Are you considering buying a property in Singapore? If so, there are a few things you should keep in mind about the Additional Buyers Stamp Duty (ABSD). This tax is imposed on top of the purchase price of a property and varies depending on your nationality and whether you are purchasing your first or subsequent property. In this blog post, we will take a closer look at the ABSD and discuss some of the things you need to consider before buying a property in Singapore.
- What is ABSD Singapore and how does it work
The Additional Buyer’s Stamp Duty (ABSD) is a tax levied on the purchase of property in Singapore. The ABSD was first introduced in December 2011, and has since been revised several times. The current rates are as follows: 3% for Singaporean citizens, 5% for permanent residents, and 7% for foreigners.
ABSD Singapore is payable on the purchase price of the property, or the market value of the property (whichever is higher). It is also payable on the total amount of loans taken to finance the purchase of the property.
The ABSD is not payable if the property is being purchased for use as a HDB flat, or if the property is being transferred to a spouse/child/parent.
The ABSD is payable upfront, and must be paid within 14 days from the date of contract. If the ABSD is not paid within this timeframe, late payment interest will be charged at 0.25% per annum.
If a property is sold within 12 months of purchase, the ABSD will be refunded in full. If a property is sold after 12 months of purchase, the ABSD will be non-refundable.
- Who has to pay the tax and when do they have to pay it
The Additional Buyer’s Stamp Duty (ABSD) is a tax levied on buyers of properties in Singapore. The ABSD was first introduced in 2011, and has since been revised several times.
The ABSD is payable within 14 days of the completion of the purchase. If the buyer fails to pay the ABSD, they will be liable for a late payment penalty of 1% per month.
The ABSD is one of the many measures taken by the Singaporean government to cool the property market. By making it more expensive to buy properties, the government hopes to discourage speculative investing and encourage sustainable long-term growth.
For many potential buyers, the ABSD Singapore may be a significant barrier to homeownership. However, it is important to remember that the ABSD is only payable once, and does not apply to resale properties. As such, it should not be seen as a deterrent to those who are looking to own a home in Singapore.
- What are the consequences for not paying the tax
There are a number of consequences for failing to pay the ABSD. Firstly, buyers who fail to pay the tax within 14 days of purchase will be liable for interest charges at 2% per annum. Secondly, buyers who knowingly make false declarations in order to avoid paying the ABSD may be fined up to $100,000 or imprisoned for up to 3 years, or both. Finally, any property that is purchased without paying the ABSD will be liable for forfeiture.