ABSD Remission/Refund
- Count of properties: Dependent on the date of contract (i.e. date of exercise of option)
- When there are multiple purchasers, higher ABSD applies
What is the difference between remission and refund?
• Remission: When ABSD does not need to be paid at all
• Refund: When ABSD needs to be paid, but can be claimed back later
ABSD Remission
Remission is applicable in the following scenarios:-
• Purchase of HDB flats and EC units
• Purchase by married couples
• Purchase by foreigners under Free Trade Agreements
A Singapore Citizen (SC) who purchases an HDB flat or EC as his first property does
not pay any ABSD. A Singapore PR (SPR) who purchases an HDB flat as his first
property pays ABSD of 5%.
ABSD remission is granted in the following scenarios:
•For purchase of HDB flat/new EC by a household which comprises SC(s) and
SPR(s) co-owners
• For purchase of HDB flat/new EC in cases where HDB grants the household a 6-
month or such other period as may be stipulated by HDB to dispose of its existing
property(ies)
• A lower ABSD rate of 5% (instead of 30%) will apply for purchase of HDB flat by
SPR household where HDB grants the SPR a 6-month or such other period as may
be stipulated by HDB to dispose of the existing property(ies)
• Usually, when there are multiple purchasers to a property, the higher
applicable rate applies. However, for married couples with at least one SC,
ABSD remission may apply (only for their first property).
Eg. SC-SPR buying first property
If not married, 5% ABSD
If married, no ABSD
Eg. SC-FR buying first property
If not married, 60% ABSD
If married, no ABSD
• Usually, foreigners would have to pay 60% ABSD. However, due to
free trade agreements that Singapore has with certain countries, their
nationals and/or residents are accorded the same treatment as SCs
• Nationals and Permanent Residents of:-
• Iceland
• Liechtenstein
• Norway
• Switzerland
• Nationals of:-
• United States of America
ABSD Refund
• Purchase of second residential property by a married couple involving
at least one SC spouse may qualify for ABSD refund subject to the
following conditions:-
• ABSD has been paid on the second residential property
• The first property (co-owned or owned separately) is sold within 6 months
from the date of purchase of the second property (if it is a completed
property) or TOP/CSC (whichever is earlier) of the second property (if it is an
uncompleted property)
• The married couple has not purchased or acquired a third or subsequent
property from the date of purchase of second property to the date of sale of
the first property
• Rationale: No need to pay ABSD if it is a matrimonial home
Procedure for Remission/Refund
• All applications for remission/refund (except for purchase of HDB flats
and new EC units) must be submitted to Commissioner of Stamp
Duties for consideration
• For purchase of HDB flats and new EC units, automatic remission
• Usually done by the solicitors for the purchasers
Scenerio 1
Q: A US citizen (who is also a SPR) buys his first property in Singapore. Is ABSD payable (and if so, how much)?
A: No ABSD payable. ABSD is remitted.
Scenerio 2
Q: Husband and wife (both Singaporeans) own one property. The
husband buys a 2nd property and pays 20% ABSD. They then sell
their 1st property. Can ABSD be refunded?
A: No. The 2nd property has to be owned by both husband and
wife.
Scenerio 3
Q: Husband and wife (both Singaporeans) own 2 properties. They
then buy a 3rd property together, and pay 30% ABSD, and sell the
1st and 2nd property. Can ABSD be refunded?
A: No. ABSD refund is only applicable for the 2nd property
Also check the Budget for 2023 Housing Policies.
Top 10 FAQ from CEA on ABSD Remission.
