In his letter 'Additional Buyer's Stamp Duty (ABSD) unfair to two segments of the market', Mr Leow Zhi Xiang highlighted that property developers which are involved only in small housing projects (of 4 or less units) are disadvantaged by ABSD.

With regard to ABSD, the treatment of purchases of land for small development projects reflects the difficulty of establishing upfront whether the purchase is in fact for investment (similar to the buying of a few properties at the same time) or for development and sale. We recognise however that there could be bona fide small developers who acquire properties for development and sale. We will therefore consider ABSD remission to such developers based on the facts of each case, and subject to conditions. More information is available on the IRAS website.

We thank Mr Leow for his feedback.

Claire Chua (Mrs)
Director (Corporate Communications)
Inland Revenue Authority of Singapore