Stamp Duty

BSD is tax paid on documents signed when you buy or acquire property located in Singapore.

Manner of Acquisitions

Examples of property acquisition in which stamp duty is payable:  

1. By way of purchase e.g. acceptance to option to purchase, sale and purchase agreement
2. By way of gift including a voluntary declaration of trust and settlement
   • Declaration of Trust / Trust Deed:
     • A fixed duty of $10 is payable on the Declaration of Trust/Trust deed which does not result in a change in beneficial interest in the property. 
     • Where there is a change in beneficial interest in the property, full stamp duty (i.e. BSD, ABSD and SSD, whichever applicable) will be payable on the Declaration of Trust / Trust Deed.
3. By way of distribution in specie upon the winding up of a company
4. By way of distribution from the estate of a deceased that is not in accordance to the Will, Intestate Succession Act or Muslim Law of Inheritance.

Requirement to Pay BSD

You are required to pay BSD for documents executed for the transfer or sale and purchase of property located in Singapore. BSD will be computed on the purchase price as stated in the document to be stamped or market value of the property (whichever is the higher amount).

If there is a benefit associated with the acquisition, and the benefit is stated in the document to be stamped and is a cash discount (i.e. cash, non-post dated cashier’s order or cheque) to be given to the purchaser upon execution of the document (and not later), the amount of discount may be deducted from the purchase price to determine the consideration for stamp duty purpose. This is provided that the nett price is still reflective of market value. 

If the document to be stamped stated a non-cash benefit to be given (e.g. furniture voucher, rental guarantee, car or lucky draw), the value of benefit is not deductible from the purchase price for stamp duty purpose.  

If the cash or non- cash benefit is not stated in the document to be stamped, the value of the benefit is also not deductible from the purchase price for stamp duty purpose.

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 are not liable to stamp duty.

Acquisition of Property through an En-bloc Purchase or “Block” Purchase

Where multiple properties are acquired collectively, stamp duty will be calculated on the total purchase price of the multiple properties if:

1. There is a single contract for the purchase of the multiple properties; or
2. The purchases of the multiple properties are dependent and conditional on one another.

Stamp Duty on a Single Contract for Multiple Properties

Where there is a single contract for the purchase of multiple properties followed by individual documents for the purchase of each property, the single contract should be stamped at ad valorem duty based on the total purchase price.

Stamp Duty on Multiple Documents

Where there are multiple documents (with purchases which are dependent and conditional on one another), only one of the documents is required to be stamped at ad valorem duty, based on the total purchase price of all the related properties.

For more information, please refer to our e-Tax Guide on the Stamp Duty Treatment For The Acquisition of Multiple Properties (Second Edition) (PDF, 96KB).

Rates and Computation

BSD is computed based on the purchase price or market value of the property, whichever is higher.

Prior to 20 Feb, the BSD rate was up to 3%. With effect from 20 Feb, there are differentiated BSD rates between residential and non-residential properties. The BSD rate for acquisition of residential properties on or after 20 Feb is up to 4%.

For definition of residential or non-residential properties, click here.

The BSD rates before and after the 2018 Budget changes are as follows:

Before 20 Feb 2018
Purchase Price or Market Value of the Property	BSD Rates
First $180,000	1%
Next $180,000	2%
Remaining Amount	3%

On or after 20 Feb 2018
Purchase Price or Market Value of the Property	BSD Rates for residential properties	BSD Rates for non-residential properties
First $180,000	1%	1%
Next $180,000	2%	2%
Next $640,000	3%	3%
Remaining Amount	4%

BSD is rounded down to the nearest dollar, subject to a minimum duty of $1.

Examples

Example 1: Property was purchased on 1 Mar 2014 at $2,500,550 which is reflective of the market value

Market Value of the Property	BSD Rate	Calculation
First $180,000	1%	= $1,800 (1% x $180,000)
Next $180,000	2%	= $3,600 (2% x $180,000)
Remaining $2,140,550	3%	= $64,216.50 (3% x $2,140,550)
BSD	= $69,616.50 ($1,800 + $3,600 + $64,216.50)
BSD Payable (rounded down to the nearest dollar)	= $69,616

 Example 2: A condominium unit was purchased on 30 Mar 2018 at $2,500,550 which is reflective of the market value

Market Value of the Property	BSD Rate	Calculation
First $180,000	1%	= $1,800 (1% x $180,000)
Next $180,000	2%	= $3,600 (2% x $180,000)
Next $640,000	3%	= $19,200 (3% x $640,000)
Remaining $1,500,550	4%	= $60,022 (4% x $1,500,550)
BSD Payable	= $84,622 ($1,800 + $3,600 + $19,200 + $60,022)

Example 3: A vacant land zoned “Commercial and Residential” was purchased on 1 Mar 2018 at $20,000,000 which is reflective of the market value

Since the land is zoned “Commercial and Residential”, 60% and 40% of the gross floor area of the property is deemed attributable for residential and non-residential purposes respectively. BSD rates for residential and non-residential properties apply on the respective component.

