Renunciation of interest in trust over residential property by beneficial owner (Section 22C)

Stamp duty on the renunciation of interest in trust over residential property is applicable to any residential property transferred to be held on trust on or after 10 May 2022, where the beneficiary/beneficiaries of the trust are identifiable and have beneficial ownership of the trust residential property i.e. the residential property is held on bare trust. 

The renunciation by the beneficiary results in a change in beneficial owner of the trust residential property, as the beneficial ownership of the trust residential property is transferred back to the settlor. As such, stamp duty is payable both on the disposal and acquisition of the beneficial interest in the trust residential property as :-

1. If the beneficiary renounces his interest in the trust residential property within the Seller’s Stamp Duty (“SSD”) holding period, the beneficiary is liable to pay SSD on the renunciation; and
2. The settlor is liable to pay Buyer’s Stamp Duty and Additional Buyer’s Stamp Duty (if applicable).

The beneficiary renouncing their interest in the trust residential property must fill up the Section 22C Notice. The Section 22C Notice will be the chargeable instrument for stamp duty purposes, and is to be served to both the settlor and the Commissioner of Stamp Duties.   

Example:

John is a beneficiary of a bare trust declared on 1 June 2022. Under the terms of the trust, John is the sole beneficiary of a residential property and his beneficial ownership in the residential property has vested at the point of declaration of trust. The settlor of the trust is his father, James, a Singapore citizen who owns 2 other residential properties.

 On 1 Dec 2022, John decides to renounce his interest in the residential property held in trust.

 As John renounced his interest within the SSD holding period, he is liable to pay SSD on the market value of the residential property being renounced.

 James, as the settlor, is liable to pay BSD on the full share of the residential property that has resulted back to him, as well as ABSD of 25% on the market value of the residential property as this is his third residential property.

Serving the Section 22C Notice to IRAS

For Beneficiary

The beneficiary is required to serve the Section 22C Notice (PDF, 68KB) on the settlor and the Commissioner of Stamp Duties (“COSD”) within the prescribed period i.e. 14 days after the date of renunciation.

You can submit a copy of the Section 22C Notice to COSD by either of the methods below:-

1. By email to: [email protected]

Please indicate in the subject header “Service of Section 22C Notice – [Address of trust property]” when sending the email.

 or

2. By registered post to:

Commissioner of Stamp Duties

55 Newton Road

Singapore 307987

Please indicate the letter header or title as “Service of Section 22C Notice – [Address of trust property]”

Please also attach the following supporting documents in your submission:

1. A copy of the trust instrument e.g. trust deed, declaration of trust

If Seller’s Stamp Duty is payable, IRAS will contact you with payment instructions.

The property’s market value to determine the Stamp Duty liability is as at the date that the Notice is served by the beneficiary to the COSD within the prescribed period.

For Settlor

Upon receipt of the Section 22C Notice from the beneficiary, the settlor should, within 14 days after the date of receipt of the Notice or 14 days after the last day of the prescribed period, whichever is earlier, stamp and pay duty by logging onto the e-Stamping Portal with your Singpass (Select “Request” > “Apply for Assessment/ Appeal”)

Please also attach the following supporting documents in your submission:

1. A copy of the trust instrument e.g. trust deed, declaration of trust
2. A copy of the duly completed and executed Section 22C Notice that was received from the beneficiary 

IRAS will contact you with the payment instructions. The property’s market value to determine the stamp duty liability is as at the date that the Notice is served by the beneficiary to the COSD within the prescribed period.