Understanding Seller's Stamp Duty (SSD) for Residential Properties in Singapore
Published on 30/05/2024
Seller's Stamp Duty (SSD) is a tax imposed on property owners in Singapore who sell their residential properties within a specific holding period after purchasing them. This duty aims to curb speculative property transactions and stabilize housing prices.
Key Criteria for Seller's Stamp Duty (SSD)
The SSD applies under the following conditions:
1. Holding Period: Properties sold within three years from the date of purchase.
2. Applicable Properties: Properties acquired on or after 20th February 2010.
SSD Rates Based on Holding Period
The SSD rates depend on the holding period of the property and the date of acquisition. The following table summarises the rates:
Source: IRAS
Computation of SSD
SSD is calculated based on the higher of the selling price or the market value of the property, as determined by the Inland Revenue Authority of Singapore (IRAS).
Exemptions from SSD
Certain transactions are exempted from SSD, including:
• Transfers between family members due to inheritance.
• Transfers under divorce settlements.
• Compulsory acquisitions by the government.
How to Pay SSD
1. The SSD must be paid within 14 days from the date of the property sale agreement.
2. Payment can be made via electronic services provided by IRAS.
Overview
Seller's Stamp Duty plays a crucial role in discouraging short-term speculative property activities in Singapore's real estate market. Property buyers and sellers should be aware of SSD obligations to avoid unexpected costs and ensure compliance with IRAS regulations.
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