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Additional Buyer’s Stamp Duty (ABSD)

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Understanding Additional Buyer’s Stamp Duty (ABSD)

To manage the rising property market and discourage property speculation, the Singapore government introduced the ABSD in 2011. The government has increased the ABSD rates again, which will come into effect from 27 April 2023. This is in response to the significant increase in private residential property prices, as reported by the latest URA figures.

If someone is buying a second or subsequent residential property, they are liable to pay the Additional Buyer’s Stamp Duty (ABSD), in addition to the Buyer’s Stamp Duty (BSD). However, unlike the BSD which is calculated based on the incremental value of the property, the ABSD is calculated based on the buyer’s profile, and a flat ABSD rate is applied to the entire purchase price of the property.

This article discusses how much ABSD buyers are required to pay when buying a second investment property or upgrading from their current property.

Note: The content provided on this blog is for informational purposes only. While every effort is made to ensure accuracy, it is recommended for users to verify all information with Inland Revenue Authority of Singapore (IRAS).

What is the ABSD rate in Singapore?

The ABSD rates in Singapore vary depending on the buyer’s profile and the number of residential properties they currently own. For example, a Singaporean citizen purchasing their second residential property is required to pay an ABSD rate of 12% on the purchase price, while a Permanent Resident (PR) purchasing their first residential property will be required to pay a 5% ABSD rate. Meanwhile, a foreigner purchasing any residential property in Singapore will be required to pay an ABSD rate of 20% on the purchase price.

ABSD Rates for Residential Property in Singapore

Additional Buyer’s Stamp Duty (ABSD) Rates in Singapore
Profile of Buyer ABSD Rates from 16 Dec 2021 to 26 Apr 2023 ABSD Rates on or after 27 Apr 2023
Profile of Buyer Singapore Citizens (SC) buying first residential property1 Not applicable Not applicable
Profile of Buyer SC buying second residential property1 17% 20%
Profile of Buyer SC buying third and subsequent residential property1 25% 30%
Profile of Buyer Singapore Permanent Residents (SPR) buying first residential property1 5% 5%
Profile of Buyer SPR buying second residential property1 25% 30%
Profile of Buyer SPR buying third and subsequent residential property1 30% 35%
SC – Singapore Citizen; SPR – Singapore Permanent Resident; ABSD – Additional Buyer’s Stamp Duty
See also: Buyer’s Stamp Duty Table

The Additional Buyer’s Stamp Duty (ABSD) is a tax imposed on property buyers in Singapore, in addition to the standard Buyer’s Stamp Duty (BSD). The rates for ABSD depend on the buyer’s profile and the number of residential properties owned. The table above shows the ABSD rates applicable from 16 Dec 2021 to 26 Apr 2023, and those that will be applicable on or after 27 Apr 2023.

Want to calculate your total payable stamp duty?
Here you may find our Stamp Duty Calculator (ABSD/BSD) to be useful.

ABSD Treatment for Trusts

The ABSD (Additional Buyer’s Stamp Duty) treatment for trusts includes a remission which aims to standardize the ABSD treatment for transfers of residential properties, regardless of the involvement of a trust. The remission can only be availed if all the requirements are met, and you may refer to the Remission of ABSD (Trust) for further details.

Residential Property Count for ABSD (Trust)

Any residential property transferred to a trust will be included in the property count of any identifiable beneficial owner of that property, regardless of whether the ABSD (Trust) remission is obtained or not.

Stamping Documents Liable to ABSD (Trust)

To stamp documents liable to ABSD (Trust), you can use the e-Stamping Portal and select “Stamping” then “Other Form”. You need to log in with your Singpass under Individual or Business User to complete the process.

Frequently Asked Questions (FAQs)

A: In cases where the document does not specify the party liable for stamp duty, the payment follows the guidelines outlined in the Third Schedule of the Stamp Duties Act. Generally, for ABSD, the responsibility lies with the purchaser (buyer) or transferee. For more information, please refer to our guide on “Who Should Pay Stamp Duty.”
A: BSD and ABSD must be paid within 14 days from the date of signing the Contract or Agreement. If the Contract or Agreement is executed overseas, payment should be made within 30 days from the receipt of the Contract or Agreement in Singapore. It’s important to note that a document is considered duly stamped only when the full stamp duty amount is paid. IRAS conducts audit checks to ensure compliance, and failure to pay can result in a penalty of four times the unpaid duty.
A: Stamp duty is an upfront cost that buyers must allocate funds for when purchasing a property. It must be paid in full and cannot be deferred. Inadequate or late payment of stamp duty is equivalent to non-stamping and may result in penalties.
A: The use of CPF funds to pay stamp duty is subject to the terms and conditions specified under the Private Properties and Public Housing Schemes. For more details, we recommend reaching out to the CPF Board.
A: Yes, based on your profile, ABSD is still applicable even for transfers made by way of a gift. The calculation is based on the market value of the property since no consideration was involved. ABSD is calculated based on the consideration or market value, whichever is higher.
A: If your inheritance is in accordance with a Will, Intestacy Law, or Muslim Inheritance Law, ABSD is not applicable in this case.
A: Based on your respective profiles, ABSD is applicable as changing the ownership ratio results in a transfer of interest in the property.

Disclaimer: The information provided on this website is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. We strongly recommend that you verify all the information with the direct official sources before any sale, rent and purchase of any property. Any reliance you place on such information is therefore strictly at your own risk. We do not assume any responsibility or liability for any errors or omissions in the content of this website or for any action taken by users based on information provided on this website.

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