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Frequently Asked Questions
Purchase by Singapore Citizens (SC)
1. I am a SC currently owning only one private apartment. I am considering to sell it and to buy a terrace house. Do I have to pay ABSD when I buy the terrace house?
If you have contracted to sell your only apartment before you exercise the Option to purchase the terrace house, you do not need to pay ABSD.
But if you have not contracted to sell your apartment, your purchase of the terrace house will be your second property on which you need to pay ABSD at 7%.
2. I am a SC currently owning a private flat. If I were to downgrade to a HDB resale flat, do I have to pay ABSD on the HDB resale flat?
As HDB’s rules require buyers to dispose of their private properties within 6 months from the completion date of HDB resale flats, ABSD remission will be given upfront to purchasers of HDB flats. You do not need to pay ABSD when you buy the flat.
For more information on the conditions, please refer to remission/ refund.
3. My wife and I are SC and we jointly own an apartment. We intend to jointly purchase a terrace house that is under construction. Do we need to pay ABSD?
The ABSD of 7% is payable as the terrace house will be your second property. However if you dispose of your apartment within 6 months from the date of TOP/CSC (whichever is earlier) of the terrace house, you may be eligible for the refund of the ABSD.
For more information on the conditions, please refer to remission/ refund.
4. My wife and I are SC and we jointly own one semi-detached house. I also inherited a 10% share of another flat from a deceased relative. If I now buy a condominium unit together with my son who does not own any property, do we have to pay ABSD on the purchase of the condominium unit?
Ownership of a partial interest in a property will add to the count of property owned by you. Thus you would have owned two residential properties before you purchase the condominium unit. The purchase of the condominium unit with your son will be your third residential property. Hence you and your son would have to pay ABSD at 10% on the purchase price/value of the condominium unit even though this will be your son’s first residential property.
5. I am a SC currently owning only a 20% share in a house co-owned with my mother. Should my mother transfer her 80% share of the house to me, do I need to pay ABSD? If I were to buy another private flat after that, what would be the ABSD rate?
You would have owned one residential property before your mother transfers her share to you. However the transfer of the 80% share of the same property to you would not add to the count of properties owned by you and hence would not be subject to ABSD. However, BSD is still payable on the acquisition of 80% interest in the property. Your subsequent purchase of the private flat would be your second property which would attract the ABSD rate of 7%.
6. I am a SC and I do not own any residential property. If I were to buy two units of flats together in one single deal from the developer, can both units be treated as my first property purchase so that I do not have to pay ABSD? If not, how would ABSD be levied and on which unit?
It does not matter that the properties are bought in one contract. You are buying two residential properties. You may select any one of the two units to be charged at the ABSD rate at 7% while the other would not be subject to ABSD.
7. I am a SC and I co-own a house with my mother. My husband who is also a SC does not own any residential property. If we buy our first matrimonial home jointly, do we need to pay ABSD?
The matrimonial home will be your second property and therefore both of you would have to pay ABSD at 7% even though it will be your spouse’s first property. However you may be eligible for the ABSD refund if you dispose of your interest in the house that is co-owned with your mother within 6 months from the date of purchase/TOP/CSC (whichever is applicable) of your matrimonial home.
For more information on the conditions, please refer to remission/ refund.
8. I am a widow and I jointly own a terrace house with my son. We are both SC. We intend to downgrade to a private flat. Can we apply for ABSD refund if we dispose of the house within 6 months from the purchase of the flat?
You will not qualify for ABSD refund as the refund is only for purchase of second residential property by Singaporean married couples. You will need to dispose of your terrace house if you wish to avoid paying ABSD on your next purchase.
Purchase by SC and others (Singapore Permanent Residents and Foreigners)
9. I am a SC married to a SPR. We jointly own a private flat. If we buy another house jointly, what is the ABSD payable by us?
