The Finance Minister in his Budget Statement 2018 has announced changes to the tax rate for buyers stamp duty for acquisitions of residential properties in Singapore.
The buyer’s stamp duty (BSD) is payable on the acquisition of immovable properties, based on the higher of the consideration or market value. BSD is also applicable to lease-related instruments1 where there is a premium.
Prior to 20 Feb 2018, the same BSD rates applied to both residential and non-residential properties.
With effect from 20 Feb 2018, the BSD rates would be differentiated between residential and non-residential properties, and the top marginal BSD rate for residential properties is creased from 3% to 4% and applied on the value of residential property in excess of S$1 million.
IRAS has published issued a new e-Tax Guide, Stamp Duty: Buyer’s Stamp Duty on Residential and non-Residential Properties which covers the changes on 19 February 2018.
Source: IRAS, 20 February 2018