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Some Nationalities Exempt from New Property Tax

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Some Nationalities Exempt from New Property Tax

Postby carteki » Thu, 12 Jan 2012 3:28 pm

http://www.todayonline.com/Voices/EDC12 ... ngaporeans

Random piece of news that popped up last week... It seems that because of the free trade agreements the citizens (all?) of United States, Switzerland, Norway, Liechtenstein and Iceland are treated as "locals" and therefore don't need to pay the new tax.

Interested to hear if anyone has more info.

Cheers
Kim

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Postby zzm9980 » Thu, 12 Jan 2012 8:00 pm

Wow, finally being American does something for me!

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Postby zzm9980 » Fri, 20 Jan 2012 11:48 pm

I looked for more info, and this is the extend of what I found:

http://www.iras.gov.sg/pv_obj_cache/pv_ ... 202011.pdf

Page 8:

9.3 Foreigners under Free Trade Agreements (FTAs)
Foreigners of certain nationalities4 who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.
Such buyers are required to submit an application for remission so as to enjoy the same treatment as SCs


4
Nationals of United States of America, Switzerland, Liechtenstein, Norway and Iceland.

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Postby carteki » Wed, 25 Jan 2012 1:39 pm

Thank you for finding the link.
I'm surprised that this hasn't been spoken about more widely :)

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Re: Some Nationalities Exempt from New Property Tax

Postby ksl » Wed, 25 Jan 2012 9:34 pm

carteki wrote:http://www.todayonline.com/Voices/EDC120107-0000033/When-foreigners-are-treated-as-Singaporeans

Random piece of news that popped up last week... It seems that because of the free trade agreements the citizens (all?) of United States, Switzerland, Norway, Liechtenstein and Iceland are treated as "locals" and therefore don't need to pay the new tax.

Interested to hear if anyone has more info.

Cheers
Kim


I wouldn't get too excited about what you read in papers about free trade as it probably doesn't cover properties or land! Like in most Countries local laws still apply, and it's quite possible that Singapore opted out of certain clauses to protect it's home interests and property is of major national interest and security which wouldn't be open to free trade discussion. Otherwise the Country would have been purchased long ago :lol:

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Postby zzm9980 » Wed, 25 Jan 2012 10:03 pm

KSL, look at the link I posted. It's straight out of an IRAS document.

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Re: Some Nationalities Exempt from New Property Tax

Postby JR8 » Wed, 25 Jan 2012 10:06 pm

ksl wrote:I wouldn't get too excited about what you read in papers about free trade as it probably doesn't cover properties or land! Like in most Countries local laws still apply, and it's quite possible that Singapore opted out of certain clauses to protect it's home interests and property is of major national interest and security which wouldn't be open to free trade discussion. Otherwise the Country would have been purchased long ago :lol:

Did you read ZZMs link to IRAS?

Apparently not!




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Re: Some Nationalities Exempt from New Property Tax

Postby ksl » Wed, 25 Jan 2012 10:24 pm

JR8 wrote:
ksl wrote:I wouldn't get too excited about what you read in papers about free trade as it probably doesn't cover properties or land! Like in most Countries local laws still apply, and it's quite possible that Singapore opted out of certain clauses to protect it's home interests and property is of major national interest and security which wouldn't be open to free trade discussion. Otherwise the Country would have been purchased long ago :lol:

Did you read ZZMs link to IRAS?

Apparently not!





I did click on the link and nothing happened, just tried again and it opened, the guide is for everyone not specific at all to those countries mentioned or have i missed something.Purchase Made by One Buyer
Whether ABSD is payable and which ABSD rate to apply depends on the profile of the buyer, in terms of his residency status and the count of residential properties owned by him.
Any foreigner and non-individual would have to pay ABSD rate at 10% each time they buy a residential property regardless of the number of properties owned.
A Singapore PR who has at least one count of residential property owned by him would have to pay ABSD rate at 3% for each additional residential property bought by him.



What I mean is that restrictions are in place already and the free trade agreement signed by countries doesn't have any legal weight if a Country has opted out on property and land. I say this because Denmark has restrictions in place to prevent Germans buying up the land and homes, as they have no beaches in Germany and many have complained of the free trade agreements. But local laws still prevent or restrict foreigners purchasing.

