SINGAPORE: The buyer's stamp duty rate will increase for both residential and non-residential properties of higher value, Deputy Prime Minister Lawrence Wong said in his Budget speech on Tuesday (Feb 14).
Buyer's stamp duty is a tax paid on documents signed when one buys or acquires property in Singapore.
For homes, the portion of the value in excess of S$1.5 million and up to S$3 million will be taxed at 5 per cent, up from the current rate of 4 per cent.
The value of the property in excess of S$3 million will be taxed at 6 per cent.
The changes will apply to all properties acquired from Wednesday, and are expected to affect 15 per cent of homes, said Mr Wong, who is also the Finance Minister.
Taxes on properties, luxury cars and cigarettes are set to rise, and are expected to generate about S$800 million per year in revenue, announced Finance Minister Lawrence Wong in his Budget speech on Tuesday (Feb 14). Michelle Teo reports.
There will be a transitional provision, where the current stamp duty rates will apply for cases where the Option to Purchase (OTP) was granted to potential buyers on or before Feb 14.
The OTP has to be exercised on or before Mar 7 or within the OTP validity period, whichever is earlier, without any changes made from Feb 15 onwards.
For non-residential properties, the portion of the value in excess of S$1 million and up to S$1.5 million will be taxed at 4 per cent, while that in excess of S$1.5 million will be taxed at 5 per cent, up from the current rate of 3 per cent.
These changes are expected to affect 60 per cent of non-residential properties.
"This is expected to generate an additional S$500 million in revenue per year, but the actual amount will depend on the state of the property market," said Mr Wong.
The Additional Conveyance Duties for Buyers, which applies to acquisitions of stakes in property holding entities, will be raised from up to 44 per cent to up to 46 per cent, said the Ministry of Finance.