What Is a Buyer Stamp Duty Singapore?
A buyer stamp duty Singapore represents a tax paid for when you excise option to buy any form of property. The buyer stamp duty affects all types of property in Singapore.
The amount you pay depends on the final purchase price. The conveyancing lawyer from the law firm that handles the property deal will determines the stamp duty payable after going through the option to purchase, and the legal team will inform on the time by which you must pay the stamp duty. To save time payment made on the day, you excise the option.
Who Pays What?
As the name implies, the buyer of a property pays the buyer stamp duty in Singapore. Calculate the amount you pay with a simple formula. The first $180,000 has a 1 percent buyer stamp duty. The next $180,000 has 2 percent. Anyone who buys a property for more than $360,000 pays 3 percent on anything over $360,000.
Then you add these three components together to reach the final buyer stamp duty you owe for private property that you had just purchase. Follow this example:
- $2 million purchase
- $1,800 for the first $180,000
- $3,600 for the next $180,000
- $49,200 on the $1.64 million after the initial $360,000.
- $54,600 due when all parties execute the purchase agreement for the property
Developers may incentivise the buyer stamp duty through various means. If the incentive is not cash, then the price remains the same without the deduction. The idea behind the seller offering a way to pay the buyer stamp duty in Singapore is to sweeten the deal ahead of a sale. This incentive is not required, apparently. The incentive is not evading tax but a marketing gimmes.
There are exemptions to who pays the buyer stamp duty in Singapore. When the government buys property, the government does not pay the buyer stamp duty. Additionally, a Singaporean citizen or company buying property outside of Singapore’s physical boundaries does not have to pay the tax on that property. Co-operative societies do not pay a stamp duty for business documents signed by, or on behalf of these entities. An estate of a bankrupt person or company does not pay the buyer stamp duty, either.
Paying Stamp Duties
Pay your buyer stamp duty in Singapore at a few locations in Singapore if you are not registered to use electronic payments. Pay with cash, cheque, cashier’s order, NETS/cashcard, eNETS or GIRO. You must pay the entire amount by the due date of the stamp duty as determined by the law firm overseeing the title transfer. Receive an e-stamp at various locations in Singapore, including Novena Post Office, Raffles Place Post Office, Robinson Road Post Office or the Chinatown Post Office.
The due date of the buyer stamp duty in Singapore is 14 days after the signing of the document if you sign the transfer of property in Singapore. The deadline is 30 days if you receive the paper in Singapore, but the document signed outside of Singapore. In addition to all of the other financial considerations for buying a property, don’t forget to set money aside to pay your buyer’s stamp duty after you sign the transfer documents. The law firm overseeing the buyer stamp duty in Singapore informs you of when and where you pay the stamp duty.
Cooling measures adopted a few years ago introduced the additional buyer stamp duty Singapore. The additional buyer stamp duty only comes into play when you purchase more than one property which adds on top of the just the buyer’s stamp duties.
Property Professional Here to Help
Does the buyer stamp duty sound confusing to you? Let an industry expert like Dylan Tan guide you through what it takes to buy private property in Singapore. Dylan can help you find your dream home or investment property, examine your financial standing and tap into his network of 2,600 property professionals as whenever you are ready to buy.
The buyer stamp duty is just one of many small details you must know about when it comes to buying property. You may not be familiar with everything you need to know, and that is okay because the purchase of a condo in Singapore is maybe a complicated process to some. Dylan puts you at ease from the first handshake and looking into your interest till the end. His professionalism and industry knowledge are top-notch. Let him go to work for you today.