Are you putting your property for sale in Singapore? Selling your property in Singapore can be challenging, especially when it comes to understanding the various taxes that apply to the sale. It’s essential to be aware of the property sales tax in Singapore to ensure that you comply with the laws and regulations of the country. This guide aims to provide you with a comprehensive understanding of the property sales tax in Singapore, so you can make informed decisions and avoid any surprises along the way.
Property sales tax in Singapore is straightforward to understand, although this might be challenging for foreigners facing property sales tax in Singapore for the first time. Those selling residential property in Singapore must pay Seller’s Stamp Duty (SSD). Sellers of commercial properties in Singapore might be required to charge Goods and Services Tax (GST) if they are a GST-registered entity.
Those who sell residential property in Singapore pay Seller’s Stamp Duty (SSD), the most crucial property sales tax in Singapore. The SSD rate sellers pay depends on the purchase date and holding period, with shorter periods incurring higher rates. Sellers pay the tax on the selling price or the market value, whichever is higher, within 14 days after the real estate transaction.
If someone bought different parts of a real estate object at other times, the time they’ve held each piece will be used to determine the SSD tax. You find an overview of the SSD rates of Singapore in the table below.
| Purchase date | Holding period | SSD rate |
|---|---|---|
| Between August 30, 2010, and January 13, 2011 | Up to 1 year | 1% on the first SGD 180,000 ($133,074) 2% on the next SGD 180,000 ($133,074) 3% on the remainder |
| More than 1 year | No SSD payable | |
| Between January 14, 2011, and March 10, 2017 | Up to 1 year | 1% on the first SGD 180,000 ($133,074) 2% on the next SGD 180,000 ($133,074) 3% on the remainder |
| Between 1 and 2 years | 0.67% on the first SGD 180,000 ($133,074) 1.33% on the next SGD 180,000 ($133,074) 2% on the remainder | |
| Between 2 and 3 years | Between January 14, 2011, and March 10, 2017 | |
| More than 3 years | No SSD payable | |
| Between January 14, 2011 and March 10, 2017 | Up to 1 year | 16% |
| Between 1 and 2 years | 12% | |
| Between 2 and 3 years | 8% | |
| Between 3 and 4 years | 4% | |
| More than 4 years | No SSD payable | |
| On and after March 11, 2017 | Up to 1 year | 12% |
| Between 1 and 2 years | 8% | |
| Between 2 and 3 years | 4% | |
| More than 3 years | No SSD payable |
There are several exemptions from the Seller’s Stamp Duty (SSD) for residential properties in Singapore:
These exemptions offer specific scenarios where the SSD tax does not apply, reducing the financial obligations of selling residential properties in Singapore.
Property sellers can pay the SSD via the e-Stamping Portal and perform the payment through several payment methods, such as GIRO for Stamp Duty, AXS, PayNow QR, Internet Banking Fund Transfer, or Cheque/Chashier’s Order.
Does a legal agent or law firm file your property sales tax in Singapore? They must fill in a Seller’s Stamp Duty for Residential Properties Declaration Form and retain the original declaration form for at least five years from the date of sale or disposal of the property (the form does not have to be submitted to IRAS).
Another possible property sales tax in Singapore is the Goods and Services Tax (GST). Commercial properties in Singapore are subject to GST if sold by a GST-registered entity. This does not apply to residential properties, like HBD flats, condominiums, and landed houses. The GST rate in Singapore is 8%.
Understanding Singapore’s Seller’s Stamp Duty (SSD) is essential before selling property in Singapore. To effectively navigate the legal framework and ensure peace of mind, seeking guidance from professionals specializing in property taxes, investment due diligence, and property sales is recommended. This will not only save time but also guarantee a smooth transaction.
