The Buyer Stamp Duty (BSD) is an essential aspect of property transactions in Singapore. As of 15 February 2023, the Singapore government has revised the BSD rates. This article provides a clear understanding of these changes, the conditions under which BSD remission can be granted, and other key information about BSD.

Updated Buyer Stamp Duty (BSD) Rates

The Buyer Stamp Duty (BSD) rates have been updated for both residential and non-residential properties. Below is a table illustrating the BSD rates effective from 15 February 2023:

BSD Rates Table

Purchase Price or Market Value BSD Rate for Residential Properties BSD Rate for Non-Residential Properties
First S$180,000 1% 1%
Next S$180,000 2% 2%
Next S$640,000 3% 3%
Next S$500,000 4% 4%
Next S$1,500,000 5%
Remaining amount 6% 5%

 

Example Calculation for a Residential Property

For a residential property purchased at S$2,500,000, the BSD would be calculated as follows:

Purchase Price Bracket Rate Calculation BSD Payable
First S$180,000 1% 1% of S$180,000 S$1,800
Next S$180,000 2% 2% of S$180,000 S$3,600
Next S$640,000 3% 3% of S$640,000 S$19,200
Next S$500,000 4% 4% of S$500,000 S$20,000
Next S$1,000,000 5% 5% of S$1,000,000 S$50,000
Total BSD Payable S$94,600

Key Information from IRAS

  • BSD is applicable to all property purchases in Singapore.
  • It is calculated based on the higher of the purchase price or market value.
  • The rates are tiered and differ for residential and non-residential properties.
  • For multiple property acquisitions under a single contract, BSD is calculated on the total purchase price.
  • Special remission rules apply for residential land acquired for non-residential development.
  • BSD must be paid within 14 days of signing the Sale & Purchase Agreement if signed in Singapore, or within 30 days if signed overseas.
Remission Conditions for Buyer Stamp Duty (Applicable to Acquisition of Residential Land for Non-Residential Development)

Acquisition of Residential Land for Non-Residential Development

Acquisitions of residential land for non-residential development may qualify for BSD remission under certain conditions:

A. BSD Remission for Acquisition of Residential Land with Use Restriction

  • A specific percentage of the GFA must be developed/used for non-residential purposes.
  • The property must not be developed/used for residential purposes.
  • Immediate notification to IRAS if any part of the property is used for residential purposes.
  • Submission of relevant documents to IRAS within 14 days of acquisition.
  • Payment of the remitted BSD amount if the property is used for residential purposes or if regulatory approval for residential development is granted.

B. BSD Remission for Acquisition of Residential Land without Use Restriction for 100% Non-Residential Development

  • The property must not be developed/used for residential purposes.
  • Immediate notification to IRAS if the property is used for residential purposes.
  • Submission of documents upon obtaining TOP or CSC.
  • Payment of the remitted BSD amount if the property is used for residential purposes or if regulatory approval for residential development is granted.

Application for Remission

To apply for remission, submit an online application with supporting documents via the e-Stamping Portal within 14 days from the date of acquisition.

Conclusion

The recent update in BSD rates and the conditions for remission are crucial for anyone involved in property transactions in Singapore. Understanding these changes helps in planning and managing the financial aspects of property purchases. For personalized advice and the latest information, consulting with a qualified Real Estate Consultant or the Inland Revenue Authority of Singapore (IRAS) is recommended.

Frequently Asked Questions (FAQs)

1. What is Buyer Stamp Duty (BSD)?

BSD is a tax imposed on documents executed for the purchase of property in Singapore. It applies to both residential and non-residential properties.

2. Who needs to pay BSD?

BSD is payable by anyone who purchases property in Singapore, including citizens, permanent residents, and foreigners.

3. How are the BSD rates calculated?

BSD rates are calculated based on a tiered structure, which is applied to the purchase price or market value of the property, whichever is higher. The rates differ for residential and non-residential properties.

4. When is BSD payable?

BSD must be paid within 14 days after signing the Sale & Purchase Agreement if signed in Singapore, or within 30 days if signed overseas.

5. Can BSD be paid in installments?

No, BSD must be paid in full by the due date. It cannot be paid in installments.

6. Are there any exemptions or remissions available for BSD?

There are specific remission conditions, particularly for acquisitions of residential land intended for non-residential development. However, general exemptions are rare.

7. What happens if I fail to pay BSD on time?

Late payment of BSD can result in penalties, including fines and interest charges.

8. How do I pay BSD?

BSD is usually arranged and paid through your appointed conveyancing lawyer. It can also be paid online through the IRAS e-Stamping Portal or other approved payment methods.

9. Is BSD applicable for both new and resale properties?

Yes, BSD applies to all property transactions in Singapore, including both new and resale properties.

10. How does BSD differ from Additional Buyer Stamp Duty (ABSD)?

While BSD applies to all property buyers, Additional Buyer’s Stamp Duty (ABSD) is an additional tax that applies under certain conditions, such as for second and subsequent property purchases, or for foreign buyers.