Taxes on Property
BSD · ABSD · SSD · Property Tax (Annual Value) · GST · Income Tax on Rental · IRAS Rules
4.8aBuyer's Stamp Duty (BSD)
BSD applies to ALL property purchases — residential, commercial, and industrial. Calculated on the higher of purchase price or market value. Due within 14 days of exercising OTP.
| Purchase Price Portion | Rate | Max Tax on Portion |
|---|---|---|
| First $180,000 | 1% | $1,800 |
| Next $180,000 ($180K–$360K) | 2% | $3,600 |
| Next $640,000 ($360K–$1M) | 3% | $19,200 |
| Next $500,000 ($1M–$1.5M) | 4% | $20,000 — both residential & non-residential |
| Next $1,500,000 ($1.5M–$3M) — Residential | 5% | up to $75,000 |
| Above $1.5M — Non-residential (top rate) | 5% | no further increase |
| Above $3,000,000 — Residential | 6% | — |
Example: BSD on $1,500,000 condo
$180,000 × 1% = $1,800
$180,000 × 2% = $3,600
$640,000 × 3% = $19,200
$500,000 × 4% = $20,000
Total BSD = $44,600
4.8bAdditional Buyer's Stamp Duty (ABSD)
ABSD applies to residential properties only. Due within 14 days of exercising OTP. Calculated on the higher of purchase price or market value.
| Buyer Profile | 1st Property | 2nd Property | 3rd+ Property |
|---|---|---|---|
| Singapore Citizen (SC) | 0% | 20% | 30% |
| Singapore PR (SPR) | 5% | 30% | 35% |
| Foreigner | 60% | 60% | 60% |
| Entity (Company) | 65% | 65% | 65% |
→ HDB flat counts as 1st property — SC with HDB buying a condo = 2nd property = 20% ABSD
→ For married couples, the higher ABSD rate (lower citizenship status) determines the rate
→ Trustee buying residential property: 65% ABSD (same as Entity/Company)
→ Both BSD and ABSD due within 14 days of OTP exercise
ABSD Remission — Married Couples (SC + SPR, or SC + Foreigner)
A lower ABSD rate may apply by way of remission for SC+SPR or SC+Foreigner married couples purchasing as joint buyers. To qualify, they must produce:
- → Marriage Certificate
- → Acceptance of OTP
- → ABSD Declaration Form
The remission treats the SC+SPR couple as if they were both SCs for ABSD purposes — so 1st joint property = 0% instead of 5%.
ABSD Refund for 2nd Property — Sell 1st Within 6 Months
SC or SC+SC married couple buying a 2nd property pays 20% ABSD upfront. If they sell their 1st property within:
- → 6 months of purchasing the 2nd property (if 2nd property is completed/resale)
- → 6 months of TOP/CSC of the 2nd property (if 2nd is uncompleted)
→ The ABSD paid on the 2nd property can be refunded (minus a processing fee). If the 1st property is not sold in time, the ABSD is not refundable.
ABSD Automatic Remission — SC Buying HDB
When a Singapore Citizen buys an HDB flat (new or resale, including EC, DBSS, non-privatised HUDC), the ABSD remission is automatically granted — the HDB purchase is charged at the 1st-property ABSD rate (i.e., 0% for SC), regardless of how many other properties the SC already owns.
Example: SC couple owns 2 condos, buys HDB resale before selling
→ Both SC: ABSD = 0% (automatic remission, at least one SC)
→ Both SPR: ABSD = 5% (no remission)
FTA Nationals — Treated Same as SC for ABSD
Nationals of the following countries under Free Trade Agreements (FTAs) are accorded the same ABSD treatment as Singapore Citizens. Not automatic — must apply for remission.
ABSD for Housing Developers
Developers buying residential land pay 40% ABSD upfront (wef 16 Dec 2021). They may apply for remission of 35% (leaving 5% non-remittable), provided ALL of the following are met within the timelines:
- → Commence building works (piling/foundation/demolition) within 2 years
- → Complete construction within 5 years from land acquisition
- → Sell ALL units within 5 years from land acquisition
Budget 2024 update (wef 16 Feb 2024): if developer fails to sell ALL units at 5-yr mark, clawback is now graduated 25%–35% based on % of units sold (instead of full 35% clawback). Projects with ≥90% sold at 5-yr mark get the lower 25% clawback rate.
The 5% non-remittable ABSD is a permanent cost to developers.
4.8cSeller's Stamp Duty (SSD)
SSD is paid by the seller when disposing of property within 3 years of purchase. It discourages short-term speculation. Rate depends on property type and holding period.
Residential
Industrial
Commercial
4.8dProperty Tax & Annual Value
Annual Value (AV) — Key Rules
→ AV = estimated gross annual rent if let at market rate (IRAS assessment)
→ Applies even if owner-occupied (IRAS estimates notional rent)
→ AV of vacant land = 5% × estimated market value
→ Non-residential properties: flat rate 10% of AV
Owner-Occupied Residential — Progressive Rates (effective 1 Jan 2025)
| AV Portion | Rate |
|---|---|
| First $12,000 | 0% |
| Next $28,000 ($12K–$40K) | 4% |
| Next $10,000 ($40K–$50K) | 6% |
| Next $25,000 ($50K–$75K) | 10% |
| Next $15,000 ($75K–$90K) | 14% |
| Next $15,000 ($90K–$105K) | 20% |
| Next $15,000 ($105K–$120K) | 26% |
| Above $120,000 | 32% |
Non-Owner-Occupied Residential — Progressive Rates (effective 1 Jan 2024)
| AV Portion | Rate |
|---|---|
| First $30,000 | 12% |
| Next $15,000 ($30K–$45K) | 20% |
| Next $15,000 ($45K–$60K) | 28% |
| Above $60,000 | 36% |
4.8eIncome Tax on Rental Income
Rental income is taxable in Singapore and must be declared in annual income tax returns.