Free trade agreements don't guarantee free trade in property and land, if it effects national interests. and may not allow none residents to purchase
Last edited by ksl on Wed, 25 Jan 2012 10:39 pm, edited 1 time in total.

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Postby zzm9980 » Wed, 25 Jan 2012 10:39 pm

Read section 9.3 of the guide, followed by footnote 4 on the same page. It specifically mentions the case of FTA exemptions, and then lists the countries that have FTAs that exempt their citizens from paying the stamp duty. It even tells them how to seek relief.




9.3 Foreigners under Free Trade Agreements (FTAs)
Foreigners of certain nationalities4 who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.
Such buyers are required to submit an application for remission so as to enjoy the same treatment as SCs


4
Nationals of United States of America, Switzerland, Liechtenstein, Norway and Iceland.

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Postby ksl » Wed, 25 Jan 2012 10:41 pm

zzm9980 wrote:Read section 9.3 of the guide, followed by footnote 4 on the same page. It specifically mentions the case of FTA exemptions, and then lists the countries that have FTAs that exempt their citizens from paying the stamp duty. It even tells them how to seek relief.




9.3 Foreigners under Free Trade Agreements (FTAs)
Foreigners of certain nationalities4 who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.
Such buyers are required to submit an application for remission so as to enjoy the same treatment as SCs


4
Nationals of United States of America, Switzerland, Liechtenstein, Norway and Iceland.
Yes agreed thanks.

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Postby JR8 » Wed, 25 Jan 2012 10:44 pm

ksl wrote:
zzm9980 wrote:Read section 9.3 of the guide, followed by footnote 4 on the same page. It specifically mentions the case of FTA exemptions, and then lists the countries that have FTAs that exempt their citizens from paying the stamp duty. It even tells them how to seek relief.




9.3 Foreigners under Free Trade Agreements (FTAs)
Foreigners of certain nationalities4 who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.
Such buyers are required to submit an application for remission so as to enjoy the same treatment as SCs


4
Nationals of United States of America, Switzerland, Liechtenstein, Norway and Iceland.
Yes agreed, though my concern is more of any local laws implemented to prevent this.



If there were why would they publish this suggesting the opposite, just this January in an IRAS leaflet!

You been cycling in the sun too much KSL, or is it the triple-distilled 'Ol' Crusty' vinegar ;)

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Postby ksl » Wed, 25 Jan 2012 11:00 pm

JR8 wrote:
ksl wrote:
zzm9980 wrote:Read section 9.3 of the guide, followed by footnote 4 on the same page. It specifically mentions the case of FTA exemptions, and then lists the countries that have FTAs that exempt their citizens from paying the stamp duty. It even tells them how to seek relief.




9.3 Foreigners under Free Trade Agreements (FTAs)
Foreigners of certain nationalities4 who fall within the scope of the respective FTAs will be accorded with the same treatment as SCs.
Such buyers are required to submit an application for remission so as to enjoy the same treatment as SCs


4
Nationals of United States of America, Switzerland, Liechtenstein, Norway and Iceland.
Yes agreed, though my concern is more of any local laws implemented to prevent this.



If there were why would they publish this suggesting the opposite, just this January in an IRAS leaflet!

You been cycling in the sun too much KSL, or is it the triple-distilled 'Ol' Crusty' vinegar ;)
This is Singapore plenty of cock ups occur, though i must admit i was thinking more in lines of home security. Imagine if they allow anyone to purchase as many properties as they want, like they do in the UK, it wouldn't be long before Singapore was sold off to it's enemies/competitors. Denmark prevented the Germans and others from purchasing the beach summer houses and private homes with local laws, against the Free trade agreements :lol:

The UK councils on the other hand were giving extremely high discounts for government owned property
Last edited by ksl on Wed, 25 Jan 2012 11:06 pm, edited 1 time in total.

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Postby Strong Eagle » Wed, 25 Jan 2012 11:04 pm

I believe all the restrictions on foreign ownership are still in place... all that has changed is that some are exempt from the new taxes.

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Postby zzm9980 » Thu, 26 Jan 2012 9:47 am

I don't think the percentage of foreigners buying property from those countries are high enough to be a big concern.

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Postby carteki » Thu, 26 Jan 2012 11:44 am

Strong Eagle wrote:I believe all the restrictions on foreign ownership are still in place... all that has changed is that some are exempt from the new taxes.

+1


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