Determining SSD liability
A. The type of property sold or disposed
B. The date of purchase or acquisition
C. The date of sale or disposal
D. Rates applicable
A. The type of property sold or disposed of
The property is a residential property.
B. The date of purchase or acquisition
- If a residential property is acquired on or after 20 Feb 2010, SSD is payable if the residential property is disposed of within the holding period.
In most instances, the date of purchase/ acquisition of a property refers to: - Date of Acceptance of the Option to Purchase* or
- Date of Sale and Purchase Agreement or
- Date of Agreement for Lease (for new HDB flat) or
- Date of transfer to a beneficiary where the property was originally held on trust for non-identifiable beneficial owner(s) or
- Date of Transfer where the above (a), (b), (c), (d) and (e) are not applicable
- In some instances, the date of purchase/ acquisition of an interest in a property depends on the manner which it was acquired:
- For a property where the zoning of the land or the permitted use changes:
- If the vacant land or entire building with land which you are disposing of has been re-zoned from non-residential purposes to "Residential", "Residential/ Institution", "White", "Commercial & Residential" or "Residential with Commercial at first storey", the date of acquisition of the property is the date of the rezoning.
- If the building units or part of an entire building which you are disposing of has its permitted use being changed from non-residential purposes to residential/ mixed-residential purposes, the date of acquisition of the property is the date of the change of use.
- For Selective En bloc Redevelopment Scheme (SERS) replacement flat, the date of purchase refers to the date of the executed Agreement for Lease. While sellers may have fulfilled the Minimum Occupation Period for SERS replacement flat, sellers may still be subject to SSD if the sale is within the SSD holding period, which commences from the date of Agreement for Lease. Please see FAQ below.
*Excludes an Option to Purchase that is subject to the execution/ signing of the Sale and Purchase Agreement
Manner of acquisition of that interest in the property | Date of acquisition of that interest in the property |
---|---|
Transfer pursuant to divorce where it fulfills Stamp Duties (Matrimonial Proceedings) Remission Rules (MP rules) | 1. Date of the marriage (that has ended); or 2. Date the interest was acquired by the transferor prior to the transfer; whichever is later. |
Transfer pursuant to inheritance | Date the interest was acquired by the deceased |
Transfer of HDB Flat within family where it fulfills Stamp Duties (Transfer of HDB Flat Within Family) Remission Rule | Earliest date of acquisition of the flat by any of the existing owners, and who continually holds an interest in the flat from the time of acquisition to disposal |
C. The date of sale or disposal
In most instances, the date of sale/ disposal of a property refers to:
- Date of Acceptance of the Option to Purchase* by the buyer to the seller's offer to sell or
- Date of Sale and Purchase Agreement or
- Date of Transfer where (a) and (b) are not applicable
*Excludes an Option to Purchase that is subject to the execution/ signing of the Sale and Purchase Agreement
D. Rates applicable
The rates of SSD payable on residential property acquired on and after 20 Feb 2010 and disposed of within certain duration, are summarized in the table below:
Date of purchase or date of change of zoning / use | Holding period | SSD rate (on the actual price or market value, whichever is higher) |
---|---|---|
Between 20 Feb 2010 and 29 Aug 2010 (all inclusive) | Up to 1 year | 1% on first $180,000 2% on next $180,000 3% on remainder |
More than 1 year | No SSD payable | |
Between 30 Aug 2010 and 13 Jan 2011 (all inclusive) | Up to 1 year | 1% on first $180,000 2% on next $180,000 3% on remainder |
More than 1 year and up to 2 years | 0.67% on first $180,000 1.33% on next $180,000 2% on remainder | |
More than 2 years and up to 3 years | 0.33% on first $180,000 0.67% on next $180,000 1% on remainder | |
More than 3 years | No SSD payable | |
Between 14 Jan 2011 and 10 Mar 2017 (all inclusive) | Up to 1 year | 16% |
More than 1 year and up to 2 years | 12% | |
More than 2 years and up to 3 years | 8% | |
More than 3 years and up to 4 years | 4% | |
More than 4 years | No SSD payable | |
On and after 11 Mar 2017 | Up to 1 year | 12% |
More than 1 year and up to 2 years | 8% | |
More than 2 years and up to 3 years | 4% | |
More than 3 years | No SSD payable |
SSD payable to be rounded down to the nearest dollar.
Rates and computation
SSD is computed by applying the requisite SSD rate on the higher of the selling price or the market value of the residential property as at the date of sale or disposal.
Where parts of the residential property were acquired by the vendor at different times, the holding period for each part acquired will be computed from the respective acquisition date.
Where the sale or disposal comprises only a partial interest in the residential property, SSD payable will be based on the higher of the selling price or market value of the partial interest.
Example 1: For properties purchased between 14 Jan 2011 and 10 Mar 2017 (all inclusive), the holding period is 4 years.
- Mr M purchased his residential property on 22 Feb 2011 and sold it on 25 Jan 2012 for $1,500,000.
