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Seller Stamp Duty (SSD) – Residential Properties

This is a tax which IRAS will levy on the selling price (or valuation whichever is higher) of the property when you sell it within the “minimum holding period” to deter property flipping.

 

 

 

 

The Date of Purchase is based on (not the date of issuance for OTP or S&P)

  1. Exercised Date of Option to Purchase (OTP) or
  2. Signed Date of Sales & Purchase Agreement (S&P) or
  3. Date of transfer where (1) & (2) is not applicable

If the Date of Purchase is On and After 11 March 2017, the following SSD rate applies

 Rate
Year 112%
Year 28%
Year 34%
Year 4 onwards0%

If the Date of Purchase is 14th January 2011 to 10 March 2017, the following SSD rate applies

Holding PeriodRate
Year 116%
Year 212%
Year 38%
Year 44%
Year 5 onwards0%

In a slightly more complication scenario where part shares purchase is involved. Here is how SSD will be computed.

Alan bought the property in Jan 2016. In April 2017, Alan decided to sell 30% share of the property (valued at $1,000,000) to his sister Jane.

30% share = $300,000 sold in year 2 of the “holding period”.

Alan has to pay a SSD rate of 12% of $300,000 = $36,000.

In June 2018, Jane decided to sell half of what she owns in the property (valued at $1,100,000) to her husband Roy.

Shares value = 50% x 30% x $1,100,000 = $165,000

As Jane sold some of her shares in year 2 (from her purchasing the shares), SSD of 8% applies on the $165,000 = $13,200.

 

Side Note: SSD payment amount will be rounded down to the nearest dollar.

The 2 main remission (waiver) categories for SSD are

  1. Selling Inherited properties. The inheritors can apply to IRAS to treat SSD rate counting from the date of purchase (by the deceased) instead of the transfer date to the inheritors.
  2. Selling Matrimonial property by divorce court order. E.g Court ordered husband to sell his 50% share of the property (bought just 1 year ago) to his ex-wife at $xxx.

 

 

 

This is just a guide, please contact your lawyer or accountant for tax matters.

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