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[h=2]Govt makes a cool $1B from Additional Buyer’s Stamp Duty[/h]
May 3rd, 2013 |
Author: Editorial
The Govt introduced the Additional Buyer’s Stamp Duty
(ABSD) in Dec 2011 in its attempt to cool the property market. ABSD was further
increased in Jan this year in the Govt’s further attempt to cool the market when
its earlier measures were not working. ABSD is payable on the purchase or
acquisition of private residential properties.
The ABSD has brought a windfall for the Govt. Since its introduction in Dec
2011 to Mar this year, the Govt has collected a cool $1.03 billion, as revealed
by IRAS.
The hike in ABSD in Jan this year allows the Govt to collect even more tax
revenue.
From 12 Jan 2013, buyers or transferees of private properties, who are:
Foreigner
PR
Singaporean
Foreigners have forked out $580 million in ABSD for 3,041 homes from Dec 2011
to Mar this year, while Singaporeans and permanent residents (PRs) have paid
$386 million for 7,269 homes, IRAS said. Non-individuals such as companies paid
a further $66 million in levies for 285 units.
Experts say developers are dangling discounts and other incentives to
alleviate the ABSD curb.
In the previous financial year ended in Mar 31, 2012, IRAS collected $2.3
billion in stamp duty from property sale and purchase agreements. This figure
includes levies like the ABSD and the seller’s stamp duty. It is expected that
IRAS will collect even more for this financial year ending in Mar this year.
Savills Singapore estimates that 30% to 40% of buyers at new launches since
the January measures came in are second, third or subsequent home buyers.
A Savills’ spokeperson said, “They are creating reasons to buy. It could be
for rental income when the population grows to over six million, capital gains
or to hedge against the possibility of their children not being able to afford
homes in the future.”
.
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(ABSD) in Dec 2011 in its attempt to cool the property market. ABSD was further
increased in Jan this year in the Govt’s further attempt to cool the market when
its earlier measures were not working. ABSD is payable on the purchase or
acquisition of private residential properties.
The ABSD has brought a windfall for the Govt. Since its introduction in Dec
2011 to Mar this year, the Govt has collected a cool $1.03 billion, as revealed
by IRAS.
The hike in ABSD in Jan this year allows the Govt to collect even more tax
revenue.
From 12 Jan 2013, buyers or transferees of private properties, who are:
Foreigner
- Foreigners would have to pay ABSD of 15% on the purchase or acquisition of
any residential property.
PR
- PR would have to pay ABSD of 5% on the purchase or acquisition of their
first residential property. - PR who already own 1 or more residential properties would have to pay ABSD
of 10% on the purchase or acquisition of another residential property.
Singaporean
- Singaporeans who already own 1 residential property would have to pay ABSD
of 7% on the purchase or acquisition of the second residential property. - Singaporeans who already own 2 or more residential properties would have to
pay ABSD of 10% on the purchase or acquisition of another residential property.
to Mar this year, while Singaporeans and permanent residents (PRs) have paid
$386 million for 7,269 homes, IRAS said. Non-individuals such as companies paid
a further $66 million in levies for 285 units.
Experts say developers are dangling discounts and other incentives to
alleviate the ABSD curb.
In the previous financial year ended in Mar 31, 2012, IRAS collected $2.3
billion in stamp duty from property sale and purchase agreements. This figure
includes levies like the ABSD and the seller’s stamp duty. It is expected that
IRAS will collect even more for this financial year ending in Mar this year.
Savills Singapore estimates that 30% to 40% of buyers at new launches since
the January measures came in are second, third or subsequent home buyers.
A Savills’ spokeperson said, “They are creating reasons to buy. It could be
for rental income when the population grows to over six million, capital gains
or to hedge against the possibility of their children not being able to afford
homes in the future.”
.
Join our TRE facebook page here: http://www.facebook.com/TREmeritus