The purchase of the house will be your second property for both yourself and your spouse. As your spouse is a SPR, both of you would have to pay ABSD at 10% of the purchase price/value of the house. However you may be eligible for the ABSD refund if you dispose of your first property within 6 months from the date of purchase/TOP/CSC (whichever is applicable) of your second property.
10. I am a SC married to a SPR. We jointly own a 3-room HDB flat. If we upgrade to a 5-room flat, do we need to pay ABSD?
As HDB’s rules require buyers to dispose of their existing flats within 6 months from the possession of new HDB flats, ABSD remission will be given upfront. You do not need to pay ABSD when you buy the 5-room HDB flat.
11. I am a SC married to a SPR. We jointly own a 5-room HDB flat. If we upgrade to a private flat, do we need to pay ABSD?
The purchase of the house will be your second property for both yourself and your spouse. As your spouse is a SPR, both of you would have to pay ABSD at 10% of the purchase price/value of the house. However, you may be eligible for the ABSD refund for second residential property if you and your spouse dispose of the HDB flat within 6 months of the date of purchase/TOP/CSC (whichever is applicable) of your private flat.
For more information on the conditions, please refer to remission/ refund.
12. I am a SC married to a SPR. Both of us do not own any property in Singapore. If we jointly purchase our first matrimonial home, do we need to pay ABSD?
SPRs are required to pay ABSD at 5% if they buy their first residential property on their own or jointly with SC. However if both you and your SPR spouse do not own any property and the matrimonial home is the only residential property owned by you and your spouse, you are eligible for the ABSD remission for spouses.
For more information on the conditions, please refer to remission/ refund.
13. I am a SC and my wife is a FR. We jointly own one apartment which is our first matrimonial home and no other property. Would we be eligible for the ABSD remission if we upgrade to a terrace house and sell the apartment within 6 months of our purchase of the terrace house?
If you are able to fulfill all the conditions for ABSD refund for purchase of second property, the ABSD of 15% paid will be refunded to you.
For more information on the conditions, please refer to remission/ refund.
Purchase by non-SC (ie SPR and Foreigners)
14. I am a SPR buying my first HDB resale flat. Do I need to pay ABSD?
From 12 Jan 2013, SPR buying the first residential property including HDB flat would have to pay ABSD at 5%.
15. I am a SPR owning one private apartment. If I downgrade to a HDB resale flat, do I need to pay ABSD on the HDB flat?
As HDB’s rules require buyers to dispose of all their private properties within 6 months from the completion date of the HDB resale flats, the ABSD remission will be given upfront. You only need to pay ABSD at 5% instead of 10% when you buy the HDB flat.
16. I am a SPR owning a HDB flat. If I upgrade to a private condominium unit, do I need to pay ABSD on the condominium unit?
Yes, you need to pay ABSD of 10% as it is your second property.
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.
18. I am buying an apartment to be held in trust for my friend who is a Hong Kong citizen and who does not own any property in Singapore. Does ABSD apply as I am a SC?
When you buy the apartment as a trustee, you are required to declare the identity of the beneficiary, who is the intended owner. Since the beneficiary in this case is a foreigner, the ABSD rate of 15% applies.
Property Type
19. I am buying a HDB shophouse with living quarters. Is ABSD payable?
ABSD is payable only on the apportioned value of the living quarters. You may get a professional valuer to value the living quarters or you may request IRAS to adjudicate the value by paying an adjudication fee and valuation fee.
20. I am buying a strata shop unit in a condominium development. Is ABSD payable?
If the strata unit is permitted to be used as a shop, ABSD is not payable.
21. I am buying a mixed-use development on land zoned ‘Residential’. Is ABSD payable?
As the land is zoned ‘Residential’ and hence the development is capable of being developed or used for fully residential purposes, ABSD is payable.
22. I am buying a semi-detached house which has been approved as a child care centre for three years. Is ABSD payable?
ABSD is payable as this is a residential property and the use as a child care centre is only a temporary permitted use.
