Where remission of ABSD (Trust) has been granted, part or all of the ABSD (Trust) of 65% paid will be refunded.
The amount refunded will be based on the difference between (i) the ABSD (Trust) paid and (ii) the ABSD payable based on the highest profile of the beneficial owners of the residential property in the transaction.
All applications for the remission must be made within 6 months after the date of execution of the instrument.
Conditions for remission
- The residential property is held on trust for identifiable individual beneficiaries only
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.
2. ABSD (Trust) of 65% has been paid
3. The application is made within 6 months after the date of execution of the instrument
Link to legislation
Please refer to Stamp Duties (Trusts for Identifiable Individual Beneficiary) (Remission of ABSD) Rules for the remission rules.
How to apply
You can apply for the remission via the e-Stamping Portal using the following steps:
- Select "Request"
- Select "Apply for Assessment / Appeal"
- Select "Assessment (including remission and penalty)" under New Application.
If the document has already been stamped, select "Yes" and enter the Document Ref No. Click "Continue" to fill in the rest of the details and submit the online form thereafter.
If the document has not been stamped, please stamp the document and make payment of 65% ABSD (Trust) first before applying for remission as per the steps above. To stamp the document, select "Stamping" > "Sale & Purchase – Purchase/ Acquisition" > Select the relevant form:
- For purchase of residential property on trust for individual beneficiaries / entity beneficiaries, select the relevant document description (e.g. "Sale and Purchase Agreement” or “Acceptance to Option to Purchase”) and check the “To hold the property in trust for the beneficial owner” intent checkbox and fill in the details.
- For transfer of residential property to be held on trust for individual beneficiaries / entity beneficiaries where trustee already owns the residential property, select document description as “Declaration of Trust” and fill in the details.
If you are applying for more than one remission, please specify all applicable remissions. You will have to login with your Singpass (under Individual or Business user).
- Copy of the trust instrument
- Copy of the Option to Purchase / Sale and Purchase Agreement (if applicable)
FAQs
ABSD (Trust) of 65% 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.
For this case, if you apply within the 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 wife purchased the property directly in her name. As this is the second residential property owned by your wife, the total amount of ABSD refunded will be 45% (being 65% - 20%).
ABSD (Trust) of 65% 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 65% 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.