ABSD Remission/Refund

Tag: ABSD Remission/Refund,
View: 216

ABSD Remission/Refund

ABSD Refund/Remission

 

 

 

 

 

 

 

 

 

 

 

 

 

  • 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 10%) 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, 20% ABSD
If married, no ABSD

• Usually, foreigners would have to pay 20% 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 12% 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 15% ABSD, and sell the
1st and 2nd property. Can ABSD be refunded?

A: No. ABSD refund is only applicable for the 2nd property

Share

I need help with...