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Stamp duty fees on property purchase

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stiwi
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Stamp duty fees on property purchase

Postby stiwi » Mon, 17 Jun 2013 7:35 pm

I would like to understand better stamp duty fees in terms of who pays how much on 1st property purchase in Singapore:

Foreigners including residents on EP: 18%
Permanent Residents: 8%
Singaporeans: 3%

Are the above values correct?
Looks like something has changed within last 2 years or so as previously I don't recall agents saying anything more than 3% for foreigners.

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JR8
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Postby JR8 » Mon, 17 Jun 2013 7:46 pm

If what you say is right, it sounds ripe for 'creativity'.

In the UK Stamp Duty Land Tax (on purchases) is up to 5%, and this is recent legislation.

Putting a property into a corporate vehicle (Ltd co) and letting the Ltd Co, or conveying it (together with it's assets), can be quite tax efficient, if done right.

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Postby stiwi » Mon, 17 Jun 2013 7:53 pm

Apparently there are some "cooling measures" in place recently hence the charges. I was really surprised being told about these fees by agent today while visiting one of the showrooms. I just came back to Singapore after one year break and was completely unaware of this changes.

I googled a bit and it seems there was 10% (in addition to existing 3%) levy introduced one year ago but as it didn't slow down property prices, it was increased to 15%. I read about it here and here.

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Postby katbh » Mon, 17 Jun 2013 9:44 pm

From my memory it is not possible to put a LANDED property in a company name unless ALL directors are Singaporean. I assume they would apply the same criteria to a company being used to try to reduce duty.
It is my understanding that if two people buy a property, that the stamp duty is based in the 'worst' case. ie if an EP and a PR buy a property, duty will be calculated at the EP rate.

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PNGMK
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Postby PNGMK » Mon, 17 Jun 2013 9:59 pm

IF you're a US citizen not all those taxes/duties apply under the FTA.

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Postby PrimroseHill » Tue, 18 Jun 2013 9:58 am

Residential properties
Purchase price of property Rate of SDLT (percentage of the total purchase price)
£0 - £125,000 0%
£125,001 - £250,000 1%
£250,001 - £500,000 3%
£500,001 - £1 million 4%
Over £1 million - £2 million 5%
Over £2 million 7%
Over £2 million bought by corporate bodies 15%

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JR8
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Postby JR8 » Tue, 18 Jun 2013 12:40 pm

PrimroseHill wrote:Residential properties
Purchase price of property Rate of SDLT (percentage of the total purchase price)
£0 - £125,000 0%
£125,001 - £250,000 1%
£250,001 - £500,000 3%
£500,001 - £1 million 4%
Over £1 million - £2 million 5%
Over £2 million 7%
Over £2 million bought by corporate bodies 15%




Wrong bloody country darling!

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zzm9980
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Postby zzm9980 » Tue, 18 Jun 2013 3:32 pm

PNGMK wrote:IF you're a US citizen not all those taxes/duties apply under the FTA.


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

10.3 Foreigners under Free Trade Agreements (FTAs)
Foreigners of certain nationalities8
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 SC. While ABSD payment can be withheld pending approval of
remission, BSD cannot be withheld.

8
Nationals and Permanent Residents of Switzerland, Liechtenstein, Norway, Iceland and Nationals of United States of America.


from:
http://www.iras.gov.sg/irasHome/uploade ... dition.pdf


Also, from the FAQ:

17. I am a SPR. I am also a citizen of United States of America. There is a Free Trade Agreement signed between USA and Singapore. Which ABSD rate will apply to me when I buy my first residential property in Singapore?


You will be accorded the same treatment as a SC. You do not need to pay ABSD on your first property purchase. The ABSD rates of 7% and 10% will apply when you buy the second and additional residential properties respectively.

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JR8
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Postby JR8 » Tue, 18 Jun 2013 5:28 pm

zzm9980 wrote: The ABSD rates of 7% and 10% will apply when you buy the second and additional residential properties respectively.



Wow....so generous what (not!)?

stiwi
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Postby stiwi » Tue, 18 Jun 2013 5:45 pm

Unfortunately I am not a citizen of any mentioned countries, therefore no exemptions apply in my case.

On a side note, when is the stamp duty payable considering completion of development is scheduled in the next few years?

Does stamp duty apply also to second hand properties?

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zzm9980
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Postby zzm9980 » Tue, 18 Jun 2013 6:49 pm

JR8 wrote:
zzm9980 wrote: The ABSD rates of 7% and 10% will apply when you buy the second and additional residential properties respectively.



Wow....so generous what (not!)?


That's what the citizens get.

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zzm9980
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Postby zzm9980 » Tue, 18 Jun 2013 6:50 pm

stiwi wrote:Does stamp duty apply also to second hand properties?


Yes

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Stampo Duty in Singapore

Postby Sherlock Ho » Sun, 23 Jun 2013 9:56 am

I found this to be quite confusing too. I had been looking at properties recently with my recently divorced wife and my current Singaporean wife (separate occasions).

Its interesting to note that if you are a foreigner, they take the most denominator - the foreigner rate :(

On a separate note - theres an app for that called Stamp Duty.Sg that I found to be quite accurate :)

Good Luck.


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