- Holding period: Less than 1 year
16% of selling price or market value, whichever is higher | $1,500,000 x 16% |
SSD payable | = $240,000 |
In this example, if the sale of the property is on or after 22 Feb 2015, no SSD is payable.
Example 2: For properties purchased on or after 11 Mar 2017, the holding period is 3 years.
- Mr Q purchased his residential property on 17 Mar 2017 and sold it on 01 Feb 2018 for $1,500,000.
- Holding period: Less than 1 year
12% of selling price or market value, whichever is higher | $1,500,000 x 12% |
SSD payable | = $180,000 |
In this example, if the sale of the property is on or after 17 Mar 2020, no SSD is payable.
Exemptions from SSD for residential properties under the Stamp Duties Act
SSD for residential properties is exempt for sellers / transferors under the following scenarios. No application to Commissioner of Stamp Duties is required for the sellers / transferors.
- Licensed housing developers who are governed under the Housing Developers (Control and Licensing) Act need not pay SSD when selling residential properties developed by them.
- Public authorities (e.g. HDB and JTC) in exercising their functions and duties need not pay SSD when selling residential properties.
- Residential property owners need not pay SSD when their properties are acquired by the Government under the Land Acquisitions Act.
- Individuals who own residential properties need not pay SSD if they have been adjudged a bankrupt and are required to dispose of their residential properties as a result of bankruptcy.
- Companies that own residential properties need not pay SSD when disposing of their residential properties upon involuntary winding up.
- Foreigners need not pay SSD when they have to sell their residential properties as required under the Residential Property Act.
- For HDB flat sellers or transferors who bought or acquired their flats on or after 30 Aug 2010 and their flats have been identified for Selective Enbloc Redevelopment Scheme (SERS) but sell their flats in the open market before HDB claims them.
- HDB flat sellers or transferors who return their flats to HDB as a result of re-possession by HDB or under the SERS.
- A person who owns an HDB flat and inherits another HDB flat, is required under the HDB’s regulations to dispose of either the inherited HDB flat or the existing HDB flat. This exemption applies to disposal of flats on or after 18 Dec 2015.
- A person who owns a non-HDB flat and inherits an HDB flat, is required under the HDB’s regulations to dispose of the inherited HDB flat. This exemption applies to disposal of flats on or after 18 Dec 2015.
- A person who owns an HDB flat marries a person who owns another HDB flat and the couple is required under the HDB regulations to dispose of either one of the HDB flats. This exemption applies to disposal of flats on or after 18 Dec 2015.
Remission of SSD for residential properties under the remission rules
Non-licensed developers may be eligible for remission of SSD when selling residential properties developed by them only if they are registered companies or businesses, and are lawfully carrying on the business of housing development.
You can e-Stamp via the e-Stamping Portal to obtain the remission certificate.
Administration
- Payment of SSD can be done via the e-Stamping Portal.
- For details on payment modes, you may wish to refer to How to Pay Stamp Duty.
- Law firms representing the sellers are required to fill in a Seller's Stamp Duty for Residential Properties Declaration Form (PDF, 110KB). The completion of this form is mandatory.
- The completed form need not be submitted to IRAS. However, law firms are advised to retain the original declaration forms for at least 5 years from the date of sale/ disposal of the property as IRAS may request for it for audit purposes.
FAQs
In a collective sale, what is the date of disposal to be considered for the purpose of determining SSD?
The date of execution is often times also the date of successful bidding (i.e. the date of the letter by which the collective sale committee accepts the winning bid). For avoidance of doubt, kindly check with your lawyer on the date of execution of the collective sale contract.
I did not consent to the collective sale of my condominium executed on 26 February 2018. Am I liable for SSD if I had bought my condominium on 04 September 2017?
When do I need to pay SSD and can the payment be deferred?
SSD must be paid within 14 days from the date of the executed sale contract, otherwise, a penalty will be imposed for late stamping and payment. There is no deferment of stamp duty payment.
The date of execution is often times also the date of successful bidding (i.e. the date of the letter by which the collective sale committee accepts the winning bid). For avoidance of doubt, kindly check with your lawyer on the date of execution of the collective sale contract.
However, for properties undergoing collective sale, requests may be considered favorably for the waiver of the penalty incurred up to the later of the following dates, whichever is applicable:
(1) Date that the Strata Titles Board grants the Collective Sale Order;
(2) 30 days from the date of decision made by the High Court with no further objection; or
(3) Date of decision made by the Court of Appeal.
Such requests are subject to the following conditions:
(1) The collective sale contract is stamped and
(2) The waiver request is submitted to the Commissioner of Stamp Duties where both conditions are fulfilled within 14 days from the date of the executed contract.
To submit the request for waiver, please perform the following steps:
(1) Log on to e-Stamping Portal
(2) Select "Requests"
(3) Select "Apply for Assessment/ Appeal/ Remission"
(4) Provide the document reference number which was generated upon stamping
(5) Select "E-appeal" as the nature of request.
Please be informed that requests to waive penalties incurred up to the date that the collective sale is legally completed or the date that you receive the sale proceeds will not be acceded to.