In Singapore, you are obliged to pay the Buyer’s Stamp Duty once you buy or sell a property. This is the tax that must be paid by the time you sign the documents such as the Sale and Purchase Agreements and/or the Option to Purchase. The amount that you must pay would depend on the market price or actual price of the property; whichever is higher. But other than that, they are also expected to pay for the Additional Buyer’s Stamp Duty or ABSD since 2011. This is part of the property cooling measures, which was revised last 2013. You need to pay for these taxes whether you opt for a non-landed property or new launch developments like Adana @ Thomson, Botanique @ Bartley, North Park Residences; or a landed residential property like Charlton 18, Whitley Residences and Terra Villas.
The liability of an individual’s Additional Buyer’s Stamp Duty or ABSD is determined by different factors including the buyer’s residency status, if the buyer is an entity (company, corporation, association, etc.) or just one person, and the number of properties that the buyer owned prior to the acquisition of the new property.
But what do you mean by the term entity buyer? This actually pertains to the following:
- A legal corporation or association that is not yet completely organized
- A trusted manager who buys a property in behalf of a business trust
- A trustee who represents an investing scheme.
As for the status of the buyer’s residency, anyone can actually buy a property in Singapore regardless whether he has a formal approval or not. However, in order to get a lower amount for the ABSD liability, one can present his formal approval given by the Immigration and Checkpoint Authority that would confirm the residency of the buyer’s status.
The number of properties owned by the buyer or the entity is also considered when computing for the ABSD. They have to submit the documents proving that they purchased the investment prior from the date of their contract agreement whether they own it in full or they are just a partial owner of the property. This also includes the property held on trust and properties purchased through the HDB.
Remember that the amount of your ABSD as well as BSD tax will always be rounded off to the nearest Singaporean dollar. Moreover, if you are a foreigner who wishes to purchase a property worth $2 million, the computation of your ABSD is also subject to a 15% rate as well.