Singapore changed stamp duty rate regime

Singapore changed stamp duty rate regime

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. The following tax changes to Singapore’s stamp duty rate regime were announced by Minister for Finance, Mr. Tharman Shanmugaratnam, in his Budget Statement for the Financial Year 2014, which was delivered in Parliament on 21 February 2014.

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.

 

Stamp Duty Rates for Leases executed on or after 22 February 2014 will be as follows:

Lease Period

Stamp Duty Rates

Up to 4 years

0.4% of the total rent for the entire period of the lease

Exceeding four years or for any indefinite term

0.4% of four times of the average annual rent for the entire period of the lease

Stamp Duty Rates for Land Premiums and Property Purchase 

Buyer's stamp duty (BSD) is calculated by applying the BSD rates to the purchase price or market value of the property, whichever is higher. On and after February 22, 2014, the BSD rates will be as follows: 

Purchase Price or Market Value
(whichever is higher)

Buyer's Stamp Duty Rates

first SGD180,000

1%

next SGD180,000

2%

remainder

3%

Stamp Duty Rates for Share Transfers and Mortgages

In like fashion, on or after 22 February 2014 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 will be as follows:

Type of Instrument

Stamp Duty Rates

Transfer of stock or shares

0.2% of the purchase price or market value of the stock or shares transferred, whichever is higher

Mortgage instruments

0.2% or 0.4% of the relevant amount (depending on the type of mortgage instrument) subject to maximum duty of $500

For an e-Tax Guide explaining the stamp duty changes, please see the Inland Revenue Authority of Singapore (IRAS) website.

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