Singapore Seller’s Stamp Duty (SSD): What You Need to Know

If you’re planning to sell a property in Singapore, understanding Seller’s Stamp Duty (SSD) is crucial. SSD is a tax levied on sellers who sell their property within a specified holding period. It’s designed to discourage property speculation and promote a stable real estate market.

Who Pays SSD?

The Seller’s Stamp Duty is payable by the seller of the property. It applies to residential properties, including Housing and Development Board (HDB) flats, private apartments, and landed properties.

Holding Period and SSD Rates

The holding period refers to the duration you’ve owned the property. As of March 11, 2017, the SSD rates are as follows:

• Held for 1 year or less: 12% of the property’s selling price or market value, whichever is higher.
• Held for more than 1 year but not more than 2 years: 8% of the property’s selling price or market value, whichever is higher.
• Held for more than 2 years but not more than 3 years: 4% of the property’s selling price or market value, whichever is higher.
• Held for more than 3 years: No SSD is payable.

It’s important to note that the holding period begins from the date of purchase (acceptance of the Option to Purchase or Sales and Purchase Agreement) and ends on the date of sale (acceptance of the Option to Purchase or Sales and Purchase Agreement).

Exemptions from SSD

There are certain situations where SSD may be exempted. Some common exemptions include:

• Bankruptcy: If the sale is a result of bankruptcy.
• Divorce: If the transfer of property is pursuant to a divorce order.
• Death: If the property is transferred to beneficiaries upon the owner’s death.
• HDB Compulsory Acquisition: If the property is acquired by the government for public purposes.

This is not an exhaustive list, and other exemptions may apply. You should consult with a property lawyer or the Inland Revenue Authority of Singapore (IRAS) for a complete list and specific advice.

Calculating SSD

To calculate the SSD payable, simply determine the holding period and apply the corresponding SSD rate to the higher value between the selling price and the market value of the property. For example, if you sell your property after holding it for 18 months and the selling price is $1,000,000, the SSD payable would be 8% of $1,000,000, which equals $80,000.

Payment of SSD

The SSD must be paid within 14 days of the date of sale. Failure to pay the SSD on time may result in penalties and interest charges.

Importance of Professional Advice

Navigating the complexities of SSD can be challenging. Seeking advice from a qualified property lawyer or tax consultant is highly recommended to ensure you understand your obligations and minimize potential liabilities.