Additional Buyer’s Stamp Duty Deadline Extension
02 Apr 2024Parliamentary Question by Mr Chua Kheng Wee Louis:
To ask the Deputy Prime Minister and Minister for Finance (a) whether an Additional Buyer’s Stamp Duty (ABSD) deadline extension was granted to the developer of the Cuscaden Reserve and, if so, what is the reason for the extension and the terms and conditions associated with it; and (b) what is the number of residential projects with ABSD deadline extensions granted since the implementation of the remission of ABSD rules for developers, excluding that granted to all developers during the COVID-19 pandemic.
Parliamentary Question by Mr Sitoh Yih Pin:
To ask the Deputy Prime Minister and Minister for Finance (a) whether Cuscaden Reserve is the first residential project in which the developers have been granted an Additional Buyer’s Stamp Duty (ABSD) deadline extension besides extensions that are granted as part of the temporary relief measures due to the COVID-19 pandemic; (b) if so, what are the reasons for granting the extension; (c) if not, what are the other projects which have been granted a similar extension; and (d) what are the criteria which IRAS applies in deciding whether to approve such a request.
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Parliamentary Reply by Deputy Prime Minister, and Minister for Finance, Mr Lawrence Wong:
Today, housing developers purchasing residential sites can qualify for an upfront remission of Additional Buyer’s Stamp Duty (ABSD), if they meet the specified timelines for commencement and completion of the housing development, and the sale of units within the residential development. These conditions for ABSD remission for housing developers ensure the timely commencement and completion of development, and sale of residential units, and encourage housing developers to bid for land prudently.
Requests for extensions to the specified timelines are considered by the Government on a case-by-case basis. I would not comment on individual cases, as the details include confidential taxpayer-specific information.
The vast majority of housing developers have met the sale timeline for ABSD remission, after taking into account the extension provided under the COVID-19 Temporary Relief Measures. A small group of developers have applied for an extension.
Excluding generally available extensions provided under the COVID-19 Temporary Relief Measures, 44 projects or 12% of projects with a sale deadline within 2021 to 2023, received an extension to their specified sale timeline. These appeals were approved as they involved extenuating circumstances, such as the developer facing site-specific delays that were unforeseen and beyond its control.