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Taxes and Fees

 

2.  Government Taxes

2.1  Stamp Duty 

       Stamp Duty are a tax on document   The following are types of  Stamp Duty on Buy/Sell transaction. 

 

      a)    Buyer Stamp Duty (BSD) 

     For all types of properties purchase transaction, the buyer is responsible to pay the Buyers Stamp Duty (BSD) to Inland Revenue Authority of Singapore within 2 weeks upon signing the Sale and Purchase Agreement.    

    The BSD is based on the Purchase Price or Market Value, whichever is higher: 

First $180,000  – 1%
Next $180,000 – 2%
Thereafter         - 3%

For the ease of calculation, if purchase price is more than $360,000, the
BSD =  3% of purchase price minus $5,400 

 

b)    Additional Buyer Stamp Duty (ABSD) 

The Additional Buyer Stamp Duty (ABSD) is a temporary measure, first introduced on 8 December 2011 to cool the property market.  It is only applicable for residential property only and the current rate depends on the buyers’ nationality and the number of properties owned.    

 

For foreginers, the  citizens and PRs (Permanent Residents) of a few countries below that have signed free trade agreements (FTAs) with Singapore are treated in the same category as SC and SPR for ABSD payment.   The countries are: 

·          Iceland 

·          Liechtenstein 

·          Norway 

·          Switzerland 

·          United States of America 

More details on ABSD and its FAQs can be found in  IRAS’s e-Tax guide on ABSD 

 

c)      Seller Stamp Duty 

The Seller Stamp Duty (SSD) is imposed on sellers who bought and sold the properties within a short holding period.  SSD is only applicable to the private residential and industrial property. The current rates are as follows: 

 

 

 d)  Stamp  Duty on Mortgages

These are documents that are prepared and signed when you obtain a loan from banks for your property purchase.  Stamp Duty is payable on the loan amount.  The person who obtains the loan (mortgagor) is responsible for paying the Stamp Duty on the mortgage document.   

The rate as per follows: 

Every $1,000 or part thereof:     $4    (Maximum duty payable is $500). 

 

2.2 Stamp Duty on Lease/Rental of Property

For lease/rental of property, the tenant is responsible to get the all the lease documents stamped by paying the approriate stamp duty. 

For documents executed on or after 22 Feb 2014, the stamp duty payable for leases with lease period of 4 years or less will be calculated based on the total contractual and other considerations or market rent, whichever is higher. For leases with lease period of more than 4 years, the stamp duty payable will be calculated based on 4 times the average annual rent (AAR).

 

 2.3.    Goods and Services Tax (GST)

GST is a broad-based consumption tax levied on the import of goods as well as nearly all supplies of goods and services in Singapore For GST purposes, the sale and lease of all properties other than residential properties are subject to GST.  

The current GST rate is 7%.  

GST cannot be financed by property loan, buyers will have to stump up cash to pay for it.  

 

For more on GST for real estate, please refer to the IRAS website 

 

2.4. Property Tax

The Singapore property tax is levied on property owners, depending on the projected rental value of the properties. The property tax must be paid in advance by 31 January each year.  

T he property tax rate on non-owner occupied properties in Singapore is a flat 10%.  

With effect from 1st January 2014 , the progressive property tax rates for owner-occupied residential properties are :

All the buildings or properties used exclusively for the following purposes are exempted from property tax, as per the Section 6(6) of the property tax act of Singapore: 

  • Properties promoting social development of Singapore
  • Properties for charitable purposes 
  • Public places for religious worship 
  • Government aided public schools 

 

2.5 Resale Levy

The Resale levey is only applicable to buyer of public HDB housing.   Those who have previously bought a flat from the HDB or taken a CPF Housing Grant will have to pay a resale levy if they plan to buy another new flat from the HDB.  The resale levy is meant to reduce the subsidy on the second subsidised flat so as to maintain a fair allocation of public housing subsidies between first- and second-timer citizen families.

Please refer to this HDB link for the applicable Resale Levy rates.

 

3. Other Fees

3.1 Conveyancing Fee

If you are buying a property, selling, mortgaging or merely refinancing a Singapore property, you would have to engage a law firm to assist you in the transaction

The Law Society of Singapore’s has a non-mandatory fee guidelines for conveyancing transactions .   In general, the conveyancing fee in Singapore should be within $4,000.

 

3.2 Agent Fee/Commission

While not mandatory, it is advisable that the service of a professional agent be engaged to help navigate through the regulatory requirements and to ensure a smooth property transaction process.   

There is no fixed fee or rates to be charged for all property transactions. All fees are subject to negotiation between the two parties involved.  As a matter of interest, the agent commission for the property industry in Singapore is much lower in percentage as compared to many other countries outside Singapore.  

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External Links

1. Buying an Executive Condo

2. Hot/Value Property FACTS for Singapore Residents