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Parliamentary Replies

Liability of Investors for Additional Buyer's Stamp Duty and Other Taxes for Owning Multiple Properties

Topics

Tax-Related (Others)

Tax-Related (Stamp Duty)

4 October 2023

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Parliamentary Question by Ms He Ting Ru:

To ask the Deputy Prime Minister and Minister for Finance with regard to investment products purporting to offer fractional ownership of Singapore residential properties (a) what is the Additional Buyer’s Stamp Duty (ABSD) treatment of the investment vehicle; and (b) whether the investors are liable for ABSD and other taxes associated with owning more than one property.

Parliamentary Reply by Deputy Prime Minister and Minister for Finance, Mr Lawrence Wong:

Stamp duty is a tax on documents that effect a transfer of interest in immovable property, and unlisted stocks or shares in Singapore. 

Buyers directly acquiring residential property in Singapore will have to pay Buyer’s Stamp Duty (BSD) of up to 6%, and Additional Buyer’s Stamp Duty (ABSD) of up to 65%, based on their ABSD profile. 

On the other hand, those who acquire shares in a Property Holding Entity (PHE)[1], pay Share Duty and Additional Conveyance Duties (ACD), if the relevant thresholds are met for the latter. ACD for acquisitions comprises BSD of up to 6% and ABSD at a flat rate of 65%.

Whether property-related investment products are subject to stamp duty ultimately depends on how the specific product and transaction is structured. If an investor does not receive any beneficial interest or ownership of the underlying property, such as when the investment only entitles the investor to a part of the income generated by the property but not ownership of the property itself, then the investor will not be liable for stamp duty. Investors should consider both tax and non-tax consequences when making their investment decisions. 

The Government will continue to monitor the property market closely and adjust our policies as necessary to promote a stable and sustainable property market.

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[1] A PHE is an entity that has at least 50% (i.e. asset ratio) of its total tangible assets comprising prescribed immovable residential properties in Singapore.

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