The New Stamp Duty – how does it impact you

On 10th March 2017, Singapore government issued a joint press release under Ministry of Finance (MoF), Ministry of National Development (MND) and Monetary Authority of Singapore (MAS) to fine tune the property regulations and the new rules will take effect o the 11th March 2017.
The chronology of earlier regulations can be found here to get a full picture of the changes.

Seller Stamp Duty (SSD) to be adjusted


On or Before 10th March 2017:

On or After 11th March 2017

Year 1



Year 2



Year 3



Year 4


0% (Year 4 onwards)

Year 5 onwards


What this means is, the Seller stamp duty only applies to properties sold within the first 3 years. This means a shorter holding period for people buying properties.

Total Debt Servicing Ratio (TDSR) Waivers

On or Before 10th March 2017:

60% Total Debt Servicing Ratio rule applies for all properties.

On or After 11th March 2017: 

Properties with Loan-to-value less than 50%, TDSR rule of 60% no longer applies.

For example, a person who is 67 years old, he may own a property that has $200,000 in outstanding loan and a valuation of $2,000,000. This means that he can now go to the bank to use his property as pledge to loan up to 50% (or $1,000,000) of this property valuation of $2,000,000.

Scenario: – 


= $2,000,000

Outstanding loan

= $    200,000

CPF used



Additional Equity-term-loan this person can draw upon will be: –

Loan-to-value of 50% (loan)

= $1,000,000

Less outstanding loan

= $    200,000

Additional Cash out Equity-Term-Loan

= $    800,000

Such Cash out Equity-term-loan is no longer subjected to the regulated TDSR assessment criteria. It is now entirely up to the individual Singapore banks to decide what criteria to use and how much to lend.
Regulations and rules pertaining to ABSD and LTV limits will remain.
You may want to find out about how you can refinance home loan to obtain cash-out equity-term-loan.

Introduction of Additional Conveyancing Duties (ACD) on Property Holding Entities (PHE)
A new stamp duty called the Additional Conveyance Duty (ACD) will be effective on or after 11th March 2017. 
This regulation is targeting property holding entities such as investment holding companies, partnerships, trusts that holds on to residential properties with controlling stake above 50%.
There is additional conveyance duty for buyers (ACDB) and its associates that become controlling stake owners, i.e. owning 50% or above in shares of the entity.
And for sellers and its associates, Additional Conveyance Duty Seller (ACDS) is levied on those that already controls 50% or above in controlling stake.

The Additional Conveyance Duty Buyer (ACDB)
Buyer stamp duty (1% to 3%) on valuation
1% on the first $180,000
2% on the second $180,000
3% thereafter
15% on the entire value
The Additional Conveyance Duty Seller (ACDS) – if sold within 3 years. 
Flat rate of 12% of valuation

On top of that, IRAS continues to charge a stamp duty of 0.2% based on the net asset value of the firm.
This regulation applies largely to property developers, family offices, property investment holding companies, trusts and partnerships. If in doubt, write in to IRAS for the full definition.

Infographic: Additional Conveyance Duty (Buyer and Seller), IRAS
Photo credits: iCompareLoan, IRAS 

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