Property Sales and Purchase |Property Lease | Mortgage
For Property Sales and Purchase
1.
What is Stamp Duty?
2.
If you have purchased a HDB Flat
3.
If you have purchased a completed property issued with Temporary Occupation
Permit (TOP) or land
4.
If you have purchased a property under construction
5.
If you have purchased a property by way of a sub-sale
6.
If you have acquired properties through an enbloc purchase or ‘block’
purchase
7.
If you have purchased a property and leased the property to the seller
(i.e. sale and lease-back)
8.
If you have sold an existing property / land and bought back units
developed by the purchaser (i.e. sale and buy-back)
9.What
are the stamp duty rates?
10.
Stamp Duty Computation
11.
Who has to pay stamp duty?
For Lease
12.
What are the stamp duty rates?
13.
Duty on Duplicate
14.
Stamp Duty Computation
15.
Up stamping of an existing lease
16.
Who has to pay stamp duty?
For
Mortgage
17.
Mortgage Stamp Duty
18.
Who is liable to pay stamp duty |
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You are
required to pay stamp duty for documents executed for a sale and purchase
of property. Stamp duty will be computed on the purchase price or market
value of the property (whichever is the higher amount).
The first
instrument executed relating to a sale and purchase is liable to ad valorem
duty (i.e. full duty). Subsequent document(s), relating to the same sale
transaction, is liable to nominal duty.
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2. If you have purchased a HDB Flat
You are required to pay stamp duty if you have executed document(s) for a
sale and purchase of a HDB flat. Stamp duty will be computed on the
purchase price or market value of the property, whichever is the higher
amount.
Document(s),
executed for a sale and purchase of a HDB flat, have to be stamped within14
days from the date of execution of document in Singapore.
If you
have purchased a resale HDB flat, the Acceptance to the Option to Purchase
has to be stamped within14 days from the date of HDB's in-principle
approval.
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3. If you have purchased a completed property issued with
Temporary Occupation Permit (TOP) or land
You are
required to pay stamp duty on the Acceptance Letter to the Option to
Purchase or Sale
and Purchase Agreement that you have executed (signed). Stamp duty will be
computed on the purchase price or market value of the property, whichever
is the higher amount.
All
documents have to be stamped within 14 days after the date of execution in Singapore.
Exception
For
documents executed for a purchase of property between 30 Jun 1998 to 14 Dec
2006, the stamp duty payable on the Acceptance Letter to the Option to Purchase
/ Sale and Purchase Agreement may be deferred within 14 days after the date
of transfer of the property, or within 14 days after the purchaser
contracts to sell his interest in the property, whichever comes earlier.
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4. If you have purchased a property under construction
Properties under construction are referred to properties, which have not
been issued with the Temporary Occupation Permit (TOP) or Certificate of
Statutory Completion (CSC).
You are
required to pay stamp duty on the Acceptance Letter to the Option to
Purchase or Sale
and Purchase Agreement that you have executed (signed) for a purchase of a
property under construction. All documents have to be stamped within 14
days after the date of execution of the agreement.
Exception
For
purchase of property (execution of document) between 30 Jun 1998 till 14
Dec 2006, stamp duty payable on the Acceptance Letter to the Option to
Purchase / Sale and Purchase Agreement may be deferred within 14 days after
the date the TOP is issued, or within 14 days after the purchaser contracts
to sell his interest in the property, whichever comes earlier.
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5. If you have purchased a property by way of a sub-sale
If you have purchased a property from the original purchaser (i.e. not the
developer), you are required to pay stamp duty on the Acceptance Letter to
the Option to Purchase or Sale and Purchase Agreement that you have
executed (signed).
You are
required to stamp the Acceptance Letter to the Option to Purchase or Sale or Purchase
Agreement within 14 days after the date of execution.
Example
You have
purchased a property from the developer and subsequently sub-sold the
property to another purchaser. In this case, stamp duty is imposed on
document(s) executed between the developer and yourself and document(s)
executed between yourself and the sub-purchaser.
Even
though the sale is for the same property, the parties to the contract and
purchase price are different and they are considered as two separate sale
transactions. Hence, stamp duty is imposed on each sale transaction.
Exception
For
documents executed before 15 Dec 2006, you are required to pay stamp duty
at the time when TOP is issued or sub-sale date, whichever comes first.
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6. If you have acquired properties through an enbloc purchase
or ‘block’ purchase
An enbloc
purchase or ‘block’ purchase is regarded as a single sale transaction,
notwithstanding that multiple documents may have been executed. Stamp duty
is therefore computed on the collective sale price or block purchase price
(i.e. total consideration).
If
multiple documents are entered into amongst the individual owners and
purchaser, one document has to be stamped, at ad valorem duty, based on the
total consideration. The remaining documents are to be stamped at a nominal
duty of $10 each.
You are
required to the stamp all documents within 14 days after the date of
execution.
For more
information, please refer to our e-Tax guide on the Stamp Duty Treatment
For Properties Acquired on an En Bloc or "Block" basis .
Example
If there
are 53 documents executed for an enbloc sale and purchase, one document has
to be stamped based on the total consideration.
The
remaining 52 documents are to be stamped at a nominal duty of $10 each.
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7. If you have purchased a property and leased the property to
the seller (i.e. sale and lease-back)
If you
have purchased a property and leased the property back to the seller, two
sets of stamp duty will be charged.
