Tag Archives: Inland Revenue Authority of Singapore

Additional Buyer’s Stamp Duty (ABSD) for Married Couples

Inland Revenue Authority of Singapore (“IRAS”) informed that there had been instances of wrong advice given by salespersons to buyers. Some salespersons had advised their buyers that they could qualify for ABSD remission if the buyer is a Singapore Citizen (“SC”) who is married and is purchasing a second residential property in his sole name.

IRAS clarified that the above is not true. For a Singaporean married couple (defined as a married couple with at least one party being a SC) who purchase a second residential property jointly, the couple could qualify for ABSD remission only if certain conditions are met.

Please refer to the briefing slides attached for the detailed criteria.
Additional Buyer’s Stamp Duty (ABSD) for Married Couples – IRAS

980 buildings exempted from property tax

The Inland Revenue Authority of Singapore (IRAS) granted full or partial property tax exemptions to 980 buildings in 2013 from 650 buildings in 2000, according to media reports.

Uncollected taxes from these buildings reached around $94 million last year compared to $25 million previously. This translates to about $96,000 for each property versus the $38,400 seen 14 years ago.

These figures imply the steep increase in exempted taxes was caused by higher property values rather than more exemption grants, said PropNex CEO Mohamed Ismail.

“In the last decade or so, property prices have gone up multifold… with values driven up by demand and supply, and the increase in population.”

“We are land scarce, and those who want land have to constantly compete with someone who is willing to pay top dollar, so there will be an increase in land prices, and as land prices go up, so will property values and the taxable amounts,” he added.

Under the law, there are two types of properties eligible for tax exemption namely, places of religious worship and buildings “fulfilling purposes conducive to social development.”

The former includes churches and mosques, while the second category is “limited to public facilities that directly benefit the public at large,” said an IRAS representative. But due to confidentiality, the agency cannot name these tax-exempt buildings.