Determining SSD Liability
A. The type of property sold or disposed
B. The date of purchase or acquisition
C. The date of sale or disposal
D. Rates applicable
A. The Type of Property Sold or Disposed of
The property is a industrial property.
B. The Date of Purchase or Acquisition
- If an industrial property is acquired on or after 12 Jan 2013, SSD is payable if the industrial property is disposed of within the holding period.
- In some instances, the date of purchase/ acquisition of an interest in a property depends on the manner which it was acquired:
- For a property where the zoning of the land or the permitted use changes:
|Manner of Acquisition of that interest in the property||Date of Acquisition of that interest in the property|
|Transfer pursuant to divorce where it fulfills Stamp Duties (Matrimonial Proceedings) Remission Rules (MP rules)|
1. Date of the Marriage (that has ended); or
2. Date the interest was acquired by the transferor prior to the transfer; whichever is later.
|Transfer pursuant to inheritance|
Date the interest was acquired by the deceased
- If the vacant land or entire building with land which you are disposing of has been re-zoned from non-residential purposes to "Business Park", "Business Park – White", "Business 1 (B1)", "Business 1 – White", "Business 2 (B2)" or "Business 2 – White", the date of acquisition of the property is the date of the rezoning.
- If the building units or part of an entire building which you are disposing of has its permitted use being changed from non-industrial purposes to industrial/ mixed-industrial purposes, the date of acquisition of the property is the date of the change of use.
C. The Date of Sale or Disposal
In most instances, the date of sale/ disposal of a property refers to:
- Date of Acceptance of the Option to Purchase* by the buyer to the seller's offer to sell
- Date of Sale and Purchase Agreement or
- Date of Transfer where (1) and (2) are not applicable
*Excludes an option to Purchase that is subject to the execution/ signing of the Sale and Purchase Agreement
D. Rates Applicable
The rates of SSD payable on industrial property acquired on and after 12 Jan 2013 and disposed of within certain duration, are summarized in the table below:
|Date of Purchase / Acquisition or Date of Change of Zoning / Use||Holding Period||SSD Rate (on the actual price or market value, whichever is higher)|
|On or after 12 Jan 2013||Up to 1 year||15%|
|More than 1 year and up to 2 years||10%|
|More than 2 years and up to 3 years||5%|
|More than 3 years||No SSD payable|
SSD payable to be rounded down to the nearest dollar.
Rates and Computation
SSD is computed by applying the requisite SSD rate on the higher of the selling price or the market value of the industrial property as at the date of sale or disposal.
Where parts of the industrial property were acquired by the vendor at different times, the holding period for each part acquired will be computed from the respective acquisition date.
Where the sale or disposal comprises only a partial interest in the industrial property, SSD payable will be based on the higher of the selling price or market value of the partial interest.
Example 1: Mr A buys a factory unit after 12 Jan 2013 for $1,500,000 and sells it for $2,000,000 after eight months.
Since the property is bought after 12 Jan 2013 and sold within one year, SSD is payable at 15% on the selling price of $2,000,000, assuming this is a fair market value.
|Computation of SSD|
|15% of $2,000,000||$300,000|
Example 2: Mr B buys a piece of vacant land zoned for mixed purposes (e.g. B1 - White) on 20 Jan 2013 and sells it for $60 million on 30 Jun 2014.
For sale of vacant land, SSD will be charged based on the Master Plan zoning. As the land is zoned "B1 - White", SSD will be payable based on the land value attributable to industrial purpose based on the minimum GFA set aside for B1 use.
The value of the industrial component may be determined by a professional valuer. Alternatively, an application for adjudication can be submitted to IRAS.
Since the property is sold within 2 years of purchase, Mr B is liable to pay SSD at 10% on the selling price or value apportioned to the industrial component. If the value of the land attributed to the industrial component is, say $50mil, SSD may be computed as follows:
|Computation of SSD|
|10% of $50,000,000||$5,000,000|
Exemptions from SSD for Industrial Properties under the Stamp Duties Act
SSD for industrial properties is exempt for sellers / transferors under the following scenarios.
No application to Commissioner of Stamp Duties is required for the sellers / transferors.
- Disposal of properties by the public authorities (e.g. HDB and JTC) in exercising their statutory functions and duties
- Compulsory acquisition of properties by the Government under the Land Acquisitions Act
- Disposal of properties arising from bankruptcy proceedings or involuntary winding up
- Re-possession of properties by HDB and JTC
- Disposal of property to JTC due to the following schemes:
- JTC Enbloc Redevelopment Scheme
- JTC Selective Buyback Scheme
- Payment of SSD can be done via the e-Stamping Portal.
- For details on payment modes, you may wish to refer to How to Pay Stamp Duty.
- Law firms representing the sellers are required to fill in a Seller's Stamp Duty for Industrial Properties Declaration Form. The completion of this form is mandatory.
- The completed form need not be submitted to IRAS. However, law firms are advised to retain the original declaration forms for at least 5 years from the date of sale/ disposal of the property as IRAS may request for it for audit purposes.
On what basis did the government decide which are the uses or zoning to be included in “Industrial property”?
The SSD is targeted at space where industrial activities are conducted. The specified "industrial" uses are typically found in industrial space.
Similarly, "industrial" land refers to land where the development of such industrial uses is allowed.