Assuming that the breakdown of the purchase price is $8,000,000 for residential component and $12,000,000 for non-residential component, the BSD payable is: 

Market Value of the Property	BSD Rate	Calculation
For the residential component
First $180,000	1%	= $1,800 (1% x $180,000)
Next $180,000	2%	= $3,600 (2% x $180,000)
Next $640,000	3%	= $19,200 (3% x $640,000)
Remaining $7,000,000	4%	= $280,000 (4% x $7,000,000)
BSD for the residential component	= $304,600 ($1,800 + $3,600 + $19,200 + $280,000)
For the non-residential component
First $180,000	1%	= $1,800 (1% x $180,000)
Next $180,000	2%	= $3,600 (2% x $180,000)
Remaining $11,640,000	3%	= $349,200 (3% x $11,640,000)
BSD for the non-residential component	= $354,600 ($1,800 + $3,600 + $349,200)
BSD Payable	= $659,200 ($304,600 + $354,600)

Remissions

Acquisition of residential land for non-residential development

Acquisition of residential land (i.e. vacant land or entire building with land zoned “Residential”, “Residential/ Institution”, “White”, “Commercial & Residential” or “Residential with Commercial at 1st storey”) may qualify for upfront BSD remission (by way of the difference of the BSD rates for residential and non-residential properties) if the remission conditions are met. 

A. BSD remission for acquisition of residential land with use restriction

This is a BSD remission for acquisition of residential land that is restricted¹ from residential use/ development (e.g. where the entire site or part of the site must be developed for non-residential purposes). If remission is granted, the BSD rates for non-residential properties would apply on the entire site or the part of the site restricted from residential use/development.

The BSD remission may be considered, subject to the following conditions:

1. X%² of the gross floor area (“GFA”) of the subject property (as the case may be) must be developed/ used for non-residential purposes;
2. Not to develop and/ or use X% of GFA of the subject property for residential purposes;
3. Notify the IRAS immediately should any of the X% of GFA of the subject property be subsequently developed and/ or used for residential purposes;
4. Submit the following documents to IRAS within 14 days from the date of the acquisition:
   1. Technical Condition of Tender for the Government Land Sales site;
   2. Written Permission (“WP”) issued by URA for the redevelopment; or
   3. Any other documents or information that the Commissioner of Stamp Duties (“COSD”) may require in relation to the undertaking;
5. Pay to the COSD as a debt due to the Singapore Government an amount equal to the BSD remitted with immediate effect from the earlier of the following: 
   1. The date that any of the X% of GFA of the subject property is used for residential purposes; or
   2. The date that regulatory approval (e.g. WP) is granted for the development of residential units; and
6. Pay the amount recoverable by the COSD under condition (e) at the place stated and in the manner provided in a notice served by the COSD within one month after the service of the notice by the COSD.

 Notes
¹ Imposed by the relevant authorities.
² X% refers to the specific percentage (based on GFA) of the site that must be used/developed for non-residential purposes.

B. BSD remission for acquisition of residential land without use restriction for 100% non-residential development 

A buyer who acquires a residential land that does not have any use restriction¹ may wish to build a 100% non-residential development. In such case, he may qualify for BSD remission (by way of the difference of the BSD rates for residential and non-residential properties), subject to the following conditions:

1. Not to develop and/ or use the subject property for residential purposes;
2. Notify the IRAS immediately should the subject property be subsequently developed and/ or used for residential purposes;
3. Submit the following documents to IRAS within 14 days from the date of Temporary Occupation Permit (“TOP”) or Certificate of Statutory Completion (“CSC”), whichever is earlier:
   1. Written Permission (“WP”) issued by URA for the redevelopment;
   2. TOP or CSC issued by BCA; and
   3. Any other documents or information that the Commissioner of Stamp Duties (“COSD”) may require in relation to the undertaking;
4. Pay to the COSD as a debt due to the Singapore Government an amount equal to the BSD remitted with immediate effect from the earlier of the following:
   1. The date that the subject property is used for residential purposes; or
   2. The date that regulatory approval (e.g. WP) is granted for the development of residential units; and
5. Pay the amount recoverable by the COSD under condition (d) at the place stated and in the manner provided in a notice served by the COSD within one month after the service of the notice by the COSD.
   
   For other remissions, please click here.

Notes
¹ Imposed by the relevant authorities.

How to Apply

To apply for the remission, please submit an online application with the supporting documents via the e-Stamping Portal (select “Apply for Assessment/ Appeal/ Remission” under “Requests”) within 14 days from the date of acquisition.

List of Supporting Documents Required for Application of BSD Remission

1. Copy of the instrument
2. Copy of Letter of Undertaking to comply with all the remission conditions
3. Other documentary evidences listed within the remission conditions.