SINGAPORE Law and Practice Contributed by: Dorothy Marie Ng, Monica Yip, Tay Peng Cheng and Tan Shao Tong, WongPartnership LLP
and 65% of the acquisition price or market value of the property (whichever is higher) is also pay - able for the purchase of residential property. In addition to the new 65% ABSD rate for entities, which came into effect on 27 April 2023, housing developers are also subject to an additional non- remittable ABSD rate of 5%, but a 35% rate may qualify for the remission of ABSD for the acquisi - tion of residential property for development and sale, subject to certain terms and conditions. In addition, with effect from 27 April 2023, acqui - sitions of residential property by a trustee to hold on trust are chargeable with ABSD (Trust) at the rate of 65%. While such ABSD (Trust) is payable upfront upon the transfer of residential property into a living trust, trustees may, within six months of the date of execution of the instru - ment, apply to the Inland Revenue Authority of Singapore (IRAS) for a refund based on the dif - ference between the ABSD (Trust) rate of 65% and the ABSD rate corresponding to the profile of the beneficiary with the highest applicable ABSD rate. Seller’s Stamp Duty Seller’s stamp duty (SSD) is payable by the seller for the disposal or sale of residential and indus - trial property if the property was sold within a period of up to three years after the acquisition thereof. Depending on the holding period of the property, the rate of SSD payable for the sale of industrial property ranges from 5% to 15% of the sale price or the market value of the property (whichever is higher), and the rate of SSD pay - able for the sale of residential property ranges from 4% to 12% of the sale price or the market value (whichever is higher). Licensed housing developers are not required to pay SSD when selling residential units that they have developed.
Where there is a transfer of shares, stamp duty – typically borne by the buyer – is payable on the actual price or net asset value of the shares, whichever is higher. The rate is 0.2%, or SGD0.2 for every SGD100 (or part thereof). Exemptions may apply in certain circumstances (eg, trans - fers between associated companies). Additional Conveyance Duty Where there is a transfer of equity interests in a property-holding entity (residential PHE) whose primary tangible assets, owned directly or indi - rectly, are residential properties in Singapore, additional conveyance duty (ACD) may be pay - able on the transfer. The ACD regime applies to the acquisition and disposal of equity interests in a residential PHE by an entity that is considered a significant own - er of the residential PHE, or that becomes one after the acquisition. Since 10 May 2022, trans - fers of equity interests in PHEs into living trusts will also attract ACD (Trust). If applicable, ACD is imposed on both the buyer and the seller in a transaction. ACD for buyers can range up to 71% of the value of the equity interests transferred for transfer instruments executed on or after 27 April 2023. ACD is pay - able in addition to the prevailing stamp duty of 0.2% for the transfer of shares in companies (see above). ACD for sellers is 12% of the value of the equity interests transferred. Sellers are not exposed to ACD if the equity interests disposed have been held for more than three years. The rates described above will similarly apply in the case of partial ownership transfers. Goods and Services Tax The sale of non-residential real estate is subject to goods and services tax (GST), currently at
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