payment of ABSD (Trust) before making a remission application where IRAS will assess whether the refund conditions are met.

For this case, if you apply within the remission deadline with the necessary supporting documents, you will be eligible for remission of the difference between the ABSD (Trust) amount paid and the ABSD payable had your child purchased the property directly in his/her name. As this is the first residential property owned by your minor child, the total amount of ABSD refunded will be the full 35% ABSD that had been paid earlier.

Most applications will be processed within 2 months from the date of complete information being submitted. Where the application has been approved, the refund will be made within 1 month after approval.

No, it is a condition under the Stamp Duties (Trusts for Identifiable Individual Beneficiary) (Remission of ABSD) Rules 2022 that the ABSD chargeable on the instrument has to be paid before remission can be granted.

As such, we are unable to grant any remission of ABSD before ABSD (Trust) is paid.

Please stamp the instrument within 14 days after the execution of the document if it is executed in Singapore or, if first executed outside Singapore, within 30 days after it has been first received in Singapore, and make payment before the due date to avoid incurring late stamping penalties.

ABSD (Trust) applies to the transfer of any residential property into a living trust on or after 9 May 2022. A living trust is defined as one that is created by a person (settlor) within his or her lifetime and does not include a testamentary trust (i.e. a trust that is made using a Will and which takes effect after the settlor’s death).

As the trust in this scenario is a testamentary trust, hence ABSD (Trust) does not apply.