Ministry of Finance (MOF) has issued a joint press release with MND and MAS with regard to property measures.
1. Additional Buyer’s Stamp Duties (ABSD) and Loan to Value (LTV) Limits
The Government is therefore retaining the current ABSD rates and LTV limits.
2. Seller’s Stamp Duties (SSD)
The SSD is currently payable by those who sell a residential property within 4 years of purchase, at rates of between 4% and 16% of the property’s value
The Government will therefore revise the SSD as follows:
a) Impose SSD on holding periods of up to 3 years, down from the current 4 years; and
b) Lower the SSD rate by four percentage points for each tier. The new SSD rates will range from 4% (for properties sold in the third year) to 12% (for those sold within the first year).
The new SSD rates will apply to all residential property purchased on and after 11 March 2017. Details of the revised SSD rates are in the Annex.
Existing and new Seller’s Stamp Duty (SSD) rates for residential properties
|SSD Rates on the actual price or market value based on date of purchase or date of change of zoning/use|
|14 Jan 2011 to 10 March 2017 (both dates inclusive)||On and after 11 March 2017|
|Holding Period||Up to 1 year||16%||12%|
|More than 1 year and up to 2 years||12%||8%|
|More than 2 years and up to 3 years||8%||4%|
|More than 3 years and up to 4 years||4%||No SSD payable|
|More than 4 years||No SSD payable|
3. Total Debt Servicing Ratio (TDSR)
MAS will no longer apply the TDSR framework to mortgage equity withdrawal loans with LTV ratios of 50% and below.
4. Stamp Duties on Transfer of Equity Interest in Entities whose Primary Tangible Assets Are Residential Properties in Singapore
The 2nd Minister for Finance will be introducing legislative changes in Parliament today aimed at treating transactions in residential properties on the same basis irrespective of whether the properties are transacted directly or through a transfer of equity interest in an entity holding residential properties. Significant owners of residential property-holding entities or PHEs will be subject to the usual stamp duties when they transfer equity interest in such entities, similar to what would happen if they were to buy or sell the properties directly.