Stamp Duty Traps to Watch Out For

The Business Times, 22 December 2021

3 Pages Posted: 15 Mar 2022

See all articles by Liu Hern Kuan

Liu Hern Kuan

Inland Revenue Authority of Singapore

Vincent Ooi

Singapore Management University - Yong Pung How School of Law; Singapore Management University - Centre for AI & Data Governance

Date Written: December 22, 2021

Abstract

On 15 December 2021, the Ministry of Finance introduced a new package of measures designed to cool the residential property market. The measures include increases in Additional Buyer’s Stamp Duty ('ABSD'), the tightening of the Total Debt Servicing Ratio, adjustments to the Loan to Valuation limit for loans from HDB and a planned increase of housing supply.

Notably, there were significant increases in the ABSD rates applicable to almost all categories of buyers. The ABSD rates only remained unchanged for Singapore Citizens and Permanent Residents purchasing their first residential property (0% and 5% respectively). This article focuses on the implications of the increase in ABSD rates arising from the property cooling measures.

The considerable increase in ABSD rates has made stamp duty mis-steps even more costly and taxpayers should look out for the following 'traps' in dealing with residential property if they do not want to incur an unexpected (and large) tax bill.

Keywords: Stamp duties, tax law, Singapore taxation

Suggested Citation

Hern Kuan, Liu and Ooi, Vincent, Stamp Duty Traps to Watch Out For (December 22, 2021). The Business Times, 22 December 2021, Available at SSRN: https://ssrn.com/abstract=4010926

Liu Hern Kuan

Inland Revenue Authority of Singapore ( email )

55 Newton Road
Revenue House
Singapore, 307987
Singapore
+65 6351 2030 (Phone)
+65 6351 2077 (Fax)

HOME PAGE: http://www.iras.gov.sg

Vincent Ooi (Contact Author)

Singapore Management University - Yong Pung How School of Law ( email )

55 Armenian Street
Singapore, 179943
Singapore

HOME PAGE: http://vincentooi.com

Singapore Management University - Centre for AI & Data Governance ( email )

55 Armenian Street
Singapore
Singapore

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