According
to Section 6 of the Stamp Duties Act (Cap 312), an instrument relating to
several matters is required to be stamped individually. In this instance,
one set of lease duty and another set of conveyance duty will be charged.
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8. If you have sold an existing property / land and bought
back units developed by the purchaser (i.e. sale and buy-back)
If you
have sold an existing property / land and bought back units developed by
the purchaser, two sets of stamp duty will be charged.
According
to Section 6 to the Stamp Duties Act (Cap 312), an instrument relating to
several matters is required to be separately stamped for each matter. In
this instance, two sets of conveyance duty will be charged.
Stamp Duty Based on the Purchase Price
or Market Value, whichever is higher
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Every $100 or part thereof of the first $180,000
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$1
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Every $100 or part thereof of the next $180,000
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$2
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Every $100 or part thereof of the remainder
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$3
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10. Stamp Duty Computation
An example of the computation of stamp duty is as follows :
If the Purchase Price is
$1,200,110, (round up to nearest hundred = $1,200,200)
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Every $100 or part thereof of the first $180,000
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($180,000 / $100) x $1
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$1,800
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Every $100 or part thereof of the next $180,000
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($180,000 / $100) x $2
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$3,600
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Every $100 or part thereof of the remainder
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($840,200 /
$100) x $3 |
$25,206
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Stamp duty payable
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$30,606
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11. Who has to pay stamp duty?
The
persons liable to pay stamp duty will be in accordance to the terms of
the document.
If the terms of the document are silent on this, under the Stamp Duties Act
(Cap 312), the transferee has to pay stamp duty and the transferor has to
pay the duty on duplicate.
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12. What are the stamp duty rates?
Stamp duty
for leases, involving a fixed rental throughout the rental period, will be
computed based on the gross rent.Thereafter, the appropriate rates of duty will be
applied depending on the term of the tenancy stated in the document.
Gross rent
will include the following :
- Base Rent per month
- Service Charge per month,
if any
- Maintenance Charges per
month, if any
- Advertising and Promotion
Charges per month, if any
- Furniture / Fittings
Charges per month, if any
- Other Charges per month,
if any
Stamp duty on leases is
computed on all charges (except GST) paid by tenant to landlord.
The stamp
duty rates are as follows :
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Where the lease
term is for a period
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Where the annual
rent exceeds $1000
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Up to 1 year
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More than 1 year and up to 3 years
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More than 3 years or for an indefinite
term
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For every $250/-
or part thereof of the average annual rent
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$1
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$2
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$4
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13. Duty on Duplicate
Duty on
duplicate is $2. This additional amount will be added to the stamp duty
payable.
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14. Stamp Duty Computation
An example
on the computation of stamp duty for leases involving fixed rental is as
follows: -
If the
base rent is $ 1,800 per month, the rent for furniture & fittings is $
500 per month, other charges are $140 per month, what is the stamp
duty?
Base Rent
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$1,800 per month
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Furniture & Fittings
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$500 per month
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Others
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$140 per month
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Total Gross Rent
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$2,440 per month
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1.
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To compute the average annual gross rent = $2,440 x 12
months = $29,280
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2.
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To determine how many parts of $250 in the annual
rent = $29,280 / 250 = 117.12 (round up to 118)
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3.
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Stamp
duty payable is :
If
the lease term is up to 1 year,
Stamp
Duty Payable = 118 x $1 = $118
If
the lease term is more than 1 year and up to 3 years,
Stamp
Duty Payable = 118 x $2 = $236
If
lease term is more than 3 years or for an indefinite term,
Stamp
Duty Payable = 118 x $4 = $472 |
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15. Up stamping of an existing lease
You can up
stamp a lease document if the rental contracted under a previously stamped
lease has increased. The lease term and parties involved in the tenancy
must remain the same. Stamp duty must have been paid on the
previous stamped lease document before up stamping can be done. Additional
stamp duty will be computed on the increase in rental.
For
example, the stamp duty paid on a previously stamped lease was $192 based
on the gross rent of $2,000 per month for 2 years. A lease document is
executed to reflect the increase in gross rent from $2,000 to $3,000 per
month for the remaining 6 months of the lease term of 2 years, the stamp
duty will be as follows :
- Total gross rent for 18
months = $2,000 x 18 months = $36,000
- Total gross rent for
remaining 6 months = $3,000 x 6 months = $18,000
- Average annual rent =
($36,000 + $18,000) / 2 years = $27,000
- Taking the difference
between the new average annual rent and the old annual rent =
$27,000-24,000 = $3000
- To determine how many
parts of $250 in the difference of annual rent = $3000 / 250 = 12
- Additional stamp duty = 12
x $2 = $24
You cannot
up stamp if the lease term and parties to the contract have changed. This
is regarded as a fresh lease and you have to pay the full duty.
The
persons liable to pay stamp duty will be in accordance to the terms of
the document.
If the terms of the document are silent on this, under the Stamp Duties Act
(Cap 312), the stamp duty will be borne by the tenant and duty on duplicate
will be borne by the landlord.
Mortgage
Based on the
amount of facilities granted on mortgage of immovable property or stocks
and shares
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Every
$1,000 or part thereof |
$4
(Maximum duty payable is $500) |
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18. Who is liable to pay stamp duty
The
mortgagor or obligor |
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