Stamp Duty | Notion

Revise the Additional Buyer’s Stamp Duty (ABSD) Remission Clawback Rates for Housing Developers (HDs)

Current HDs that purchase residential land are subject to 40%[1] ****ABSD, comprising a:

5% non-remittable component, and
35% upfront remittable component.

If a licensed HD that develops 5 or more residential units fails to sell all its residential units within 5 years from the date of acquisition of the residential land, the 35% remittable component will be clawed back with interest, regardless of the number of unsold units.

Proposed With effect from 16 February 2024, projects with at least 90% of units sold at the 5-year sale timeline will be subjected to a lower ABSD remission clawback rate, if the commencement and completion of works criteria are also fulfilled. This applies for projects where the residential land was acquired on or after 6 July 2018. The ABSD remission clawed back will be reduced by 1 percentage point to 10 percentage points, depending on the proportion of units sold at the 5-year mark.

Introduce a New ABSD Concession for Single Singapore Citizen (SC) Seniors

Current ABSD of 20% applies on the purchase of a second residential property (RP) by all SCs. This applies regardless of whether they dispose of their first RP subsequently, as the purchase of the second RP adds to the demand for RPs at the time of purchase.

An exception was made for SC married couples buying a replacement RP. Under this concession, ABSD paid can be refunded provided that the first RP is sold within 6 months after:

the date of purchase of a completed RP, or
the issue date of the Temporary Occupation Permit (TOP) or Certificate of Statutory Completion (CSC) of an uncompleted RP,

whichever is earlier.

Proposed To better support single SC seniors who wish to right-size their RP, the ABSD concession will be extended to single SC seniors aged 55 and above. For purchases on or after 16 February 2024, single SC seniors aged 55 and above can claim a refund of ABSD paid on the replacement private RP if they meet the following conditions:

ABSD has been paid on the replacement RP
Each first RP is solely owned by a single SC aged 55 and above, or with single SCs aged 55 and above who are immediate family members[2]
The owners of each first RP need to be the owners of the replacement RP. Any additional owners purchasing the replacement RP with the owners of each first RP must also be single SCs aged 55 and above who are immediate family members. There should be no change of ownership in the replacement RP at the time of the sale of each first RP
The buyer(s) do not own more than one RP each at the point of purchasing the replacement RP, and have not purchased or acquired any other RP since the purchase of the replacement RP
The value of the replacement RP is less than the value of each of the first RP(s) sold[3]
The buyer(s) dispose the first RP(s) (whether co-owned or separately owned) within 6 months after the date of purchase of a completed RP, or the issue date of the TOP or CSC of an uncompleted RP, whichever is earlier, and
The application for the refund of ABSD is made within 6 months after the date of sale of the first RP(s).

The 40% ABSD (HD) rate applies to purchases of residential land on or after 16 December 2021. For purchases made between 6 July 2018 and 15 December 2021, the applicable ABSD (HD) rate is 30%, comprising a (i) 5% non-remittable component, and (ii) 25% upfront remittable component.
Immediate family members refer to one’s parent, child, or sibling.
The value refers to the higher of the purchase price or market value of the RP purchased/sold. The value of the replacement RP is that as at the date of purchase of the replacement RP, while the value of the first RP is that as at the date of sale of the first RP.

| Disclaimer

This online newsletter and website has been prepared by Crowe Horwath First Trust (”Crowe Singapore”) and should be used as a general guide only. No reader should act solely upon any information found on this website. We recommend that professional advice be sought before taking action on specific issues and making significant business decisions. Crowe Singapore expressly disclaims all and any liability to any person in respect of anything, and of the consequences of anything, done or omitted to be done by any such person in reliance, whether wholly or partially, upon the whole or any part of the contents of this website. While every effort has been made to ensure the accuracy of the information contained herein, Crowe Singapore shall not be responsible whatsoever for any errors or omissions in it.
About Crowe Singapore
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