Global

Details

  • Service: Tax, International Corporate Tax, Global Indirect Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 5/31/2012

Singapore - Does additional buyer’s stamp duty apply for non-residential construction? 

May 31:  A policy change made in late 2011 provided for the imposition of additional buyer’s stamp duty on any purchase of residential property by a company or individual who was a non-Singapore citizen or a non-Singapore permanent resident.

For Singapore citizens or permanent residents, the additional buyer’s stamp duty (or ABSD) only applies with respect to the purchase of a third or second residence, respectively.


The tax policy behind the imposition of this additional tax was to curb the escalation of prices of residential property in Singapore, by means of imposing additional acquisition costs on a would-be purchaser. See TaxNewsFlash-Asia Pacific: Singapore - Additional buyer’s stamp duty on purchases of residential property affects property developers


What has not been clear is whether the additional buyer’s stamp duty applies with respect to a non-residential unit that is being constructed in a mixed-use development. The position of the tax authorities is that the additional buyer’s stamp duty does apply. However, it has been observed that this position does not follow the tax policy—in that non-residential units are not the target of the additional buyer’s stamp duty.


To read a May 2012 report on this issue, prepared by the KPMG member firm in Singapore: Does ABSD apply to non-residential unit under construction and differential premium? (PDF 835 KB)




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