Singapore imposes Stamp Duty on various transactions to generate government revenue and regulate financial activities. A clear understanding of the types of duties, applicable rates, calculation methods, and exemptions is essential for individuals and businesses engaged in relevant transactions.

Types of Stamp Duty in Singapore

Stamp Duty applies to the following transactions:

• Property Transactions: Charged on the transfer of immovable property, including sale and purchase agreements, leases, and mortgages.
• Shares and Securities: Applies to the transfer of shares and securities in Singapore-listed companies.
• Tenancy Agreements: Levied on tenancy agreements for rental properties.
• Loan Agreements: Imposed on loan agreements and debentures.
• Insurance Policies: Applies to specific types of insurance policies.

Rates and Calculation Methods

Property Transactions

There are three key types of Stamp Duty for property transactions in Singapore:

1. Buyer’s Stamp Duty (BSD)
   • BSD is payable on the purchase or acquisition of properties.
   • As of 15 Feb 2023, the top BSD rate is 6% for residential properties and 5% for non-residential properties.
2. Additional Buyer’s Stamp Duty (ABSD)
   • Imposed on the acquisition of residential properties, including residential land, from 8 Dec 2011 onward.
   • The April 2023 property cooling measures increased ABSD rates, with non-PR buyers facing a rate increase from 30% to 60%.
3. Seller’s Stamp Duty (SSD)
   • Applicable to the sale of residential properties (since 20 Feb 2010) and industrial properties (since 12 Jan 2013) within a specified holding period.

Shares and Securities

• Stamp Duty on the transfer of shares is 0.2% of the higher of the consideration or market value.

Tenancy Agreements

Stamp Duty for residential leases is based on the Average Annual Rent (AAR) and lease duration:

Exemptions and Reliefs

Certain transactions qualify for Stamp Duty exemptions or relief, such as:

• Transfers between family members
• Transfers due to divorce or death
• Corporate restructuring transactions

Filing and Payment

Stamp Duty should be paid before signing a document, or within the following timeframes to avoid penalties:

• Within 14 days of signing the document in Singapore
• Within 30 days of receiving the document in Singapore (if signed overseas)

Stamp Duty is typically paid electronically through the Inland Revenue Authority of Singapore (IRAS). Late payments may incur penalties.

Conclusion

Understanding Stamp Duty in Singapore is essential for property buyers, investors, and businesses. Keeping up with regulatory changes ensures compliance and better financial planning.

For expert advice on Stamp Duty obligations and exemptions, reach out to our tax professionals today.