Property Count
23. I am a SC owning one house in Malaysia but none in Singapore. Is ABSD payable when I buy my first residential property in Singapore?
Only residential properties in Singapore are included in the property count which is used to determine ABSD liability. As this is your first residential property in Singapore, ABSD is not payable.
24. I only own a three-storey shophouse which comprises a ground floor shop and two separate residential units on the second and third storeys. They are held under one title. What is the count of residential properties owned by me?
As the two residential units are physically separate units they are counted as two units owned by you even though they do not comprise separate titles.
25. I am a SC. My only house has been gazetted to be compulsorily acquired by the Government. If I buy another residential property now, do I need to pay ABSD?
Properties gazetted for compulsory acquisition will be excluded from the count of properties. As such, your count of properties owned is zero and hence ABSD will not be payable on your purchase of the next residential property.
Purchase of Residential Sites by Developers
26. If our company buys a plot of residential land to build 6 units of terrace houses, do we need to pay ABSD on the land purchase?
Since your company is building more than 4 residential units, ABSD remission may be granted upfront if your company gives the necessary undertaking to fulfill the qualifying conditions.
For more information on the conditions, please refer to remission/ refund.
27. After we have been granted the ABSD remission upfront, is there any penalty if we are unable to fulfill any of the qualifying conditions, eg delay in building completion beyond the 5-year period?
If any of the conditions is not fulfilled, ABSD will be clawed back with interest and will become payable immediately eg upon the expiry of the 5-year period. Any delay in the payment will be subject to the usual late payment penalty.
28. If after we have been granted the ABSD remission upfront we decide to sell the development site, would ABSD be clawed back?
If the land is resold, ABSD will be clawed back with interest and become payable immediately since your company has failed to fulfill the condition to develop and sell all the units in the development.
29. Are residential units in the project sold to staff, directors, subsidiaries and related companies considered as due disposal?
Yes, they are considered as due disposal. The stamp duty payable should be based on the price or market value of the property, whichever is higher.
30. For a residential site that is developed in phases, do the conditions for remission apply to each phase at a time or to the entire site?
The conditions for remission apply to the entire site that was bought for any development. Hence if only part of the entire site is to be developed within the 5-year timeframe, the entire site would not qualify for the ABSD remission.
31. For claw back of ABSD with interest, how is interest calculated?
Interest is calculated at a rate of 5%* per annum commencing from 14 days after the date of acquisition of the site.
* Subject to review.
32. Is ABSD payable on the lease extension premium that we paid to the State? If yes, can the ABSD be remitted?
ABSD is payable on documents executed on payment of lease extension premium.
Any request for remission will be considered subject to the developer giving similar undertaking pertaining to the development and disposal of the units within the stipulated timeframe as in the case of land purchase. If the land was purchased before the implementation of ABSD, the timeframe commences from the date of Letter of Acceptance of the lease extension.
Where the ABSD remission has already been granted on the purchase of the land prior to the payment of lease extension premium on the same land, the ABSD remission will similarly be extended to the lease extension premium paid without the need to provide another set of undertaking.
33. We have been granted ABSD remission upfront on the purchase of our first plot of residential land. If we now purchase an adjoining plot of residential land and combine it with our first plot so as to build a large single housing development on the two combined plots, do we need to pay ABSD on the purchase of the second plot? If yes, can the ABSD be remitted also?
ABSD is payable on the purchase of the second land plot if it is zoned ‘residential’. ABSD remission will be considered on a case by case basis and may be allowed subject to the condition that the whole development on the combined plots must meet the qualifying conditions for the ABSD remission of the first plot from the date of purchase of the first plot.
34. If my company intends to buy an old bungalow plot to build 4 units of terrace houses for sale. Are we eligible for the ABSD remission?
Remission for the smaller sites (4 units or less) is allowed on a case-by-case basis, based on the merits of the case, and subject to the conditions. For more information on the conditions, please refer to remission/ refund.
