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New stamp duty levied on the purchase and sale of residential property

New stamp duty levied on the purchase and sale of residential property

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THERE will be a new stamp duty levied on the purchase and sale of residential property in property holding entities (PHE).

Termed the Additional Conveyance Duty (ACD), it is aimed at significant owners of equities interest in PHEs that can include partnerships, trusts and companies. Upcoming executive condo launches include Hundred Palms Residences EC, Anchorvale Lane EC,  while existing ones include Parc Life , Signature At Yishun ,  Brownstone EC, Visionaire EC, Inz Residence, The Criterion EC and Northwave EC, The Terrace EC,  The Vales EC, , Sol Acres EC and The  Bellewoods EC. Hundred Palms EC details and Hundred Palms EC show flat will be available shortly.

This means that those entities whose primary residential properties in Singapore form at least 50 per cent of its tangible assets will be captured in this new requirement.

At the same time, the current holding period of the Seller's Stamp Duty will be shortened from four to three years.

These changes were announced by Second Minister for Finance Lawrence Wong in parliament today.

With the ACD, if a buyer who is currently a minority owner acquires interest in a PHE on or after March 11 such that his holding in the PHE is at least or more than 50 per cent, he will be levied the new stamp duty on a pro-rated basis on the equity that puts him over 50 per cent, in top of the share duty of 0.2 per cent.

If a buyer is already a significant owner before March 11, any additional equity interest acquired by him on or after March 11 will be subject to the ACD.

The buyers' ACD includes 1-3 per cent on value of underlying residential properties, and also a flat 15 per cent on the value of these properties, irrespective of whether he is a Singaporean, permanent resident, foreigner, or non-individual entity.

For sellers who are already significant owners, if the equity interest disposal is made on or after March 11 and within three years of acquisition, a flat rate of 12 per cent will be levied.


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