
“Why are my stamp duty calculations wrong?”
Imagine this – You wish to buy a S$900,000 property and as a Singapore PR, you would need to pay the buyer stamp duty (BSD) of 3% + 5% additional buyer stamp duty (ABSD). So for $900,000, the total stamp duty is $21,600 (BSD) + $45,000 (ABSD) = $66,600. The client was shocked and went, “Wrong! It’s $72,000!”
So the final verdict, we are correct. How this is possible? IRAS giving discount to homebuyers?
The answer lies in the calculation breakdown table below
Purchase Price or Valuation (whichever is higher) | BSD Rates for residential properties | BSD Rates for non-residential properties |
First $180,000 | 1% | 1% |
Next $180,000 | 2% | 2% |
Next $640,000 | 3% | 3% |
Remaining Amount | 4% (applies for above 1 Mil) | 3% |
For this client case, his BSD and ABSD is calculated like this.
Buyer Stamp Duty | Additional Buyer Stamp Duty |
$180,000 * 1% = $1,800 $180,000 * 2% = $3,600 $540,000 * 3% = $16,200Total: $1.8k + $3.6k + $16.2k = $21,600 |
$900,000 * 5% = $45,000 |
Total Stamp duty = $21,600 + $45,000 = $66,600
So what if this same PR makes a purchase of a S$1,100,000 property?
Buyer Stamp Duty | Additional Buyer Stamp Duty |
$180,000 * 1% = $1,800 $180,000 * 2% = $3,600 $640,000 * 3% = $19,200Remaining $100,000*4% = $4,000 Total: $1.8k + $3.6k + $19.2K + $4k = $28,600 |
$1,100,000 * 5% = $55,000 |
Total Stamp duty = $28,600 + $55,000 = $83,600