Ravi Chandran
The seller’s stamp duty will not be waived for those who did not sign the agreement to launch a collective sale. The Second Minister for Finance and Minister for National Development, Lawrence Wong, in confirming this in Parliament yesterday said: “If the sale occurs within the holding period, the seller’s stamp duty is applied, regardless of whether an individual owner consented to or opposed the sale.”
Mr Wong said that the sale and purchase agreement which the Collective Sale Committee (CSC) signs on behalf of all owners is binding. The CSC will only be authorised to sign the Agreement when it has the consent of 80 per cent of the owners of a private residential property which is facing en bloc sale.
Mr Wong was replying to Mr Lim Biow Chuan, MP for Mounbatten, who asked whether the seller’s stamp duty may be waived for those who did not sign the collective sale agreement.
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The Minister said that owners who do not consent to the en bloc sale on grounds like financial loss, can file their objections at the Strata Titles Board, which will look into them and make a decision.
The seller’s stamp duty (SSD) is payable on all residential properties and residential lands that are bought on or after 20 Feb 2010 and sold within the holding period. Whether seller’s stamp duty is payable and the rate will depend on:
- The type of property sold or disposed,
- The date of purchase or acquisition,
- The date of sale or disposal, and
- Rates applicable.
If a residential property is purchased on or after 20 Feb 2010, SSD is payable if the residential property is sold within the holding period. SSD is also payable if a residential property owner sells or disposes of the property which he or she previously acquired via the following manner:
| Manner of Acquisition | Date of Acquisition |
|---|---|
| Transfer pursuant to divorce | 1. Marriage Date; or
2. Date of original purchase of property; whichever is later. |
| Transfer pursuant to inheritance | Date of original purchase by the deceased |
| Transfer of HDB Flat within Family | Earliest date of acquisition of the flat by any of the existing owners, and who continually holds an interest in the flat from the time of acquisition to disposal |
For non-residential property that is re-zoned to residential or the permitted use is changed to residential, the date of acquisition of the property will be the date of rezoning or the change of use.
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The rates of seller’s stamp duty payable on residential property purchased on and after 20 Feb 2010 and sold within certain duration, are summarized in the table below:
| Date of Purchase or Date of Change of Zoning / Use | Holding Period | SSD Rate (on the actual price or market value, whichever is higher) |
|---|---|---|
| Between 20 Feb 2010 and 29 Aug 2010 (all inclusive) | Up to 1 year | 1% on first $180,000 2% on next $180,000 3% on remainder |
| More than 1 year | No SSD payable | |
| Between 30 Aug 2010 and 13 Jan 2011 (all inclusive) | Up to 1 year | 1% on first $180,000 2% on next $180,000 3% on remainder |
| More than 1 year and up to 2 years | 0.67% on first $180,000 1.33% on next $180,000 2% on remainder |
|
| More than 2 years and up to 3 years | 0.33% on first $180,000 0.67% on next $180,000 1% on remainder |
|
| More than 3 years | No SSD payable | |
| Between 14 Jan 2011 and 10 Mar 2017 (all inclusive) | Up to 1 year | 16% |
| More than 1 year and up to 2 years | 12% | |
| More than 2 years and up to 3 years | 8% | |
| More than 3 years and up to 4 years | 4% | |
| More than 4 years | No SSD payable | |
| On and after 11 Mar 2017 | Up to 1 year | 12% |
| More than 1 year and up to 2 years | 8% | |
| More than 2 years and up to 3 years | 4% | |
| More than 3 years | No SSD payable |
The seller’s stamp duty will be rounded down to the nearest dollar.
SSD is computed by applying the requisite SSD rate on the higher of the selling price or the market value of the property as at the date of sale or disposal. Where parts of the property was acquired by the vendor at different times, the holding period for each part acquired will be computed from the respective acquisition date. Where the sale or disposal comprises only a partial interest in the residential property, SSD payable will be based on the higher of the selling price or market value of the partial interest.
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Replying to another parliamentary question of “what has been the number of sellers of residential properties who paid Seller Stamp Duty (SSD) year on year since SSD was implemented; of these numbers, how many of them are Singaporeans who own only one residential property; and whether the Ministry will consider exempting Singaporeans who own only one residential property from SSD,” the Minister replied in writing saying:
“Since the Seller’s Stamp Duty (SSD) was implemented in 2010, only about 5% of all transactions in the secondary market, or approximately 5,000 transactions, were liable for SSD. Out of these, approximately 40%, or 2,000 transactions, involved sale by Singaporeans owning only one residential property.
The SSD is intended to discourage short-term holding of residential properties, and is part of the Government’s measures to ensure a stable and sustainable property market. This principle applies to all sellers of property, regardless of the number of properties they own at the point of sale.”
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