35. Our company owns an existing plot of residential land. If we now buy an adjoining State Land for amalgamation with our existing plot for so as to develop a housing development, can ABSD remission be granted for the purchase of the adjoining State Land?
ABSD is payable on the purchase of the adjoining State Land if it is residential land. You may apply for the ABSD remission upfront by providing the necessary undertaking to fulfill the qualifying conditions as in the case of any land purchase.
For more information on the conditions, please refer to remission/ refund.
Payment
36. When must BSD and ABSD be paid?
BSD and ABSD must be paid within 14 days from the date of the signed Contract or Agreement. Where the Contract or Agreement is executed (signed) overseas, BSD and ABSD must be paid within 30 days of the receipt of the Contract or Agreement in Singapore. A document is considered to be duly stamped only when stamp duty is fully paid. Audit checks will be conducted by IRAS to ensure that BSD and ABSD are duly paid. Under the Stamp Duties Act, a penalty of 4 times the amount of unpaid duty can be imposed.
37. I am eligible for the remission of ABSD for my purchase of residential property. Can I defer payment of both BSD and ABSD pending Commissioner’s approval of the remission?
You need to pay BSD within 14 days even if you are applying for remission of ABSD. If Commissioner’s approval is granted, a remission certificate for ABSD will be issued to you. You will be informed to pay the ABSD by a specified date if the Commissioner’s approval is not granted.
38. Can I pay Stamp Duty using my CPF funds?
Using CPF funds to pay Stamp Duty (including ABSD) is subject to terms and conditions under the Private Properties and Public Housing Schemes. To find out if you can use your CPF to pay Stamp Duty, you can visit
www.cpf.gov.sg or call CPF on 1800-227 1188 (Mondays to Fridays 8:00 am – 5:30 pm).
39. What if I do not have enough funds to pay ABSD? Can ABSD be deferred or paid by instalments?
Stamp duty is an upfront cost that a buyer has to consciously set aside when he decides to purchase a property. It must be paid in full and cannot be deferred. Inadequate payment or late payment of stamp duty is tantamount to non-stamping.
40. How do I pay ABSD?
Where BSD and ABSD are payable on the same document, you should pay both BSD and ABSD using the same form named Sale and Purchase of Immovable Property available at our e-Stamping website. The form is located under the header of ‘Sale & Purchase of Immovable Property’.
Others
41. If a seller were to backdate the date of offer of his Option upon the request of the buyer to avoid paying ABSD, is this an offence?
Yes, it is an offence under Section 62 of Stamp Duties Act to evade stamp duty by executing a document where facts and circumstances are not fully and truly set forth. Any person guilty of such an offence shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both.
42. I am a foreigner and the developer has offered me a 15% discount of the purchase price (by way of direct cash rebate or gift vouchers or other freebies) to help me offset the ABSD payable. I understand that this discount is only offered to foreigners. Is stamp duty payable based on the price before discount or after discount?
If the discount is not given to all buyers and the price paid by you is below the market value that the majority of the buyers pay, you are to declare the market value (which is the price before discount) and pay stamp duty based on the market value of the property.
43. I did not have to pay ABSD on the purchase of my new flat because I managed to sell my previous property just before the purchase of my new flat. However my buyer has now aborted the purchase of my previous property. Do I need to pay ABSD on my new flat now?
You are to disclose to IRAS the failed sale of your previous property and the circumstances of the aborted sale. Whether ABSD would be clawed back from you and what further action would be taken by IRAS would depend on the circumstances of the case. For information, the Commissioner of Stamp Duties may invoke the anti-avoidance provision under Section 33A of the Stamp Duties Act if there is reason to suspect that the sale of your previous property was fictitious and was schemed to avoid or reduce payment of ABSD.
http://www.iras.gov.sg/irashome/page04.aspx?id=12826
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