ABSD Remission/Refund – Wing Tai Holdings Singapore https://buycondo.sg Wing Tai Holdings Singapore who specializes in helping both local and foreign buyers to source and purchase their dream home as well Property Sale and Property Management. Fri, 28 Apr 2023 06:33:36 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.2 https://buycondo.sg/wp-content/uploads/2021/01/icon.png ABSD Remission/Refund – Wing Tai Holdings Singapore https://buycondo.sg 32 32 ABSD Remission/Refund https://buycondo.sg/absd-remission-or-refund/ https://buycondo.sg/absd-remission-or-refund/#respond Thu, 27 Apr 2023 05:46:49 +0000 https://buycondo.sg/?p=1839 ABSD Remission/Refund                                                           Count of properties: Dependent on the date of contract (i.e. date of exercise of option) When there are multiple purchasers, higher ABSD applies What...

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ABSD Remission/Refund

new ABSD rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  • Count of properties: Dependent on the date of contract (i.e. date of exercise of option)
  • When there are multiple purchasers, higher ABSD applies

What is the difference between remission and refund?

• Remission: When ABSD does not need to be paid at all
• Refund: When ABSD needs to be paid, but can be claimed back later

ABSD Remission

Remission is applicable in the following scenarios:-
• Purchase of HDB flats and EC units
• Purchase by married couples
• Purchase by foreigners under Free Trade Agreements

A Singapore Citizen (SC) who purchases an HDB flat or EC as his first property does
not pay any ABSD. A Singapore PR (SPR) who purchases an HDB flat as his first
property pays ABSD of 5%.
ABSD remission is granted in the following scenarios:

•For purchase of HDB flat/new EC by a household which comprises SC(s) and
SPR(s) co-owners

• For purchase of HDB flat/new EC in cases where HDB grants the household a 6-
month or such other period as may be stipulated by HDB to dispose of its existing
property(ies)

• A lower ABSD rate of 5% (instead of 30%) will apply for purchase of HDB flat by
SPR household where HDB grants the SPR a 6-month or such other period as may
be stipulated by HDB to dispose of the existing property(ies)

• Usually, when there are multiple purchasers to a property, the higher
applicable rate applies. However, for married couples with at least one SC,
ABSD remission may apply (only for their first property).

Eg. SC-SPR buying first property
If not married, 5% ABSD
If married, no ABSD

Eg. SC-FR buying first property
If not married, 60% ABSD
If married, no ABSD

• Usually, foreigners would have to pay 60% ABSD. However, due to
free trade agreements that Singapore has with certain countries, their
nationals and/or residents are accorded the same treatment as SCs
• Nationals and Permanent Residents of:-
• Iceland
• Liechtenstein
• Norway
• Switzerland
• Nationals of:-
• United States of America

ABSD Refund

• Purchase of second residential property by a married couple involving
at least one SC spouse may qualify for ABSD refund subject to the
following conditions:-
• ABSD has been paid on the second residential property
• The first property (co-owned or owned separately) is sold within 6 months
from the date of purchase of the second property (if it is a completed
property) or TOP/CSC (whichever is earlier) of the second property (if it is an
uncompleted property)
• The married couple has not purchased or acquired a third or subsequent
property from the date of purchase of second property to the date of sale of
the first property
• Rationale: No need to pay ABSD if it is a matrimonial home

Procedure for Remission/Refund

• All applications for remission/refund (except for purchase of HDB flats
and new EC units) must be submitted to Commissioner of Stamp
Duties for consideration
• For purchase of HDB flats and new EC units, automatic remission
• Usually done by the solicitors for the purchasers

Scenerio 1

Q: A US citizen (who is also a SPR) buys his first property in Singapore. Is ABSD payable (and if so, how much)?

A: No ABSD payable. ABSD is remitted.

Scenerio 2

Q: Husband and wife (both Singaporeans) own one property. The
husband buys a 2nd property and pays 20% ABSD. They then sell
their 1st property. Can ABSD be refunded?

A: No. The 2nd property has to be owned by both husband and
wife.

Scenerio 3

Q: Husband and wife (both Singaporeans) own 2 properties. They
then buy a 3rd property together, and pay 30% ABSD, and sell the
1st and 2nd property. Can ABSD be refunded?

A: No. ABSD refund is only applicable for the 2nd property

Also check the Budget for 2023 Housing Policies.

Top 10 FAQ from CEA on ABSD Remission.

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