Singapore Simplifies Stamp Duty Rate Regime

By ExpatBriefing.com Editorial 27 February, 2014

The Inland Revenue Authority of Singapore (IRAS) has issued an e-Tax Guide explaining the stamp duty changes introduced in the Government's 2014 Budget on February 21.

In Singapore, stamp duty is payable on instruments relating to the acquisition, disposal, lease or mortgage of real estate property, and on the acquisition or mortgage of stocks or shares.

Budget 2014 switched the structure of buyer's stamp duty (BSD), share transfer duty, lease duty and mortgage duty from a Singapore dollar-based fixed rate structure to a percentage-based structure, effective February 22, 2014. In addition, with regard to lease duty, there are also changes to the basis of calculation to ensure consistency in stamp duty treatment across leases of different lease periods.

For example, BSD is calculated by applying the BSD rates to the purchase price or market value of the property, whichever is higher. The BSD rates before the 2014 Budget changes were a charge of SGD1 (USD0.79) for every SGD100 (USD79), or part thereof, up to SGD180,000; SGD2 for every SGD100, or part thereof, of the next SGD180,000; and SGD3 for every SGD100, or part thereof, of the remainder, if any.

On and after February 22, 2014, the BSD rates will be 1 percent for the first SGD180,000, 2 percent for the next SGD180,000, and 3 percent for the remainder.

In like fashion, share transfer duty, which is calculated by applying the share transfer duty rate to the purchase price or market value of the shares transferred, whichever is higher, was imposed at the rate of SGD0.20 for every SGD100, or part thereof. On and after February, 2014, the duty is payable at the rate of 0.2 percent of the purchase price or market value.

Tags: Tax | Investment | Real-estate Investment | Real-estate | Equity Investment | Singapore | Tax Rates | Stamp Duty | Expats | Tax |

 





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