5月 17

Stamp duty Singapore agreement refers to the taxes that must be paid to the Inland Revenue Authority of Singapore (IRAS) when certain agreements are made. This includes the sale or transfer of property, lease agreements, and share transfers. Stamp duty is a mandatory tax that must be paid by the buyer or transferrer of the property. Failure to comply with this tax may result in legal penalties.

The stamp duty in Singapore is based on the market value of the property or the transfer price, whichever is higher. The rates vary depending on the type of agreement and the value of the property. The tax is paid by affixing a physical stamp onto the agreement document or by filing an electronic stamp duty certificate.

When buying or selling a property in Singapore, stamp duty can be a significant cost. It is therefore important to understand the stamp duty rates and the process involved.

For property sales and transfers, the stamp duty rates start from 1% for properties valued up to S$180,000, and goes up to 4% for properties valued above S$1,000,000. Additionally, there is an additional buyer`s stamp duty (ABSD) of 12% for foreigners, and 5-7% for Singaporeans and permanent residents, depending on whether they already have a property in Singapore.

For lease agreements, the stamp duty rates are based on the total rent amount for the duration of the lease. The rates start from 0.4% for lease agreements up to a year and go up to 3% for lease agreements above three years.

For share transfers, the stamp duty rates are 0.2% of the purchase price or the net asset value of the shares, whichever is higher.

It is important to note that there are certain exemptions and reliefs available for stamp duty in Singapore, such as for first-time homebuyers or transfers between family members.

In conclusion, understanding the stamp duty rates and process for agreements in Singapore is essential for those looking to buy or sell property or transfer shares. Failure to comply with the stamp duty regulations can lead to legal penalties, so it’s crucial to ensure that all necessary documents are correctly stamped and that the appropriate taxes are paid.