Allowable deductions against rental income:
- →Mortgage interest payments
- →Property tax
- →Fire insurance premiums
- →Maintenance fees and sinking fund contributions
- →Reasonable repairs and maintenance expenses
- →Agent commission for securing tenants
4.8fGoods & Services Tax (GST) on Property
| Transaction | GST Treatment |
|---|---|
| Sale of residential property | EXEMPT — out-of-scope supply |
| Rental of residential property (bare rent) | EXEMPT — out-of-scope supply |
| Sale of commercial / industrial property (GST-registered seller) | 9% GST applies |
| Rental of commercial / industrial property (GST-registered landlord) | 9% GST applies |
| Furniture & fittings in residential lease (GST-registered landlord) | 9% GST applies (only bare rent is exempt) |
| Estate agent commission (GST-registered agent) | 9% GST on commission |
Special Residential Categories — GST Exempt ONLY if BOTH conditions met:
① Main purpose is providing accommodation AND ② Minimum stay period = 6 months
Examples: Student hostels · Workers' dormitories · Home for the Aged · Serviced apartments (with min 6-month stays)
Mixed-use shophouse: commercial portion = GST taxable; residential portion = exempt
Agent Commission — GST Calculation
Net commission: $10,000
GST (9%): $900
Gross payable by client: $10,900
To find net from gross: net = gross ÷ 1.09
GST registration threshold: annual taxable turnover > $1,000,000.
4.8gStamp Duty on Mortgage
| Mortgage Amount | Calculation | Stamp Duty Payable |
|---|---|---|
| $80,000 | $80,000 × 0.4% | $320 |
| $125,000 | $125,000 × 0.4% | $500 (cap reached) |
| $500,000 | $500,000 × 0.4% = $2,000 → capped | $500 (maximum) |
| $1,000,000 | Would be $4,000 → capped | $500 (maximum) |
The cap at $500 means once the loan exceeds $125,000, the stamp duty is always $500.
4.8hProperty Tax Remission — Residential Property Under Works
Owners of residential properties undergoing certain works may qualify for property tax remission at owner-occupier rates for up to 2 years (from building plans approval to TOP/CSC).
| Type of Works | Remission | Condition |
|---|---|---|
| Demolish & Rebuild | Owner-occupier rates for up to 2 years | Replacement house must be owner-occupied for ≥1 year after TOP/CSC |
| Addition & Alteration (A&A) | Owner-occupier rates for up to 2 years | Same condition applies |
| Vacant Land / Development Site (for owner-occupation) | Owner-occupier rates for up to 2 years | Intended for owner-occupation after completion |
4.8iTrading in Properties — When Capital Gains Become Income Tax
Singapore has no capital gains tax. However, if IRAS determines a person is trading in properties (i.e., buying and selling with a profit-seeking motive), the gains become taxable income.
4 Criteria IRAS Uses to Determine "Property Trader"
- Frequency of transactions — repeated buying and selling of properties
- Reasons for acquiring and selling — profit-seeking intent at time of purchase
- Financial means — whether the person can hold the property long-term (lack of means suggests trading intent)
- Holding period — short holding period suggests trading rather than investment
| Classification | Tax Treatment |
|---|---|
| Long-term investor (capital appreciation) | No tax on gains (no capital gains tax in SG) |
| Deemed property trader | Gains taxed as income tax (at personal/corporate tax rate) |
4.8jOaths and Declarations Act — False Declaration of Transaction Price
The Oaths and Declarations Act (ODA) governs statutory declarations in Singapore. In property transactions, it becomes relevant when parties make formal declarations about the transaction price or facts to government authorities (e.g. IRAS for stamp duty, HDB for resale applications).
⚠ Why This Matters: Stamp Duty Evasion
Stamp duty (BSD/ABSD/SSD) is calculated on the higher of the purchase price or market value. Some buyers attempt to:
- Understate the transaction price in documents
- Falsely declare nationality or residential status to avoid ABSD
- Split payments into "cash-back" arrangements to reduce the stated price
All of the above constitute false declarations — a criminal offence.
| Item | Details |
|---|---|
| Legislation | Oaths and Declarations Act (Cap 211) |
| Offence | Knowingly making a false statutory declaration or statement |
| Maximum penalty | Fine up to $5,000 and/or imprisonment up to 3 years |
| IRAS powers | IRAS may investigate transactions suspected of price manipulation; can assess stamp duty based on market value |
| Stamp Duties Act s.33A | IRAS may disregard artificial arrangements used to avoid or reduce stamp duty; stamp duty assessed on true consideration |
| RES duty | Must not advise, assist, or facilitate a client in understating the transaction price; must ensure accurate price in all documents |
⚠ Exam Scenario Pattern
If a buyer asks the RES to record a lower price so that less ABSD is payable — the RES must refuse. Assisting in a false declaration exposes the RES to criminal liability under the ODA, and CEA disciplinary action under the CEPCC (misrepresentation, breach of professional standards).
Section Quiz
4.8 — Taxes on Property
11 questions · 90 seconds each · exam-style difficulty