On 7 December 2011, the Government announced the introduction of the Additional Buyer’s Stamp Duty (ABSD) to be paid by certain groups of people who buy or acquire residential properties (including residential land).
Starting 8 December 2011, affected buyers are required to pay ABSD on top of the existing Buyer’s Stamp Duty (BSD).
Affected Buyers
a) Foreigners and non-individuals
b) Singapore Permanent Residents (PR) who already own 1 or more residential properties, whether owned wholly, partially, or jointly with others
c) Singapore Citizens (SC) who already own 2 or more residential properties, whether owned wholly, partially, or jointly with others
The new ABSD is payable by affected buyers at fixed rates on the actual price paid or market value of the property whichever is the higher.
The ABSD rate will be 10% for (a), and 3% for (b) and (c), on the total price or market value of the property.
BSD continues to be payable by all property buyers at unchanged rates.
Effective Date of ABSD
ABSD will apply to Contracts or Agreements (whichever is earlier), or Documents of Transfer*, dated on or after 8 December 2011.
Where an Option To Purchase has been granted on or before 7 December 2011 and exercised thereafter on or before 28 December 2011, without any extension of the option validity period, ABSD will be remitted upon application.
*Where Contracts or Agreements are not applicable
Source: IRAS Website