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Buyer’s Stamp Duty (BSD) Rates to be Raised for Higher-Value Properties
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Tax-Related (Stamp Duty)
14 February 2023
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The Government announced today that the top marginal Buyer’s Stamp Duty (BSD) rate for residential and non-residential properties will be raised to enhance the progressivity of the BSD regime.
2. For residential properties, the portion of the value of the property in excess of $1.5 million and up to $3 million will be taxed at 5%, while that in excess of $3 million will be taxed at 6%; up from the current rate of 4%.
3. For non-residential properties, the portion of the value of the property in excess of $1 million and up to $1.5 million will be taxed at 4%, while that in excess of $1.5 million will be taxed at 5%; up from the current rate of 3%.
4. The revised BSD rates will apply to all properties acquired on or after 15 February 2023. Table 1 summarises the adjustments to the BSD rates.
Table 1: Current and Revised Marginal BSD Rates
Higher of Purchase Price or Market Value of the Property | Marginal BSD Rate | |||
|---|---|---|---|---|
Residential Property | Non-Residential Property | |||
Rates on or before 14 February 2023 | Rates on or after 15 February 2023 | Rates on or before 14 February 2023 | Rates on or after 15 February 2023 | |
First $180,000 | 1% | 1% | 1% | 1% |
Next $180,000 | 2% | 2% | 2% | 2% |
Next $640,000 | 3% | 3% | 3% | 3% |
Next $500,000 | 4% | 4% | 4% | |
Next $1,500,000 | 5% | 5% | ||
Amount exceeding $3,000,000 | 6% | |||
5. There will be a transitional provision, where the BSD rates on or before 14 February 2023 will apply for cases that meet all the conditions below:
a) The Option to Purchase (OTP) was granted by sellers to potential buyers on or before 14 February 2023;
b) This OTP is exercised on or before 7 March 2023, or within the OTP validity period, whichever is earlier; and
c)This OTP has not been varied on or after 15 February 2023.
6. Correspondingly, the Additional Conveyance Duties for Buyers (ACDB), which applies to qualifying acquisitions of equity interest in property holding entities (PHEs[1]), will be raised from up to 44% to up to 46%.
7. For more information, please visit www.iras.gov.sg .
Issued by:
Ministry of Finance
Singapore
14 February 2023
[1] A PHE is an entity which has at least 50% (i.e. asset ratio) of its total tangible assets comprising prescribed immovable properties in Singapore. Please refer to IRAS’ website for more details on PHEs and prescribed immovable properties.