Reduced Stamp Duty Tax on Speculative Property Investment in Singapore

Updated on March 24,2017
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Reduced Stamp Duty Tax on Speculative Property Investment in Singapore
Singapore reduced the stamp duty tax rates imposed on those properties which were being sold a short time after they were purchased. Investors who are interested in real estate transactions can talk to an accountant in Singapore to find out more about the taxes that apply when buying and/or selling properties.

The cut stamp duty tax

The stamp duty rates for certain types of property were reduced in Singapore. These will apply to speculative property investments, namely those properties that are being sold soon after they are purchased. Until the change, the seller’s stamp duty tax was payable by owners who sell the residential property within four years after the purchase. The applicable rate was between 4 and 16 percent of the total value of the property.

The new changes include both a reduction of the time period for the sale: from four years to three years and a reduction of four percent of the effective seller’s stamp duty rates (for each taxation level).

Our accountants in Singapore can give you further details in the taxation requirements for these real estate transactions.

Taxes for companies in Singapore

Companies in Singapore are taxed on their income derived from the city. Resident companies and individuals are taxed on their worldwide income while non-residents only on their Singapore-source profits.

The stamp duty is applicable only on financial transactions related to stock, shares and immovable property. Leases with an average annual rent below 1,000 SGD are exempt from the stamp duty. A buyer’s stamp duty, an additional buyer’s stamp duty, and a seller’s stamp duty apply. The seller’s stamp duty is subject to change while the buyer’s stamp duty will continue to apply when purchasing property in Singapore (1% for the first 180,000 SGD, 2% on the next 180,000 SGD and 3% afterward). The additional buyer’s stamp duty applies according to the buyer’s category.

You can contact our accounting firm in Singapore for more details on the taxes applicable to companies and tax compliance for corporations.