Stamp Duty

hillion residences stamp duty

When do I have to pay Stamp Duty on my document?

Stamp Duty needs to be paid once the document is signed:

  • Within 14 days after the date of the document if the document is signed in Singapore or
  • Within 30 days after the date of its receipt in Singapore if the document is signed overseas

If stamp duty is not paid on the document within the 14 or 30 days (whichever is applicable), there will be penalties payable in addition to the Stamp Duty amount.

Penalties for Late or Insufficient Stamping

You are required to stamp documents within:-

  • 14 days from the date of execution if the document was signed in Singapore;
  • 30 days of its receipt in Singapore if the document was signed overseas.

A penalty of up to 4 times may be imposed if documents are stamped late or insufficiently stamped.

Examples on when you are required to stamp your document:

i. The document was signed in Singapore on 01/02/2009. You are required to stamp your document by 15/02/2009. Stamping done on or after 16/02/2009 is late.

ii. The document was signed overseas on 01/02/2009 and was first received in Singapore on 10/06/2009. You are required to stamp your document by 10/07/2009. Stamping done on or after 11/07/2009 is late.

Informing IRAS voluntarily on omission or underpayment of stamp duty

If you come forward voluntarily to fully disclose on the omission or underpayment, IRAS is prepared to accord a reduced penalty of 5% per annum calculated on a daily basis on the stamp duty payable. The voluntary disclosure must be made before the initiation of an audit review or query from IRAS.

The reduced penalty is also  subject to the following:-

  • A minimum penalty of $10 is imposed on a document that is stamped within 3 months from the due date;
  • A minimum penalty of $25 is imposed on a document that is stamped after 3 months from the due date.

Cooling Measures for the Residential Property Market
The Government has announced a comprehensive set of measures to cool the residential property market. Below are some of the measures introduced, that take effect on 12 Jan 2013.

a) Additional Buyer’s Stamp Duty will be imposed on SPRs buying their first residential property
b) The Mortgage Servicing Ratio will be capped at 30% and 35% of borrower’s gross income for bank loans and HDB loans, respectively
c) SPR flat owners will not be allowed to sublet whole flat
d) SPR flat owners must sell their HDB flats after buying a private residential property.

These measures are calibrated to be tighter on property ownership for investment. Financing conditions for housing have also been tightened to discourage over-borrowing and instil greater financial prudence among buyers.

Please click here to view the joint press release. More details on the cooling measures can also be found at the HDB InfoWEB atwww.hdb.gov.sg.

loan to value ratio

 

Additional Buyer’s Stamp Duty (ABSD)

Changes to Additional Buyer’s Stamp Duty (ABSD)

Rate on 1st purchase 2nd purchase 3rd & subsequent purchase
Singapore citizens No change 7% 10%
Permanent residents 5% 10% 10%
Foreigners and non-individuals 15% 15% 15%

 

Additional Housing Measures for Permanent Residents (PRs)

PRs owning HDB Flats Must Sell their Flat after Purchase of Private Residential Property in Singapore

From 12 January 2013, PR households must dispose of their HDB flats within six months of purchasing a private residential property in Singapore. PR households who had earlier been allowed by HDB to own a private residential property in Singapore prior to 12 January 2013 will not be required to sell their HDB flats. However, if they buy another private property in Singapore on or after 12 January 2013, they must sell their HDB flats. Please see Table A.

 

Table A: Disposal of existing HDB flat upon purchase of private property in Singapore by PR households Type of Private Residential Property in Singapore Treatment
Completed PR flat owners must dispose their HDB flat within six months of completion of purchase of the private property.
Uncompleted PR flat owners must dispose their HDB flat within six months of granting of Temporary Occupation Permit or Certificate of Statutory Completion, whichever is earlier2.

2 This applies even if the PR flat owner had disposed of the uncompleted private residential property before the granting of Temporary Occupation Permit or Certificate of Statutory Completion.

Please refer to the MAS or IRAS website for the details about the changes to ABSD, including the conditions for remission.